A rather typical question that is often asked by various business owners, it is actually pretty easy to figure out whether you need a motor trade cover or not. The simple way to do it is to ask yourself if you deal with customer vehicles in some form or another. If a vehicle you perform a work on does not belong to you and you are charging money for the work done, you need motor trade insurance. Let’s look closer at what exactly qualifies for such a cover.
According to One Sure Insurance, a repair business is one which, “You perform repairs on vehicles as a hobby or rather as a DIY home mechanic.”
You have made a living from repairing broken components or fixing your neighbours vehicle and now offer your service to anyone who walks through your front door. You sir are in the motor trade business!
Really does not matter whether you have a storefront or not. Whether you sell part time, two cars at a time or full-time with twenty plus cars all stacked up neatly on display – you are in the motor trade business. This possibly is the most easily recognizable among all motor trade works.
Garages for Servicing and MOTs
Any garage that services vehicles for a living or performs MOT certification naturally deals with road-legal vehicles. It is the first thing that comes to the mind of folks who hear the word motor trading for the first time among few others.
Recovery and Breakdown Firms
Yes, even those who simply run a tow-truck and drag back broke vehicles to the nearest garage need to take up the appropriate motor trading covers. They too deal with a vehicle that is not their own and charge money for the same.
This is a slightly tricky business. Unless a scrap yard deals with street legal vehicles and the scraping of the same, it cannot be deemed as motor trade. So, if a yard only takes domestic appliances and other metal objects for scraping but rejects cars and other vehicles then it cannot be deemed as motor trade.
Collector and Restorers
Those with a penchant for dealing with classic cars and vehicles, restoring them to their previous glory automatically engage in motor trade. It does not matter whether you simply collect cars for your private viewing or for demonstrations and showcasing.
Tyre Fitting Agencies
A simple job but one that is integral to the functioning of a vehicle. Whether you only engage in fixing leaks, fitting new wheels and tyres or aligning them, polishing and cleaning – your business needs the right cover to operate legally.
Basically, whenever a customer leaves their vehicle with a business, the vehicle loses its protection from the owner’s private insurance. This is when motor trade cover kicks in and naturally the business becomes a part of the world of motor trading.