Motor Trade Insurance Terms and Phrases

Road Risk Cover

This is the basic level of motor trade insurance cover that most traders require to run their business. It allows you to drive vehicles on the public highway for social (subject to policy terms) and motor trade purposes. This cover can be comprehensive, third party fire and theft, or third party only. It will cover you on the highway but also, in most cases, cover you for some general risks associated with a private car policy

Combined Policy

This is a more extensive, and generally expensive, type of policy. It includes what the Road Risk cover does but then you can mix and match with additional covers. Eg Tools and Plant cover, Stock of Vehicles at premises cover, Liability cover, Business Interruption cover, etc. A combined policy is generally associated with a trader having premises (although in some cases they can be covered at home instead).

Demonstration Cover

There are two types of cover for this - accompanied and not. This addition to your policy allows a potential purchaser of your vehicle to test drive it. With accompanied you will have to sit next to the driver but with unaccompanied (generally this option only comes with larger combined policies) you can loan the customer the vehicle for a period of time. The potential purchasers licence must be seen before they can drive.

Additional Business Use

This useful addition allows you to carry out your motor trade business and also lets you do a secondary occupation. Eg a builder is a prime example of someone that may need this cover - both to buy and sell vehicles, but also travel to different places of work for his construction business

Split Indemnity

This is perfect for people with low value own cars but who fix, clean, or move customer's vehicles of a higher value, i.e a valeter or mechanic. You can split indemnity from £10k upwards - eg £10k cover on your own vehicles but say £25k on your customers. Sometimes it's not any more to split your indemnity.

These are just a small selection of terms associated with motor trade insurance and are intended to give you a little more information when deciding the best policy for you.