Car Dealer Insurance
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Why Compare Car Dealer Insurance Quotes With SimplyQuote?
Running a car dealership can often give you sleepless nights, worrying about the financial loss should something happen at your business premises. Most times, you don’t have endless hours to scroll through insurance policies from multiple insurers, which results in staying with the same old insurance company year after year.
Sound familiar?
Finding cheaper car dealership insurance should provide peace of mind. And this is where SimplyQuote comes in.
We understand how stressful, time-consuming and downright annoying comparing quotes can be; that’s why the online comparison tool is designed to streamline the entire process from start to finish.
In just a few clicks, access multiple insurance cover policies from first-rate UK insurance providers. Finding the best deal can’t be simpler.
What Do You Need To Get A Quote?
As mentioned, we’ll need a bit of information from you before we can give you a list of suitable car dealer insurance quotes:
- Personal details – name, surname, UK address, contact number
- Business details – business address, company registration details, nature of your business (full-time or part-time)
- Vehicle details – Number of vehicles, make, model, number plate details
- Employee details (including drivers) – name, surname, ages, EU/UK drivers licences
- Policy details – Level of cover you’re interested in and any add-ons
Why Do You Need Car Dealer Insurance?
Insurance policies created for car dealerships can help your business stay afloat in the face of a crisis. This is because insurance helps protect you from financial losses if you are taken to court or a claim is made against you.
You can take out cover for your stock and business premises, ensuring that unexpected events like fire, floods, or vandalism won’t ruin your business, handing you a lifeline when things go wrong.
Whether you’re selling cars full-time as part of a franchise or selling second-hand cars on weekends, you need the right insurance cover for your motor trade business needs.
Looking for the cheap Car Dealer Insurance? Get a quote today!
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What Risks Does Car Dealer Insurance Cover?
Car dealer insurance covers numerous risks for motor traders, from road risk cover to employers’ liability insurance. Depending on your business needs, you can add or remove policies as you wish.
Let’s take a closer look at what risks motor dealer insurance covers:
- Road risk cover is one of the most common types of insurance for the motor trade industry. It enables you or your employees to operate vehicles that don’t belong to you, so your staff can drive any cars in your dealership. You may also want to check if your policy extends to trade plate cover if your business uses car trade plates.
- Garage stock cover ensures your valuable stock is protected against risks such as vandalism or theft. This means you can claim back the cost of stock if it is stolen or ruined. Usually, compensation will be presented at trade cost, rather than the value it would be sold for in a retail context. This cover is also known as vehicles at premises (VAP) insurance.
- Business premises cover is designed to protect your dealership or showroom in the event of fires, floods, vandalism and break-ins.
- Contents cover is much like your home insurance contents cover. It protects the interior contents of your business premises against accidental damage, theft or vandalism. Office equipment such as computer systems, printers and furniture are commonly covered within this policy.
- Business interruption cover is crucial for maintaining business continuity despite a substantial disruption. Business interruption cover will allow your business to continue paying staff and bills, even if you’re forced to close temporarily after an incident, by compensating for lost income.
- Equipment and tools cover covers the cost of specialist equipment, machinery and tools used by your business. This type of cover helps you replace or repair important and high-value items if they are lost, stolen, or damaged (e.g. industrial car cleaning machinery).
- Liability insurance can cover you for expensive legal fees and compensation that you could be required to pay by the courts.
Employers must take out employers’ liability insurance if they have more than one employee. Public liability cover protects you against third-party claims should a member of the general public sustain injuries while at your business premises or damage caused as a result of your day-to-day operations. Additionally, you can take out product liability insurance, which covers you if a product you sell is faulty and causes an accident.
While part-time motor traders may not require as much comprehensive cover as full-time traders do, you must have all the legal motor trade policies in place. Opt for specialist advice from your insurance broker to ensure you have the right cover for your business operations.
What is not covered by car dealer insurance?
- Personal belongings
- Goods in transit
- Uninsured/unnamed drivers
- Normal wear and tear of vehicles
- Costs incurred due to negligence (you left the dealership unlocked which resulted in a burglary)
- Damaged caused if you/your drivers drive vehicles under the influence of drugs or alcohol
What Levels Of Car Dealer Insurance Do Motor Traders Need?
Motor traders need two main motor trade policies to remain legally compliant:
- Road risks cover, as mentioned, allows you to drive vehicles you do not own (a.k.a the cars for sale). It is a legal requirement by UK law. You’ll need a minimum third-party level of road risk cover even if vehicles are only moved a short distance.
- Employers’ liability cover is a legal requirement if you employ more than one employee within your business. It protects you against any claims staff members may bring against you. This liability policy covers legal expenses should you need to go to court to settle the dispute.
