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Are You Eligible For A Motor Trade Policy?

Jul 13th 2019 at 4:35 AM

For insurance purposes a motor trader is someone whose business deals with vehicles in a number of different capacities, some of these business occupations include but are not limited to:

  • Vehicle Sales – Used & New
  • Vehicle Repairer & Servicing
  • Vehicle Body Repairer & Servicing
  • Vehicle Electrical Repairer & Servicing
  • Vehicle Recovery
  • Vehicle Collection & Delivery
  • Vehicle Valeting & Steam Cleaners
  • Vehicle Window Tinting
  • Vehicle Tyre Fitter & Repairer
  • Vehicle Dismantler & Scraper
  • Vehicle Wrapper & Sign Writer
  • Vehicle Windscreen Fitter

The great thing about Cheapest Motor Trade Insurance Stockport UK policy is it takes into account your business as a whole. In other words, you don't have to just be selling cars, you can have a mixture of the above within your business split. For example, you could be doing 25% sales & 75% repairs or 33% sales, 33% window tinting & 34% recovery. You can mix it up however you like.

It is vital you make money from this occupation, if it is a hobby, and you only fix or sell a vehicle a couple of times a year you do not qualify for a motor trader’s policy. This is for business owners only who will or are looking to make money from trading.

You will also be required to deal with a certain number of cars per year, and this differs from insurance company to insurance company, and trade to trade. Your insurance broker should be able to discuss this with you if you’re a little worried you will not have enough business coming your way.

Are you still considered a motor trader if you do not have a premises? The good news is of course you are! You can trade from a premises, you can trade from home and you can be a mobile motor trader. You can even trade from home and store vehicles elsewhere, you just have to ensure you have informed your Commercial Insurance Brokers Stockport UK of this.

What about the types of vehicles you trade with? Does this affect your classification as a motor trader? Nope! You can have cars, vans, trucks, motorcycles and many other types of vehicles to make up your business portfolio. You just have to ensure you inform your broker of your exact breakdown as some vehicle types can affect your insurance quote.

What about the number of hours you spend trading does this affect your viability within the motor trade industry? You can spend 37 hours working as a motor trader and dedicate all your working hours to this trade, or you can spend 5 hours trading. You can have a secondary occupation, alongside this venture, secondary occupations can range from administration assistants to pilots, as long as you disclose exactly what it is you’re doing, your insurance broker will figure out the rest for you.

All in all, in order for an insurance company to classify you as a motor trader and offer you a motor trade policy, you must be making money from your trade and dealing with a certain number of vehicles per year.

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