With the requirement to implement social distancing rules as a result of the current COVID-19 situation, motor garages will be unable to accompany customers when test driving a new vehicle. Unaccompanied demonstration is an additional extension to a motor trade policy and is generally reserved for more sizeable sales risks with high standard of risk management in place.
Marsh Commercial have therefore been in discussion with a panel of insurers to provide guidance in this area to support clients as this risk comes with obvious security and safety issues.
Many large franchise dealerships will already have this extension in place, and will be used to dealing with the checks and processes required to satisfy the insurer that they are taking the steps required to minimise any losses from providing unaccompanied demonstration cover. However, other motor traders could benefit from this facility during these unprecedented times. We have provided some general advice and guidance protocols below, which will need to be implemented to allow insurers to consider adding this extension to the policy:
- Pre-arranged test drives only, avoiding walk in customers
- Verified and double checked Driver’s Licence validations
- Multi ID verification
- Customers required to leave their own vehicle and keys with the garage
- Short time limits for test drives
- Specify approved test routes
- Vehicle to have very limited fuel, suitable for the test drive only, enabling vehicle tracing through petrol station CCTV if taken
- Where an employee would have previously accompanied in the vehicle, they accompany by following in a second vehicle
- Use of ‘off the shelf’ GPS tracking devices in vehicles to enable tracking
- Hygiene Protocols – clear management of increased risk of infection and contamination including thorough cleaning of vehicles internally and externally, along with accessories such as keys or Sat Navs, before and after each use
Any motor traders considering extending their existing policy will need to provide details to insurers of the measures they will implement to allow them to consider the request. If the measures taken are acceptable, underwriters will apply the appropriate policy terms and conditions to provide the extension.
Please be aware, inclusion of ‘Unaccompanied Demonstration’ cover is subject to insurer agreement on individual cases and there will be an additional premium charge for the addition of this extension.