The answer to the question is that it is possible to obtain insurance for someone else’s vehicle when you are in the business of trading vehicles through a motor trader insurance policy.
So, let us explore when this situation will occur and talk about insurances that exist for motor traders. You can learn more here at onesureinsurance.co.uk/motor-trader-insurance.
The Types of Businesses Needed to Insure Someone Else’s Vehicle
So, any business that handles cars is likely to need a motor trader policy. This could be a car showroom or auction house where cars are moved around for display and sale. Equally, it could be a mobile mechanic who is collecting cars from customers and then returning the car after they have repaired it. So, that extends to MOT testing stations, too.
It is invaluable to be able to juggle cars around. Like a shelf in a shop, a car showroom situation will only look fresh (unless you sell a lot of cars) if you continually adjust the display. This means that staff will need to be insured to drive vehicles that are not yet registered to anyone.
It is possible, though, because the business will have trade plates and a motor trader insurance policy that allows employees to drive the car without fear of damaging it and the unfortunate event becoming an expense of the company they work for.
Also, where customers are taken on test drives, the vehicle will then be going onto the public road and so you will need road risk insurance as a minimum.
What a Motor Trader Policy Offers
Motor trader policies will cover cars, vans, and other commercial vehicles. You will need to check that certain high-value models of cars are not excluded.
There is no doubt, in some insurance clauses, a policy to exclude sports cars so that there is not the temptation for staff members to take them out rather too frequently for a test drive. So, be sure to check that all the vehicles a company is trading in are insured by this kind of policy.
The motor trader policy’s purpose is to protect those with a full or part-time job who deal with cars as a profession. It is irrelevant whether the person obtaining the cover is a sole trader or director of a limited company. Hired employees can also be covered for damaged vehicles.
The motor trader insurance policy will, as a minimum, cover traders for road risk and then extend to a comprehensive-like compensation when it comes to the customer’s vehicle they are protecting.
Injury and death cover will be included in the motor trader policy for anything that happens with the vehicle as a result of business activities. It is possible to have just a third party, fire, and theft insurance but advisable to have a customers’ vehicle insured comprehensively unless a trader wants to end up footing the bill.
A customer would want to know that the cost of their vehicle is covered should anything happen to it, before handing it over to a garage. It is what would be expected of a reputable garage. But even at that, there are certain things you should never say to a car dealer.
It is worth mentioning about trade plates as these are used by those that will take out motor trader insurance. These plates will allow a member of staff or business owner to drive a customer’s vehicle without it being licensed to them. This is because it is only going to be for a temporary period and necessary to conduct business, whether it relates to sales or repairs.
It should be noted that trade plates should not be used on vehicles that are carrying any passengers for hire or reward, so generally are something you will see mechanics using to transport customers’ vehicles from A to B.
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So, apart from being able to obtain insurance for someone else’s vehicle, in case a business should damage it, a business employee or owner can also drive the vehicle without registering or taxing it to themself. This is the reason for using a trade plate. It is, however, motor trader insurance that allows for any damage to be compensated for.