Motor trade insurance is aimed at two specific areas of the automotive sector within the UK and both of these categories are particularly specialized. One level of motor trade insurance is targeted for premises that repair motor vehicles while the other covers breakdown operations or occupations where vehicles are taken on the road.
Repair insurance covers any business operating from designated premises that specialize in repair work. This can cover mechanical stations, fast-fit centers or body shops. However, insurance does extend to the road testing of vehicles so employees involved in this type of work need to be named on the policy in order to be covered.
Motor Sales Insurance
Motor sales insurance is aimed at operations where vehicles are stored for sale. Coverage will usually extend to damage caused while a vehicle is on the forecourt although additional cover can be added to allow for test driving when a customer puts a vehicle through its paces prior to purchase.
Road Risk Insurance
Some areas of the motor trade are more dangerous than others and road risk insurance is designed for operations where most of the work takes place on the road. This usually includes breakdown recovery services or vehicle transportation companies. Because accidents are more likely to happen under these conditions, insurance is usually more expensive.
Under most circumstances, additional features can be added to motor trade insurance policies such as windscreen replacement, theft and vandalism coverage. Companies are advised to make their insurance as comprehensive as possible so that every potential outcome is accounted for.