Vehicle Sales Insurance
If you work in vehicle sales, you understand the importance of being properly insured. From the premises itself to the vehicles you sell, you need to be adequately covered to avoid the pitfalls that can come if a claim is made against you.
Go Motor Trader work with a panel of dedicated expert insurance brokers who understand the risks involved with running a car showroom. Whether you sell brand new or used cars, we’ll be able to secure you a competitive quote for your insurance.
What You Need to Know About Vehicle Sales Insurance
Motor trade insurance is a vital component of running a vehicle sales business. Features like road risk insurance and public liability cover can often come in incredibly handy in a job that could be unpredictable.
As is true with any driver on the road in the UK, you need a minimum level of cover in order to be within the law. There are three levels of cover to choose from, each offering something different. These three levels are:
Third Party Only
Third party only (TPO) is the lowest level of cover you must have by law. It will cover the cost of damages caused to a third party’s car if an accident occurs. However, the cost of repairs to your own car (i.e., the sales vehicle), will need to be covered by yourself or your business.
Third Party, Fire & Theft
Third party, fire & theft (TPFT) road risk insurance is a similar cover to TPO except if offers extra protection against fire and theft. It will also cover the damage caused to the car during the actual theft.
Fully Comprehensive
Most car dealers will opt for fully comprehensive motor trade insurance as covers a wide range of elements and bespoke policies can be designed to suit the specific needs of the busines. You can include things like liability cover for employees or members of the public, as well as insurance for tools and POS equipment.
Features of Vehicle Sales Insurance
As the owner of a car dealership, you understand the various events that occur that could result in a claim made against your business. Some of the most important features to include as part of your overall policy include:
Road Risk Insurance
Road risk insurance is a very important aspect of motor trade insurance for vehicle sales companies. It will cover the car during the time it is not on the premises (for example, when you are transporting a new car from the dealership to a customer’s house). Any time in which you are responsible for the safe transportation of the vehicle will be covered by road risk insurance, meaning that any damage that occurs can be paid for.
Premises Cover
Your premises contains your bread and butter in the form of expensive vehicles, without which your business wouldn’t exist. If the building is not protected by adequate insurance, you could lose a significant amount of money if a fire, flood, or break-in occurs. As a matter of safety and security, premises cover is highly recommended.
Public Liability Insurance
With so many members of the public coming in and out of your business premises, you will need to make sure that you are covered if they choose to take action against you. If a customer injures themselves on your premises, you will be liable to pay for their compensation or medical costs. Make sure you have yourself covered with public liability insurance.
Employers’ Liability Insurance
If you employ any number of staff members, you must have employers’ liability insurance by law. It offers the same level of protection as public liability but for your workers. If you do not have this in place but still employ people, you will be faced with a fine of up to £2500 per day. You must also display your insurance policy certificate on the premises.