Motor Trade Insurance FAQ

At Ace Insurance we source the best fit policy for you based on your insurance needs. However, at the same time, we understand that our customers will have questions every now and again, which is why we have put together this handy FAQ section.

Here you will find answers to some of the most common questions asked about motor trade insurance and motor trade insurance policies. If you can’t find what you need here, make sure you give one of insurance advisors a call on 01527 830 441 and they will be more than happy to help!

Do I need a Motor Trade Insurance policy?

If you have customers’ vehicles in your care, custody and/or control for the purpose of carrying out your business in the motor trade, then you probably need a motor trade insurance (aka road risks) policy. This will allow you to road test, collect or deliver a vehicle prior to and immediately after repair, service, valeting, an MOT test or other work.

If you are involved in vehicle sales, our motor trade insurance policies can cover; stock of vehicles, collection and/or delivery immediately after purchase or immediately prior to sale. It can also cover accompanied demonstration use.

If you work in the motor trade and you need to use or drive your vehicles on a public highway, it is a legal requirement that you have at least third party cover. Without a minimum of third party motor trade insurance in place, you will not be trading legally.

What types of vehicles can be covered under my Motor Trade Insurance policy?

Generally, all vehicles must be the property of the policyholder or spouse – most insurers cannot cover vehicles owned by an employee. There may also be certain restrictions concerning the types of vehicles that can be covered and the extent of cover available for certain vehicles.

When purchasing a policy, please make a note of any restrictions mentioned in your quotes. If you have already bought a policy through Ace Insurance, your policy schedule should include details concerning restricted vehicles.

Why do I need to provide copies of Driving Licences?

The issue of fraud in the motor insurance market is well publicised. One way that insurers can help protect you from the cost of this is by requesting copies of driving licences for all drivers insured on your policy. Please provide these promptly when requested to do so.

Are there any restrictions on how a vehicle is used when it is being driven under Motor Trade Insurance?

Certain restrictions often apply, for instance, vehicles must be used in accordance with the cover provided. This can be motor trade use only, social domestic pleasure and commuting or additional business use. The use provided will often be different for each driver. Your cover note or certificate of insurance will provide further details on this. One common restriction is that customers’ vehicles can only be driven for motor trade purposes – you cannot drive them for any other purpose.

Can you help me find cover for Part Time Motor Traders?

Yes, as long as your involvement in the motor trade is as a business, not as a hobby, our partners can probably provide you with motor trade insurance. They may also be able to provide cover for driving in connection with your main occupation, should you need this extension.

I work with motorcycles. Can you help me?

A number of our insurers can provide cover for motor traders working with motorcycles. They can also insure a motorbike owned by you for social domestic pleasure and commuting use. Depending on your age and the type of motorcycle, some restrictions may apply. Please ask one of the team for advice if you have any involvement with motorbikes.

How do I update the MID?

The majority of insurers these days will give direct access to the MID. For instructions for your specific insurer please refer to your MID Updates instructions when you receive your New Business / Renewal Documentation.

What is the difference between a Cover Note and Certificate of Motor Insurance?

A cover note is a temporary certificate of motor insurance. It has the same legal standing as a certificate of motor insurance, the only difference is the period for which it is issued. You will normally be issued a cover note when your policy first incepts. This generally happens when your insurance provider is waiting for you to provide certain supporting documentation such as proof of no claims bonus or copies of driving licences.

What types of Motor Trade Insurance can your Insurers offer?

Here at Ace, we specialise in helping customers find the right type of cover for you. There are many levels of cover, including:

Can I add another driver to my Motor Trade Insurance Policy?

Anyone named as a driver on your policy and who works with you in the motor trade can be covered. You can add additional drivers to your motor trade insurance policy, but you must contact your insurance provider to do so.