Motor Trade Insurance
Customers Vehicle Insurance
A motor trade combined policy will allow you to drive any motor vehicle in your custody or control in connection with your motor trade business, subject to your policy terms & conditions.
Some people in the motor trade, believe that if they have ‘a motor traders policy’ they can drive any vehicle, anywhere, anytime & for anything. This is wrong.
This is wrong because you can only drive bone fide customers vehicles in your custody or control for motor trade purposes, therefore, if you were to go shopping in a customers vehicle then strictly speaking this wouldn’t be covered.
If you have a road risks only policy, firstly, you are likely to be restricted to driving up to a certain value per vehicle, secondly, you will not have the requisite cover whilst in or around trade premises as most road risks only policies would exclude this cover. Note however that certain insurers may allow you to purchase this cover back in.
A potential grey area for road risks policies, is where Road Traffic Act starts & stops, to avoid this a number of road risks only insurers apply quarter of a mile exclusion to their policy, meaning the customers vehicle will not be covered (other than for third party risks) if parked within that area whilst in your custody or control, which would leave you exposed. At Real Automotive, we ensure our clients are aware of this & ensure they have the requisite advice & cover in place to meet their exposures.
Please also remember that if you have Third Fire & Theft cover or Third Party only, this doesn’t just apply to your vehicles but also whilst driving your customer’s vehicles, which means there would be no cover for any damage that you did to that vehicle.
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