While quoting prospective clients this week for motor trade insurance i have been asked what is demonstration cover and how does it work?

This can be added as an extension to most motor trade policies.  The cover provided extends the policy to allow the prospective purchaser of an insured vehicle to drive such vehicle before deciding on purchase, provided that such person;

1) Is not in the employment of the insured

2) Is not a member of the family of the insured or of any named driver

3) Is accompanied at all times by the insured or by any person named for Motor Trade use on the Certificate of motor insurance

4) Holds or has held a FULL United Kingdom driving licence to drive such a vehicle and is not disqualified from holding or obtaining such a licence

5) Observes, fulfils and is subject to the terms and conditions of this policy

Insurers usually apply a charge for this extension .

I hope this is of use to you whether you are a future buyer or seller of a vehicle.