Motor Trade Insurance

1. What is the MID?

   The MID is the Motor Insurance Database, which is maintained by the MIB (Motor Insurance Bureau).  As part of Continuous Insurance Enforcement (CIE) laws, taxed vehicles that have not been declared SORN need to be added to the MID.

2. Do I have to add all my vehicles on to the MID?

   You need to add all vehicles to the MID that are covered on your motor trade insurance policy.  You also need to add trade plates that you own.  The official advice from the MIB is that you should add to the MID “All permanent vehicles (i.e. vehicles registered to, owned by, or leased to you) and any vehicles whose use is regularly covered by the policy (e.g. employees’ vehicles)”, and “Temporary vehicles such as courtesy or short term hire vehicles”. It is not necessary to add untaxed stock vehicles, but if you are in any doubt, add them to the MID anyway – there is no harm

3. How much time do I have to add a vehicle to the MID?

   Historically, motor traders were given 14 days to add vehicles to the MID, but the current advice is that any vehicles you wish to include on your motor trade policy should be registered on the MID “immediately”.  This means as soon as you can possibly add them to the MID, you should do so.  If you don’t add your vehicle to the MID, you run the risk of being stopped by police while you (or another policyholder) is driving it, and the possibility of therefore having the vehicle seized.

4. How can I add or remove vehicles from the MID?

   A number of insurers now give you access to an online portal, where you can add or remove vehicles from the MID yourself.  This is the quickest and most efficient process to ensure that your vehicles are added to the MID in a timely manner. When you take out your motor trade insurance through Bollington, we will supply you with the procedure that your insurer recommends as part of your policy welcome pack. Remember, it is just as important to remove vehicles in a timely manner from the MID as it is to add them.  If you sell a vehicle and it is involved in an accident, you could be liable if the vehicle is listed on your motor trade insurance policy on the MID.

5. Will you add vehicles to the MID for me?

   Yes, we can do this for you.  There is a nominal charge for doing this each year on your policy, should you wish for us to add or remove vehicles from the MID.  Updates can be given via telephone or email.  Please tell us at the point that you renew your policy if you wish to take advantage of this service, and we will advise the fee for doing so.

6. What happens when I come to renew my policy? Do I need to tell my existing insurer, or my new insurer, my full list of vehicles again?

   It depends on the insurer what you need to do to ensure all the vehicles you need are listed on your motor trade insurance policy – and therefore, on the MID.  Your existing insurer may require a full list of vehicles when you renew your policy. If you are moving to a new insurer, you must supply them with a full list of vehicles for the MID.  They will advise on how this information should be given, and will provide you with further details on how to update the MID in future on your new motor trade policy.

7. Where can I find out further information on the MID?

   Visit www.mib.org.uk for further information and legal information on the MID.

Please note that these Frequently Asked Questions are not a substitute for the policy wording.

1. Am I insured to drive any car on a motor trade insurance policy?

   No - there are limitations and exclusions on policies, so you should not assume that you can drive any vehicle that you carry a driving licence to operate.  Some vehicles – particularly performance or high-value models, or imported vehicles – could be excluded, unless there are specific extensions on your policy to cover them.  You need to let us know the type of vehicles you will be driving and/or trading in order for us to ensure you are adequately covered on your insurance.

2. Who is covered to drive on a motor trade policy?

   Drivers that are named on your policy are covered for motor trade use.  It is not the case that any driver can drive vehicles on your policy. There are also restrictions to cover – specifically, you can only drive a customer’s vehicle for motor trade use.  In certain cases, you can drive a vehicle that you own for social domestic and pleasure use, or for additional business use (e.g. if you work as a part-time motor trader and have a van that you use in conjunction with your work as a builder). You can also take out accompanied demonstration cover, which will allow a customer to test drive a vehicle in your possession, as long as somebody named on your motor trade policy is there to accompany them.

3. Why do I need motor trade insurance?

   If you conduct business in any area of the motor trade, you will need to obtain insurance. Personal car insurance will not cover you if you are involved in an accident while driving a customer’s vehicle, for example, or when driving a vehicle home from an auction that you have purchased and intend to sell. If you are carrying out work in the motor trade then, as a minimum, you will need road risks insurance to drive vehicles as part of your motor trade activities. If you have business premises (i.e. you don’t operate your business from your home address), then you should consider traders combined cover.

