Renewing motor trade insurance for showrooms with record sales

and highs not seen for over a decade in others, all of which should be taken into account when renewing motor trade insurance. February figures from the Society of Motor Manufacturers and Traders show a 12-year high in sales of new cars, with alternative fuels driving demand even higher.

In January 2017 alone, nearly 175,000 new cars were sold in UK showrooms, up nearly 3% over the previous year and the highest figure on record since 2005.

Registrations of alternative fuel vehicles, or AFVs, have risen by nearly 20% in the past year alone, and this category now accounts for more than one in 25 new vehicles sold nationwide.

Used cars are also hitting record highs, with an unprecedented 8.2 million sold in 2016, up nearly 7.5% over the previous year's total.

The final quarter of 2016 was the biggest on record with 1.8 million used cars sold, up 5.5% and an indicator that if anything, the growth is gathering pace when seasonally adjusted.

All of this presents a challenge for showrooms trying to capitalise on the growth opportunities in the market in recent years, which have exceeded many industry forecasts.

With more capital, many car traders may be investing in more stock, or higher-value vehicles, while the rising popularity of AFVs means a more varied mix of engine types on the forecourt too.

This should all be taken into account when renewing motor trade insurance, to ensure your policy covers you for sufficient value of stock - you don't want to risk hitting your policy limit if you fall victim to a large-scale theft or malicious act, or an accidental fire or similar incident.

Remember to allow for protection to staff and customers too, as any increase in employee numbers or greater number of customers on your premises at the same time may also need to be factored into your motor trade insurance renewal.

It is essential to protect current and future growth in this way, to make sure you receive an adequate payout in the event of an unavoidable insured loss, so review your cover limits regularly during a period of rapid expansion.

This might even mean contacting your insurer before your usual renewal date arrives, to arrange an expansion to your policy limits to account for any unusually high growth within the existing cover period.