Car Trader Insurance

A car trader, is a business that deals in the sale of new and/or used cars, and as a business cannot be covered by standard car insurance policies, as these are geared towards individual drivers rather than a business that owns an entire fleet of vehicles.

The risks a car insurance company takes on with a business selling cars are different and therefore several companies offer a specialist car trader insurance product; there are three different policies that come under this heading:

Road Risks – This policy will provide the car trader with insurance that covers any vehicles under their ownership, or sole custody whilst they are away from the main premises of the business.

Internal Risks – Covering the trader for liabilities that may occur whilst the vehicle stands on their business premises, but excludes ‘road risk’.

Combined Road and Internal – This will provide car trader insurance encompassing both on the road and internal risks.

Car trader insurance offers ‘blanket’ cover for the entire fleet rather than each individual car; you will be required to own at least 4-5 vehicles before being eligible, and these policies operate on a declaration basis, in that at pre agreed time intervals you will be required to declare the size of your fleet over a specified period of time.