Frequently Asked Questions – Motor Trade Insurance
Q: Can anyone have a Motor Trade Insurance policy?
A: No. Only those operating a business within the Motor Trade will qualify for Motor Trade Insurance.
Q: Will my Motor Trade Insurance policy cover me in all vehicles?
A: No. Certain classes of vehicle will be excluded or subject to restrictions in cover. It is also important to understand the definition of an insured vehicle.
Q: Can I borrow my friend’s car and be insured under my MTRR policy?
A: Unless your friend’s car is in your custody or control in connection with your business, it will usually be excluded.
Q: Can I Claim retail value on my Road Risks Insurance Policy?
A: Yes and No. Most Motor Trade Road Risks Insurers settle claims on a Trade Value basis for vehicles owned by the Policyholder. However, customer vehicles in your custody or control in connection with your business will usually be settled on a Retail/Market Value. Your Broker will be able to provide you with details.
Q: Do I need Motor Trade Insurance if I have a driving other cars extension?
A: Yes. Private Motor Insurance usually excludes Motor Trade use.
Q: Can I protect my No Claims Discount?
A: Yes. Many products now offer this facility. A Specialist Motor Trade Insurance Broker will be able to advise if this is a commercially viable option for you.
Q: Can I drive performance vehicles on my Motor Trade Road Risks policy?
A: Yes. Performance vehicles may be included as standard. However, it is critical that your Motor Trade Insurance Broker confirms this as some products exclude even moderately high grouped vehicles.
The Definition of an Insured Vehicle
This is a key area and often misunderstood by Customers and sadly some Brokers alike. The definition can be broken down into two component parts:-
1) Any vehicle owned by you
2) Any vehicle in your custody or control in connection with your business
Any vehicle owned by you
Care must be taken to understand the definition of “you”. “You” in this instance, will be the policy holder. The policyholder may be an individual, a partnership or a Limited Company. This means that a Director of a Limited Company may not be able to drive personally owned vehicles as he is not the policyholder. Similarly, named drivers vehicles will be excluded.
Any vehicle in your custody or control in connection with your business
Central to this point is the reason you have the vehicle. If you have it because you are working on it, it’s covered. If you have borrowed the vehicle for personal reasons (it may have a large boot for a camping trip) then it is NOT in your custody or control in connection with your business and therefore falls outside the definition of an Insured vehicle.
In summary, Motor Trade Insurance is a complex product, and quality advice from a Specialist Motor Trade Insurance Broker is essential. All advisors at Adelphi Insurance Brokers have extensive knowledge of the Motor trade Insurance market and are not paid sales commission.
Motor Trade insurance will usually provide cover for:-
1. Motor Trade Business Use
2. Social Domestic and Pleasure
Some Insurers will also offer “Additional Business Use” to cover activities in certain other trades.
Vehicles fitting the definition of an Insured vehicle will usually be covered for both Social and Business uses. However, slight variations are common across Insurers and a specialist Motor Trade Insurance Broker will be able to advise you accordingly.