Ask the expert: Are vehicles on a trailer covered by your motor trade policy?

How goods in transit cover works

Ask the expert: Are vehicles on a trailer covered by your motor trade policy?
Image: Bigstock.

Understanding the ins and outs of motor trade insurance can sometimes seem tricky. Jem Emirali has specialised in this industry for over 12 years and heads up the motor trade division at Aston Lark, one of the largest independent brokers in the UK.

Here, he shares his expert answers to commonly asked insurance questions to help motor traders keep their businesses protected. This time, he discusses whether vehicles on a trailer are automatically insured.

Most motor traders at some point will be tasked with transporting a vehicle.

Whether it’s recovery, collecting a customer’s car, dropping it back again, or carrying vehicles that you’ve bought at auction back to your premises or storage facility, there are all sorts of circumstances in which you may need to move a vehicle in your line of work.

But it’s a mistake to presume that a vehicle on a trailer is automatically covered.

I’ve spoken to a number of clients who believe that what’s on the trailer is insured simply because the vehicle they are driving is.

That’s not actually the case – and this misunderstanding could cost you.

From among the numerous leading motor trade insurers we use, I can name only one insurer that provides Goods In Transit cover automatically within their policy wording.

This means there are potentially significant numbers of motor traders who regularly collect, deliver or recover vehicles while unaware that if the vehicle on the trailer falls off or gets damaged in an accident, it may not be covered.

From a broker’s perspective, I would always recommend discussing your full business occupation with your own broker or insurance provider.

They should be able to clarify the extent of your cover and advise whether you should be considering adding Goods In Transit to your policy.

During this chat, it’s important to be clear about the number of vehicles you may carry at the same time.

Many insurers restrict this number in their policy wording, unless they are notified beforehand, which could leave you once again exposed to risk.

Let me give you an example. Let’s say you’ve told your broker that you could be carrying £100,000 worth at any one time, but they might be unaware this value is spread across multiple vehicles.

So you could be transporting two, three or four cars while your policy states that only one vehicle can be carried on a trailer at any one time.

That’s why you should fully explain how many vehicles you are likely to carry, so your broker can source the right level of protection.

The good news is there are a number of thorough and reputable brokers out there who will do their research and ask the right questions about your motor trade business.

All I would say is, have a look at your policy wording to check you have Goods In Transit cover and confirm if it’s enough for your needs, so you don’t end up unknowingly at risk.

We’re always happy to discuss your policy, whether you’re a client or simply seeking some independent advice.

So if you want to find out more, please contact our friendly, specialist team on 0330 174 3482 or use our online form.

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