4. What is the difference between road risks and traders combined insurance?

   Road risks motor trade insurance will allow you to drive vehicles that are in your possession or custody and under your control, on a third party, third party fire and theft or comprehensive cover basis (although you will only get the trade value for any vehicle under a comprehensive motor trade insurance policy). However, if you have business premises, then this level of insurance alone will not be enough to cover your needs.  Traders combined insurance offers a range of different insurance products in one package.  You will automatically get public liability insurance with defective workmanship cover on a traders combined policy. Click here to find out more about the different products that we offer.

5. Why is motor trade insurance more expensive for under 25s?

   As is the case with private car insurance, insurers consider drivers under the age of 25 to be more of a risk to them.  This is because there is statistical evidence that younger drivers are more likely to be involved in road traffic accidents. Rather than setting up in business by yourself, you might want to consider joining another motor trade business initially, where you can not only build up experience, but also build your motor trade no claims bonus by driving safely and not being involved in accidents.

6. How can I save money on my motor trade insurance?

   There are a number of ways of potentially saving money on your insurance.  You could opt for a basic level of road risks cover – third-party only or third-party fire and theft – yet you might be surprised to find that comprehensive cover isn’t necessarily a great deal more expensive. You could also opt to raise your excess – i.e. the amount you would need to pay in the event of a claim before your insurer starts to settle the cost.  Again, this might not represent a huge saving, but it could help to shave a few pounds from your premium. Keep the number of drivers on your policy to a minimum.  The more drivers, the greater the time spent on the road by your business might be, and the more individual risk factors come into play for insurers. Only take out the insurance cover that you actually need.  Ensure the level of indemnity – the amount your stock of vehicles is covered for – is appropriate, and not excessive for your business. Dependent on the insurer, it might also be possible to mirror your private car no claims bonus on your motor trade policy.  Ask us about how this works, and whether it is possible for you to do this to keep costs down if you have no previous motor trade no claims discount. The important thing is not necessarily to get the cheapest insurance – it’s to make sure that you are properly covered.  You don’t want to spend thousands of pounds putting something right when you find out your insurance isn’t going to cover you – insurance is your safety net, and it’s worth spending a little more to get the right cover for your business.

7. How many vehicles must I buy and sell to be a part-time motor trader?

   You need to be actively trading vehicles and showing that you make a profit from the activity to be eligible for motor trade insurance.  You don’t need to trade huge volumes of vehicles, but insurers will be looking for more than just a handful of cars to be bought and sold during the course of any year that your policy runs.  If you’re in any doubt, please call us to discuss your requirements.

8. I just fix cars at home – do I need motor trade insurance?

   Yes, you do.  If you fix other people’s vehicles to make a profit – rather than as a hobby for your own personal benefit, using vehicles that you personally own – then you need to make sure that you have adequate insurance to drive the vehicles.  Even if it’s just down the road and back, to test your repairs, you still need cover while the vehicle is on the road.  You will also need cover for the storage of customers’ vehicles on your premises, which is automatically included in a road risks policy if you work from home. There are optional covers available to protect you (such as public liability and defective workmanship cover, for example), although most mechanics working from home would likely only take out road risks cover to keep the cost of insurance down.  It is unlikely that you will be sued for an incident involving a member of the public, or for not doing a job properly, but it might give you peace of mind to be covered against such an eventuality.  Talk to us to discuss your options – we’re happy to offer advice about the insurance that suits your needs.

9. Are there restrictions on vehicles that can be covered?

   Yes, there are restrictions specified in your policy.  In particular, vehicles which are imported, of particularly high value, or high-performance vehicles may be excluded from your policy.  Please talk to us if you are considering trading in vehicles that might not fit the standard insurance criteria – it is possible to get extensions to drive particular vehicles on your policy with certain insurers.

10. Do you offer a range of motor trade insurance quotations, or are you tied to one insurer?

    We have access to a wide range of insurance companies, so we are able to offer insurance with the company that best fits your needs in terms of cover and price.

Please note that these Frequently Asked Questions are not a substitute for the policy wording.

1. Making a motor claim: How do I report a new claim?

   By calling our Motor Claims team on 0800 195 4905 To ensure that your claim is dealt with as effectively and efficiently as possible, it is important to report your claim as soon after the accident as possible, and within 48 hours of the incident.

2. Who will arrange recovery of my vehicle?

   Depending on your choice from the options available to you, either your Insurer or our approved repairer will recover your vehicle. This will be either to an approved repairer or a place of free storage, depending on the amount of damage caused to your vehicle.

3. Who will arrange repairs to my vehicle?

   Whoever appoints the repairer (i.e. you, your Insurer, or our Motor Claims), an estimate will need to be prepared and sent through to the Insurer for them to authorise the repair costs.

