Who Is Motor Trade Insurance Designed For?
Thousands of businesses, in the UK, need motor trade insurance. It is not just designed for people who deal in cars. Valets and mechanics also need specialist motor insurance.
In the UK, all cars now have to be insured or declared as officially off the road. Any vehicle without insurance or a SORN (Statutory Off Road Notification) is considered illegal and can be impounded. This change came into effect in June 2011 bringing about a big change for car dealers. They have to be careful to insure their cars because, by law, they are the vehicles owner until it is sold on again.
Why Valets and Mechanics Need Motor Trade Insurance
The idea of a car valet needing motor trade insurance may seem odd to many people. However, those who work in the industry know the importance of having this kind of insurance. Whilst cleaning a car most valets have to move the car, which of course means driving it. If a car has fully comprehensive insurance and the valet has the permission of the driver to drive the car then the owners insurance will probably cover them. However, if the car they are cleaning has only third party insurance or worse no insurance any damage that occurs whilst the car is being driven by the valet would not be covered. This could leave the valet with a huge bill, possibly in trouble with that police. It can result in a lot of hassle sorting the problem out with the client.
The same is true of mechanics. They need to move vehicles around the premises during the repair process. In many cases, they need to take them out onto the road to test drive repairs.
Combined Motor Trade Insurance
Increasingly mechanics, dealers and, in some cases, valets are buying combined motor trade insurance. This form or insurance covers everyone employed by a company to drive the cars they are taking care of or fixing. For car dealers the insurance covers cars that they own, and fulfils the need to insure a vehicle or declare it as SORN. However, importantly this insurance can also cover the vehicles whilst in the garage or on the forecourt. It can also be extended to cover tools and equipment too.
If you are looking for motor trade insurance visit the Lion Heart Insurance website. We offer tailored insurance policies that are suitable for all kinds of businesses.
