Vehicles, parts and business property
Motor Trade Stock Insurance
Understand how stock vehicles, parts, tyres, oils, tools and other motor trade property may be insured at premises, in storage and in transit.
Stock is not a single figure
A motor trader may hold vehicles for sale, customer parts, tyres, lubricants, accessories and specialist equipment. These items can be covered under different sections and may be subject to separate limits, security requirements and valuation methods.
The declared value should reflect the highest realistic amount at risk, not an average that could leave the business underinsured at busy periods.
Questions to Answer About Vehicle Stock
- What is the maximum value of stock vehicles?
- Are vehicles owned outright, financed or held on consignment?
- How much parts and tyre stock is held?
- Is property stored outside or away from the main premises?
- Are vehicles or parts transported between sites?
- What security operates outside business hours?
Avoiding underinsurance
Insufficient declared values can reduce a claim payment, even where the loss is below the policy limit. Review values regularly and after material changes.
Stock vehicles and road risks
Cover for physical damage at premises is not necessarily the same as cover while a stock vehicle is being driven. Review the property, road-risk and transit sections together to understand where each applies.