Key considerations when taking out motor trade insurance

Whether you run a car dealership, a repair shop, or a vehicle delivery service, having the right insurance policy in place, tailored to the specific needs of your business, can make all the difference. With that in mind, here are four questions you should consider before taking out a new motor trade insurance policy.

1. What’s their expertise?

Motor trade insurance is a specialist field, and not all insurers have the depth of knowledge required to properly assess your risks and recommend suitable coverage for the unique challenges you face. Whether you’re handling multiple vehicles, dealing with customer cars, offering test drives or operating a mobile service, this expertise can help ensure that there are no gaps in your policy.

Our top tip: Ask your insurer about their experience in the motor trade industry. Do they have clients similar to your business? Can they provide case studies or testimonials?

2. Do they offer bespoke policies?

Every motor trade business is unique, and a one-size-fits-all approach to insurance can leave you exposed to unnecessary risks. Whether you need coverage for expensive stock vehicles, customers’ cars, or specific tools and equipment, your insurer should be able to customise your insurance package.

Our top tip: Ask about their approach to customisation. How will they assess your business? What factors do they consider when tailoring coverage to ensure it matches your operations?

3. What does their claims process look like?

Filing an insurance claim can be a stressful experience, especially if it involves a significant loss or disruption to your business. A good motor trade insurer will be there to guide you through the claims process, acting as your advocate with the insurance company and ensuring your claim is handled efficiently. They should be able to provide advice on gathering documentation, liaise with adjusters, and push for a swift resolution.

Our top tip: Inquire about their claims handling process. How involved are they once a claim is filed? Do they have a dedicated claims team, and how responsive are they in emergencies?

4. Are they fit for the modern age?

As technology evolves, so do the risks faced by motor trade businesses. With the rise of keyless vehicles, digital systems, and remote operations, it’s important to have an insurer who understands these emerging challenges and ensures your coverage is up to date.

Insurers should be able to offer cover associated with today's digital age. Risks including keyless car theft and cyber-attacks on digital systems. You should ensure protection is available against these newer vulnerabilities.

Our top tip: Ask how they address modern risks like keyless theft or cyber-related exposures. Do they offer specialised coverage for these issues? Can they ensure your policy keeps pace with rapid technological advancements in the motor trade industry?

Ultimately, the cover you choose will depend on your circumstances and the needs of your business. At NFU Mutual, we’ll take the time to understand these needs so that we can put together the right cover for you. We provide tailored guidance and services to help ensure risk is mitigated, opportunities are identified, and the future of your business stays on the right track. So, when it comes to protecting, preventing and, should the worst happen, claiming, you can always rely on us.

For more information on how NFU Mutual can help your motor trade business please contact your local NFU Mutual agency.