Some trade policy insights from Jensten for you, don’t let the thieves win;
Are you a part of the motor trade business? Whether you’re running a valet parking company, a car dealership, or a breakdown recovery firm. The security of your vehicles is aligned with your business’ success. Recent data from the Office of National Statistics (ONS) reveals a concerning 24.9% year-on-year increase in vehicle thefts across England and Wales, with 130,389 vehicles stolen last year, up from 104,435 in 2021.
This rise in vehicle thefts is alarming and underscores that motor trading business owners need to prioritise their security measures. Thieves are able to keep with the new security technology advancements of car manufacturers. Techniques such as relay theft, key cloning, and signal blocking remain prevalent methods used by criminals to take vehicles. These new vehicle theft techniques are overshadowing traditional theft methods like breaking windows or forcing doors open.
Who Needs a Motor Trade Policy?
If you’re in the business of buying and sale of vehicles, transporting them, or maybe you offer vehicle servicing and repair services. Then you need a motor trade policy.
This includes:
- Home-based motor traders
- Repair garages
- Vehicle transporters
- Service and repair garages
- Part-time and full-time vehicle sales professionals
- MOT providers
- Mobile mechanics
- Classic car restorers
- Vehicle electricians
- Car dealerships
- Vehicle breakdown and recovery firms
- Vehicle collection and delivery businesses
- Exhaust and tyre fitters
- Valeters
- Windscreen repairers and fitters
- Petrol station owners
How Does Motor Traders Insurance Work?
Motor traders’ insurance is a specialised cover that protects businesses engaged in buying and selling vehicles. It is offered to both part-time and full-time traders and covers a diverse range of different occupations within the motor trade industry, as mentioned above. Whether you’re buying and selling vehicles, running a breakdown and recovery service, operating a garage, or transporting cars, motor trade insurance has you covered.
What does motor trade insurance cover?
As a motor trade business owner, in the face of evolving threats, motor trade insurance becomes your aid. One of the best parts about motor trade insurance is its flexibility. It can be tailored to the specific needs of various motor trade businesses, whether you operate from home, a showroom, a garage, or are involved in vehicle transport.
All options have been tailored to the unique challenges of the industry. From road risks and public liability insurance to material damage and coverage for your business premises, this insurance is designed to provide extensive protection.
Motor trade insurance extends its coverage to various aspects of your business:
Road Risks: Allows you to drive you and others’ vehicles on the road as part of your day-to-day business.
Public Liability Insurance: Protects you if someone is injured or has their property damaged while on your premises.
Material Damage: Provides cover for damage done to any stock vehicles or equipment you own.
Business Premises: Covers your trade if you operate from a lot, garage, or car showroom.
Business Interruption: Offers income protection in case of a disaster, such as a flood or fire, preventing you from trading.
Home Contents: If you conduct your motor trade business from home, this offers contents cover that may not be included in your home insurance.
Employers’ Liability Insurance: A legal requirement if you have any staff, whether full-time or part-time.
Extra Driver Cover: Important if your employees drive customers’ cars.
Multiple Vehicle Types Cover: Adaptable to cover various vehicle types, from cars and vans to trucks and HGVs.
Tools: Covers business tools, diagnostic equipment, portable hand tools, and more.
Sales and Service Indemnity: Protects against claims of damage or injury after the sale or repair of a vehicle.
Goods in Transit Insurance: Offers protection for any goods you transport, such as parts.
Engineering Inspection Service: Legal requirements for safety assessments to test equipment or machinery used in your business.
Business Contents: Covers your stock, computers, phones, and other business equipment.
Products Liability Insurance: Protects you against claims if a product you use or recommend causes damage or harm.
Top Tip: Update the MID
For motor traders, you cannot overlook updating the Motor Insurance Database, otherwise known as the MID. All insured vehicles and trade plates need to be added to the MID. It is a legal obligation.
This shows authorities that you have a motor insurance policy that covers you. Failure to comply with these regulations can result in serious consequences, including fines of up to £5,000. It is also important not to forget to keep these details up to date in the MID if things change.
Safeguarding your motor trade business from the rising threat of vehicle theft requires a multi-faceted approach. Motor trade insurance is the answer. Tailored coverage combats the unique risks faced by businesses in the automotive industry.
If businesses do not know the importance of security, recognise the value of motor trade insurance, or staying compliant with legal obligations such as updating the MID. You may struggle to keep a business afloat. Take proactive steps today to protect your motor trade business.
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