Customers vehicle insurance – Motor Trade
So what vehicles do I get to drive then?
Customers Vehicle Insurance on a motor trade combined policy will allow you to drive any motor vehicle in your custody or control in connection with your motor trade business, subject to your policy terms & conditions.
But, not everything is quite as simple as it sounds.
For many, they think having motor trade insurance entitles them to drive absolutely anything at any time without restriction. This is wrong.
This is wrong because you can only drive bona-fide customers vehicles in your custody or control for motor trade purposes, therefore, if you were to go shopping, on holiday in a customers vehicle then strictly speaking this wouldn’t be covered.
If you have a road risks only policy (example only as we don’t insure Road Risks Only), firstly you are likely to be restricted to driving up to a certain value per vehicle, secondly, you will not have the type of cover whilst in or around trade premises as most road risks only policies would exclude this cover. Note however that certain insurers may allow you to purchase this cover back in.
Not so Black or White
A potential grey area for road risks policies is where Road Traffic Act starts & ends, to avoid this many road risks only insurers apply quarter of a mile exclusion or similar to their policy. They may also call it vicinity or they may just have a wording that excludes premises, these can sometimes be rather woolly. What these mean though is that the customers vehicle will not be covered (other than for third party risks ie, loss damage or injury caused by the vehicle) if parked within that area whilst in your custody or control, which would leave you rather exposed.
At Real Automotive, we ensure our clients are aware of this & ensure they have the appropriate advice & cover in place to meet their exposures.
Please also remember though that if you have Third Fire & Theft cover or Third Party only, this doesn’t just apply to your vehicles but also whilst driving your customer’s vehicles, which means there would be no cover for any damage that you did to that vehicle.
But you have Comprehensive Insurance Cover
This actually makes no difference to where the vehicle has or has not got cover. All this means is that in the event of damage to the vehicle your motor trade insurance policy will pick up the costs of the repair, that’s all.
Looking for Customers Vehicle Insurance?
Let us look at your requirements for this type of cover, being specialist brokers to the sector we have instant access to all the motor trade insurance markets, we provide fast and competitive quotes tailored to your needs.
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