# Motor Trade Insurance



## minipickup (Mar 17, 2012)

Hi All,

Do any of you have motor trader insurance and can offer some recommendations on companies to talk to on getting quotes?

I am thinking of doing some part time trading (with a bit of valeting for customers) so would prefer to go on recommendation rather than a google search.

I currently have 2 cars on an Admiral multicar policy with full no claims on each, so I would cancel these and add to a traders policy. I would also need cover for my day job as I use my main car for business (visiting customers and going to airports).

My plan is to have a small unit for the cars with an eventual move to full time trading if it is a success.

Any suggestions?


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## Raga (Feb 14, 2012)

Try tradex they are ok never really tried anyone else as my area is high on insurance no matter what !


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## [email protected] (Sep 28, 2009)

Hi

If you would like Adrian Flux to call you to see if we can offer any cover, please feel free to PM me a contact number and I'll get it arranged.

Regards

Dan



minipickup said:


> Hi All,
> 
> Do any of you have motor trader insurance and can offer some recommendations on companies to talk to on getting quotes?
> 
> ...


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## Shiny (Apr 23, 2007)

Minipickup, quick question, but are you planning on doing this legitimately from the outset, or initially as a bit of on the side income?

The reason is that to be eligible for Motor Trade insurance, you have to be self employed (or a partnership, llp, ltd) and operating a legitimate business for profit. Insurers have really clamped down this and now ask for evidence of trading in the event of a claim. If you are doing this legitimately, then all is ok.

Having a unit presents a very different insurance risk to a mobile valeter or selling cars from home. Nearly all "Road Risks" policies exclude customers vehicles on or parked within quarter or half a mile of a business premises (eg a unit). If a car is left in your care, you have a legal responsibility for its safekeeping under the law of "bailment", so you really need to look to a "Motor Trade Combined" policy covering vehicles at your trade premises to ensure you are adequately covered.

You then need to consider the type and value of cars you will be working on. If you are working on (ie on the valeting side of things, not the car sales) supercars worth £100k+, then your premium will run into several thousands of pounds. If the maximum value is more like £20k then risk is more attractive, but still depends on your level of exposure to sports and performance vehicles.

Unfortunately there is a limited insurance market for valeters and a limited insurance market for new ventures, especially on combined risks. But it is possible.

You can keep the premium down by selecting a low vehicle limit for the vehicles you are trading, maybe £5k if that is the market you are in, and then look to go mobile for the valeting risks where you can elimate the need to drive customers vehicles or the need to have a combined policy to cover them at your unit.

What is your other occupation? Additional business use under a motor trade policy is not generally popular with Motor Trade Insurers, but they will consider it for a limited list of trades. This may be a hurdle for you too.

Also not all insurers will accept private car NCB on a motor trade policy and those that do will only issue motor trade NCB if the policy is cancelled or lapses at a later date. So in two years time, if you use all your car NCB on the motor trade policy, the insurers will only issue proof of 2 years motor trade NCB. Not many insurers will accept motor trade NCB if you plan on going back to private car insurance at a later date.


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## minipickup (Mar 17, 2012)

Thanks for all the feedback.

Lloyd - my plan would be to set up a legit ltd company from the off. I guess I would be looking at the combined policy, the reason for the unit is that I know where there is one at a good price which would save having cars etc all over the drive.

The valeting would be more of a sideline, as I will probably have spare time and all the gear in place for my sales cars so it makes sense to use my time doing this, the focus would be on car sales.

The plan would be to not really go beyond say £15-£20k on cars, I think it would be unlikely to be above this.

My day job is field based tech role, so driving to uk customers or to airports to goto Europe. I think it maybe best to keep a private policy for this.

Certainly food for thought, the insurance aspect could be a hurdle to get over before anything else has started, as it could be too expensive to make it viable.


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## Shiny (Apr 23, 2007)

Your age and area is also an important rating factor and could have a massive bearing on prices. 

Depending on the above, you could see a road risks policy with a separate liability policy for under a grand, but a combined policy could run into a couple of grand or much more. You could always take a chance on your own cars at the unit if they are inexpensive, but you wouldn't want to be taking chances with customers vehicles.


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## skyinsurance (Jun 9, 2010)

You are very welcome to get in touch with us as well for a quotation.

http://www.skyinsurance.co.uk//motor-trade-insurance.html


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## minipickup (Mar 17, 2012)

Thanks all, I am travelling with work all next week but will look at this again the week after, I will also do some more research into what I need, ideally I would like to have one policy to cover everything, but maybe some aspects of what I am planning may not be worthwhile if the insurance is too high.

I will be in touch for quotes soon, thanks.


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