Why Vehicle Delivery Insurance Is Essential For Trade

​If you make your income by transporting vehicles for customers, whether from auction houses, dealerships, or online platforms, insurance is one of the most important parts of running your business. Many newcomers to the motor trade assume their personal car insurance policy will be enough to cover them. Unfortunately, that isn’t the case, and relying on it could put you and your business at serious financial and legal risk.

This is why specialist vehicle delivery insurance, provided through a motor trade policy, is essential.

Why Personal Car Insurance Won’t Cover Vehicle Delivery

Standard car insurance is designed for private use, typically covering social, domestic, pleasure and commuting (SDP&C). It does not apply when you are driving a vehicle for trade purposes, such as collecting it from a seller, delivering it to a buyer, or moving it on behalf of a dealer.

If you were to use a personal policy for delivery work, any claims would likely be rejected. You could be held personally liable for damage to the vehicle, third-party claims, and even face legal penalties for uninsured driving. For anyone transporting vehicles professionally, a dedicated motor trade policy is the only way to be properly insured.

Road Risk Cover And Trade Plate Use

The foundation of any motor trade policy is road risk insurance, which makes it legal for you to drive vehicles that are not your own as part of your business. This includes moving cars that are untaxed or unregistered when using trade plates.

Trade plates themselves are issued under a trade licence and allow you to drive such vehicles without registering each one. However, it’s important to remember that trade plates do not come with insurance. They must be backed by a valid motor trade policy that lists the plates on the Motor Insurance Database (MID). This ensures that when you’re stopped by roadside enforcement or captured by Continuous Insurance Enforcement (CIE) cameras, your vehicle is shown as insured.

What Does Vehicle Collection And Delivery Insurance Include?

Specialist policies for collection and delivery agents can be tailored to the way you operate. Typically, policies only cover named drivers, which means you need to ensure anyone working for you is included.

Many traders also choose to extend their policy with features such as:

• Goods-in-transit cover: Protecting vehicles while they are being transported.
• Public liability insurance: Safeguarding you against claims from members of the public if an incident occurs during collection or delivery.
• Legal expenses cover: Helping with the costs of legal support if disputes arise.

These extras provide peace of mind, while also meeting the expectations of delivery contracts that may demand flexible indemnity levels of up to £ 250,000. We are also able to offer higher indemnity levels; however, those will be dealt on a case-by-case basis. For more information regarding this, please get in touch with one of the members of our team.

Building Protection Around Your Business

Whether you move a handful of vehicles each month or operate full-time as a trade plate driver, vehicle collection and delivery insurance is an essential part of protecting your business. It ensures that every journey you make, whether collecting a car from auction or delivering it to a customer’s home, is covered against risks that standard insurance will never include.

At Crowthorne, we help independent motor traders find cover that matches the way they work. With flexible policies and optional add-ons, you can safeguard your business, protect your reputation, and keep your operations running smoothly. Get in touch with us to find out more today.