Starting up a motor trade business for the first time? Gallagher can help with your motor trade insurance arrangements.
Looking to start a new motor trade business?
We’ve written a quick start guide with some of the things you need to get yourself up and running when setting up a motor trade insurance business.
Why do start up traders need insurance?
Whether you’re selling or repairing and servicing vehicles – or both – you will need to drive them to move them from one location to another, test their roadworthiness or allow customers to test drive them.
For these reasons, a motor trade insurance policy is a must, whether you’re just starting out in the trade or have many years of experience.
What insurance do you need to set up a motor trade business?
Most motor traders start out working from home, on a part-time basis. Road risks insurance is the minimum cover you will need for this, allowing you to drive vehicles on a third-party, third-party fire and theft or comprehensive basis, depending on the level of cover you select.
Accompanied demonstration cover can be added, allowing customers to test drive vehicles while you accompany them.
Public liability insurance can also be added to road risks cover, helping you should a member of the public claim for alleged injury in connection with your work. Employers’ liability cover usually comes with this, offering the same protection for any employees you might have – a legal requirement.
As your business grows – or if you already have a separate garage or showroom facility – you’ll need to consider traders combined insurance, which can cover your business premises, stock of vehicles, tools and equipment, money on-site and more besides.
Do start up traders need specific insurance?
Start-up traders don’t need different insurance to those who have been trading a long time – you just need the right level of road risks insurance or traders combined cover to meet your needs.
To save money when setting up for the first time, think about:
- Is it worth transferring your private car no claims bonus to your motor trade policy?
- Is mirroring your private car policy an option worth considering?
- Is it worth paying a little more for comprehensive cover, or would third-party only or third-party fire and theft be enough?
- Is it worth opting for a higher excess on your road risks policy?
- If you’re a younger trader, have you already got experience in the motor trade?
Gallagher can explain all your options and what they mean, so you’re clear about the benefits and drawbacks when it comes to taking out motor trade insurance for the first time.
Get a quote for part-time motor trade insurance
Get a quote online for your start up motor trade insurance now.
What cover do I get?
- Road risks insurance
- Cover for vehicle transporters
- Goods in transit cover
- Cover for vehicles in transit up to £100,000 and up to 15 tonnes Gross Vehicle Weight
- Cover for loading and unloading vehicles
- Optional traders combined cover for business premises