4. Can I use my own garage for repairs?

   Yes, you can use your own repairer. However, by using the Insurer or our repairer, the claims repairs are authorised and carried out quicker.

5. What happens if my vehicle is still under the Manufacturer’s Warranty?

   Our Motor Claims team and the Insurers have access to dealer-approved repairers. These bodyshops carry out repairs to manufacturers’ specifications so as not to affect Manufacturers’ Warranties. All repairs are generally guaranteed for 5 years.

6. How long will it take to repair my vehicle?

   We understand how important it is for your vehicle to be kept on the road. Each claim is different, and once the repair estimate has been authorised by your insurer, the repairer will be in contact with you within 24 hours to arrange repairs. Our Motor Claims team will keep you informed of your vehicle repairs’ progress. Our dedicated team liaise direct with the approved repairers and insurers to ensure no unnecessary delays occur. Repairs are subject to the parts being available and the garage being able to book your vehicle in.

7. Can I have a replacement vehicle whilst my vehicle is being repaired?

   We will endeavour to provide a like-for-like replacement vehicle. We will discuss with you your specific requirements and your replacement vehicle entitlement.

8. What happens if the repairs are below my policy excess?

   You would be expected to pay the garage in full for the repairs if you are claiming via your insurer. Where the incident is not your fault and there is a third party from which to recover your costs from, we will assist you to do so providing you have purchased our Motor Legal Protection cover.

9. Do I still have to pay my excess if the accident was not my fault?

   Not if you are claiming via the Third Party insurer. If you are claiming via your comprehensive insurance policy you would pay the excess and we would then fully recover this cost for you.

10. Can I claim directly from the other party for an accident which was not my fault?

    Yes, this is known as claiming via the Third Party.

11. How will my policy be affected by a fault/non-fault claim?

    • Where you are at fault for an incident, your no claims bonus will be affected unless you have purchased Protected No Claims Discount.
    • Where you are not at fault and there is a third party to recover your claims costs from, then your no claims discount will be unaffected. However, this is subject to your Insurer agreeing with the third party’s insurer that you are not responsible for the incident.
    • Where you are comprehensively insured, your Insurer will reduce your no claims discount until they have recovered their costs.
    • Where your claim has been reported to Insurers for information only because you are claiming direct from the third party/insurers, your insurer’s claims file will remain open until they have agreed that the incident is not your fault.

    Once your insurers have been provided with sufficient evidence that the third party insurers have accepted their insured is at fault they will close their file and your no claims discount will not be affected.

12. What can I do if Insurers tell me my vehicle is not repairable and I don’t agree with their valuation or decision?

    We will discuss with you why you don’t agree, and ask you to provide examples of vehicles being sold privately that are as close to your vehicle as possible i.e. same age, make, model and of similar mileage. They will then negotiate with Insurers on your behalf to reach an amicable settlement.

13. What happens if I am not happy with the quality of the repairs?

    Our approved repairers comply with PAS 125 which is the industry agreed technical specification of vehicle body repair. It provides body-shops with the processes and procedures directly related to the safe repair of accident damaged vehicles. The repairs are guaranteed for 5 years but if a repair is substandard, we will always look to assist you and rectify the repairs with the repairer. If the repairs have been instructed from your own insurer, then we would report your concerns to your Insurer for them to investigate with their repairer.

14. Can I claim for additional costs not covered under my insurance policy?

    Yes, our Motor Claims team are here to assist you by providing you with a service to ensure you receive recompense for what you are legally entitled to.

15. What does “Subrogation” mean?

    When you enter into a contract with an Insurer, this is a policy condition which assists the Insurer in recovering any costs where there is a known third party who is responsible for the incident. In essence, the Insurer stands in the place of you to recover their outlay in respect of a claim made against the Insurance policy. We will do this when you have purchased our Motor Legal Protection policy, which means we have the right to pursue the Third Party for damages on your behalf.

16. What should we do if we receive a call from another party’s Insurer?

    Following an accident, you may receive calls from other companies offering vehicle hire and repair services. Our Motor Claims team works in association with Action Assistance and we will always keep you informed of any authorised companies that will contact you and when.

17. I have been injured as a result of a road traffic accident and had unpaid time off work, can I be compensated for this?

    If you have suffered an injury from an accident that wasn’t your fault and you have purchased our Motor Legal Protection policy, we can provide you with access to independent medical and legal professionals. They specialise in road traffic accident compensation recovery and they will discuss your entitlement with you on an individual basis, in order provide you with the relevant assistance.

Please note that these Frequently Asked Questions are not a substitute for the policy wording.