A motor trade insurance policy can be taken out by anyone who runs a business involving anything to do with cars, motorbikes and vans and involves things such as, buying and selling cars, repairing and servicing, valeting, running a garage etc. When used correctly they are excellent business tools, they allow people working on/with cars and other vehicles to move them around freely without excessive amounts of paper work.
Used incorrectly a trade policy can land you in a whole heap of legal and financial trouble and now police forces across the UK have been instructed to crack down on dealers who are misusing them; in this article Dan Potter looks at the terms of use for trade policies and the penalties imposed on those choosing not to abide by them.
Evidence from various sources suggests police are running national intelligence-led operations, in order to catch those violating the terms of their trade insurance. Drivers often believe that a trade policy is in place to cover a vehicle and therefore, any qualified driver may use it for trade purposes. Unfortunately this is often not the case, if the trader does not hold an open policy and you aren’t a named driver, you are breaking the law and liable for prosecution.
All trade policies have terms of use, they must state very clearly which cars can be driven on the policy and by who. Dealers should keep an up to date record featuring all information about cars they wish to insure and submit it to the Motor Insurance Database, this allows police to check information on exactly which cars are covered.
If you are deemed to be misusing a trade policy the penalty is just as severe as driving with no insurance, not only could you face vehicle seizure and 6 points on your license, you could be issued with a heavy fine.
In order to collect a vehicle that has been seized, you will need proof of insurance. All vehicles that are not claimed within 14 days can be crushed or sold, far from ideal if it happens to be a customer’s car.
If you are facing charges for misusing a motor traders policy and wish to seek legal advice, why not email one of our helpful team on info@cpcworldwide.co.uk? Simply start with a brief description of your case and leave it along with your personal contact information, this may be all our experts require to build the defence case you need.
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