What levels of road risk insurance cover are available in the UK?
There are three levels to choose from:
- Third-party only (TPO) – this is the minimum legal requirement in the UK. It covers third-party claims should someone or their property be damaged/injured at your business premises as a result of your business operations.
- Third-party fire and theft (TPFT) – this is one step above the TPO level, offering protection should your vehicles be damaged by fire or stolen.
- Fully comprehensive – covers TPO and TPFT with the addition of compensating you/your drivers for medical expenses incurred from an accident as well as covering repair costs to your own vehicles.
Knowing which policy you’re interested in, let’s take a look at what car dealer insurance costs next.
What Add-ons Are Available For Car Dealer Insurance?
Car dealers can add a few optional extras to their insurance policy, such as:
Legal expenses cover
This protects you and your business against legal disputes and will pay legal fees you might incur if you go to court or are in a legal battle with a third party.
Demonstration cover
This policy allows potential customers to test drive vehicles, offering protection should something happen when out on the road. This policy is also known as customer liability insurance.
Vehicle transportation cover
If you transport vehicles from one location to another – between multiple dealerships or to and from car auctions – this policy covers your stock vehicles against damage or theft while being transported.
Guaranteed Asset Protection (GAP) cover
GAP insurance is designed to cover the “gap” of what customers owe on their motor vehicle financing payments and the amount insurers are willing to pay out in the event the vehicle is written off or stolen.
However, you need to clarify this with your chosen insurance company as there are discussions that the Financial Conduct Authority (FCA) might ban these policies in the near future.
Personal accident cover
These policies cover you and your employers in the event of injury (or death) from a road accident while operating dealership vehicles.
Money cover
Money cover is a viable option if you accept cash payments at your dealership. It protects cash on your premises in case of theft. However, there are strict procedures to follow for insurers to pay you out, such as keeping cash takings stored in a secure, locked safe.
EU Cover
Let’s say your car dealership is based in Birmingham but some of your clientele reside in France – you’ll need EU cover when transporting and delivering these vehicles across the UK border. While not all dealerships need this type of cover, it’s worth considering if your business involves cross-border transactions or if you frequently transport vehicles outside the United Kingdom.
Voluntary excess
This cover gives you the option to increase your voluntary excess (a.k.a the amount you pay when making a claim) in exchange for lower excess payments.
How Can You Get Cheaper Car Dealer Insurance Rates?
Basic car dealership insurance starts from as little as £39.80 per month. Insurance premiums vary between different UK insurers and are based on the types of vehicles you sell, your location and claims history.
How are car dealer insurance premiums calculated?
- Type of vehicles you sell (Land Rovers will have higher premiums when compared to Vauxhalls)
- The nature of your business (full-time vs part-time motor trader)
- Level of road risk cover (TPO, TPFT, comprehensive)
- Optional extras you want to include
- Your UK location (high-crime areas have higher premiums)
- How secure your vehicles and dealership is
- Age of employees who drive vehicles
- Claims history
But, there are ways to reduce the amount of money you spend on your dealer insurance policies.
How To Compare Car Dealer Insurance Quotes With SimplyQuote?
Here are nine handy tips to reduce your car dealer insurance premiums:
- Compare car sales insurance quotes from numerous insurers to ensure it’s the right insurance for your business needs
- Opt for annual payments as opposed to monthly instalments to avoid interest hikes
- Select named drivers to operate the vehicles in your dealership
- Hire experienced staff and drivers over the age of 25
- Providing an accurate valuation of your stock, premises, tools and equipment to keep your insurance costs down
- Only include the policy add-ons you need
- Ensure your dealership (and vehicles) are properly secured. Install CCTV cameras, burglar bars, security gates and alarm systems.
- Pay higher voluntary excess. This is the lump sum you pay if you make a claim.
- Keep claims to a minimum.
Frequently Asked Questions
Car dealer insurance is a specific type of motor trade insurance for anyone who owns or runs a new car showroom, second-hand car dealership or a similar vehicle sales business.
Insurance policies can range from large dealerships that employ many staff members and have a substantial amount of stock including high-priced vehicles, to part-time traders, self-employed solo car dealers or hobbyists who spend their spare time fixing up and selling used cars.
Yes, car dealers legally need car dealership insurance cover. At a minimum, you will need road risk insurance and employers’ liability cover. Public liability insurance is not a legal requirement but is highly recommended.
All car dealers need motor dealer insurance whether full- or part-time. Motor trade insurance policies are tailored to meet the needs of each business in the motor trade industry and offer protection should legal action or accidents occur.