Motor trade insurance is aimed specifically at those involved in different aspects of the motor trade. It's highly specialized insurance and as such, there are different types of motor trade insurance aimed at different facets of the business. There are two basic types of motor trade insurance. One is aimed at those involved in the repair of motor vehicles and the other, often called Road Risk, is for those who run breakdown trucks and other work that takes them on the road.
Repair insurance is for garages such as those that offer services from MOT to body work. This doesn't cover every aspect of the motor trade, but merely one aspect of it. There's much less driving involved for those in vehicle repair. All that's usually involved is moving vehicles around and this cuts down on the possibility of damage.
On the other hand, most of the mechanics will do the driving, so the coverage has to extend to all the employees of the business. The only exception to this will be if the business owner opts for restricted driving, under which only certain designated people can drive. This will include road tests, too.
Selling cars, whether new or second hand, is another part of the motor trade and requires motor trade insurance. It will fall more under the road risk category, as there will be test driving involved. If the cars involved are performance vehicles, the premium will be higher simply because of the cost of the vehicles.
For those who sell secondhand vehicles, motor trade operations are only one aspect of the business. It's important to note that any motor trade insurance you have might not cover you for vehicle use in your other areas of business. It's best to be aware of this beforehand and either have your policy extended or obtain a separate policy.
Some categories of the motor trade are deemed more dangerous than others and warrant special insurance. These will include those driving breakdown trucks or those who are involved in vehicle salvage. Inevitably, these particular jobs will involve a larger premium to obtain the insurance. If you're involved in these areas of the motor trade and don't disclose it, your policy could become null and void if the truth is discovered later. In most instances, a road risk policy won't cover vehicles kept at places of business. You'll need an extension on the policy for this.
The standard excess or deductible for a motor trade insurance policy is £250. Individuals can opt to have a higher excess which can result in lower premiums.
There are differences in coverage between domestic insurance policies and motor trade insurance. The latter won't offer items like courtesy cars or coverage for damage to the windshield. Likewise, the no-claims bonus won't be protected. This will even apply to comprehensive coverage. Insurers will also exclude certain vehicles. You'll need to check with a specific insurer to know exactly what isn't covered under your own motor trade insurance policy.