Motor Trade Road Risk Insurance | Acorn Insurance

Motor Trade Road Risk Insurance

Insurance For Your Motor Trade Road Risk

A motor trade policy is designed solely for an individual, individuals or a company operating a business within the motor trade. Occupations within the motor trade can range from car sales, vehicle service and repair, vehicle valet, Vehicle Breakdown Recovery and Vehicle collection and delivery, plus many more!




The major difference between a private motor policy and a motor trade policy is that a private policy only specifies the vehicle and the driver. A motor trade policy specifies the driver only, not the vehicle, so you can drive any vehicle for motor trade purposes, meaning you don't have to take out separate policies for each vehicle.

A motor trade policy is a policy that covers a motor trader to drive any vehicle that is their property and any vehicle that is under his custody or control for motor trade purposes. This is vital when a motor trader has several customers'vehicles or stock vehicles in his care.

In addition to the standard Road Risk cover on a motor trade policy (cover for driving vehicles on the road) there are other extensions and options open to a motor trader to ensure all the trading activities are covered. Below are a couple of standard extensions for motor traders.

  • Demonstration Use - This extension gives the ability to the motor trader to allow a potential buyer to test drive a vehicle prior to purchasing the vehicle. As you can imagine this is an important extension as many buyers would not consider buying a vehicle without test driving a vehicle.
  • Public Liability - Again this is another important addition to a motor trade policy, this particular cover gives the motor trade protection from any claims arising as a direct result of their negligence. If a motor trade is valeting a customer's car at their home address and the homeowner trips over a bucket or slips on some cleaning products, this can be construed as negligence on the motor trader's behalf.

There are many other benefits and extensions applicable to a motor trade policy, however your broker will help you establish your exact needs as each motor trade policy is different dependant on the activities undertaken.

In regards to the cover level on your motor trade policy the question you need to ask yourself is: To what extent do I want to protect mine and my customers' vehicles?

  • Third Party Only (TPO) insurance is the minimum legal requirement for vehicles to be driven on public roads. TPO insurance will only cover loss, damage or injury inflicted on a third party. If you have Third Party Only insurance, your own losses, damage or injury (apart from passengers) will not be covered. A Motor Trader therefore really needs extra protection for his vehicles above this basic Third Party requirement.
  • Third Party Fire and Theft (TPFT) is a step-up from Third Party Only. TPFT pays out in the event of loss or damage to vehicles under the motor trader’s custody or control in the event of theft or fire, as well as to third party damage or injury claims. This is particularly relevant if vehicles are stolen and burnt out. The cost of TPFT cover is nowadays not significantly different to Comprehensive cover.
  • Comprehensive (Comp) A Comprehensive policy includes the same cover as TPO & TPFT plus accidental damage to the vehicles that the trader owns or has care of. So if a customer's vehicle is damaged in an accident while being tested, Comprehensive cover will cover the cost of the repairs.

Need insurance for your business property and stock too? Take a look
at our Motor Trade Combined Insurance

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