Motor traders insurance

iphone4g

I know a young lad with motor trade insurance with road risk and he says that he is allowed drive any car he wants,he has several cars on the road and some are heavely modified and some are not.

I thaught all mods would have to be disclosed to company but he says that he is allowed to drive any car and could not be expected to ring the company every time he drives a modded car be it his or not.

He does work in the motor trade (mechanic).What is the law in this area and what are your views on this?

rebel.ranter

A couple of the lads have Motor trade insurance, they get issued 3 insurance discs to display without registrations. They are only covered on cars up to a certain value.
It is normal for people working on the motor trade to have this kind of cover. The guys I know that have the cover are in the trade & any car they drive as their own normally only hangs around for a month or two, that is probably what your acquaintance will also do.
The cars still have to be taxed & NCTd to be road legal.

Henry Ford III

In the case of motor traders cover no specified cars are named, so cover is open to any/every car, modified or not. No disclosure is necessary.

However in the event of a claim a trade value only would be paid out. 3rd party cover is as normal.

R.O.R

I'm covered by our company trade policy, as long as what I'm driving is connected with our business. Anything owned by us is automatically covered when I'm driving, and anything I'm test driving which is owned by a manufacturer / importer.

I'm not aware of any maximum value restriction on the policy. If there is one it would have to be circa €100,000 which is around the most expensive car we sell within the group.

oldyouth

Motor Trade policies are designed to let you drive any vehicle under your custody or control for use in connection with your business as a Motor Trader, as well as Social Domestic & Pleasure.

A few areas of caution though. Policyholders have the option to restrict named drivers to Business Use only, so an employers policy may not allow you drive after hours.
Secondly, a named driver cannot drive a vehicle registered in their name under the policy
Finally, an application for Motor Trade insurance will ask the question if you possess or intend to work on sports or high performance vehicles. This is a disclosure requirement of a material fact and may have consequences if answered wrongly

Nevermind_

I've been lucky enough to drive under one of these policies since I was 17.
Basically I can drive ANY car as long as I have the owners permission and I am insured comprehensively.
It doesnt matter who its registered to or how big the engine or how modified it is. ( i have driven several exotic cars under this insurance)
Also if someone drives a car I am in possession of, they are insured (under my insurance) as long as I am in the passenger seat. (basically to cover test drives).
Oldyouth said;
"Secondly, a named driver cannot drive a vehicle registered in their name under the policy"
I've never come across this clause before and it definitely isnt mentioned on my policy, but i have heard that insurance companies are tightening up this type of insurance with new clauses inserted for new policy applicants

iphone4g

Thanks for the replies