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Motor Trade Insurance
If you work in the motor trade industry it's very likely that you have a million different things to do every day to keep your company running smoothly. The last thing you want to be bothered by is choosing insurance. The price of motor trade insurance seems to go up every year even as your income doesn't. So it is natural you are not exactly exited when the time comes to sign insurance. Never the less, you know you need it, not just as a legal requirement, but because your industry has a lot of risk involved. Better be safe than sorry after all. In this article we are going to look at what insurance policy is relevant for you and how you can save money on your premium.
When it is time to purchase insurance most people don't want to waste either too much money or time. This is probably how you feel about motor trade insurance as well. But doing your research ahead of time will pay of in the end and save you the hassle of having to renegotiate the terms later on. Even if you are an experienced trader there may be things you are unaware of when it comes to insurance.
So with out wasting more of your time let us go straight to looking at what insurance that you can benefit from:
Motor Trade Insurance usually comes in three different packages: Third Party
Only, Third Party Fire and Theft and Combined Policy
. Some businesses also need Liability Insurance,
Third Party Only insurance is a legal requirement for your business if you are involved in any of the following:
- Buying and selling cars, motorcycles or any kind of vehicles.
- Doing repair of cars, motorcycles or other vehicles.
- Driving cars, vans or other vehicles on public roads.
- Tuning, fitting or modifying vehicles in any way.
- Restoring vintage and classic cars for commercial gain.
- Operating a garage or repair shop.
Third party only insurance is the most basic form of insurance you can get. You are only protected against any damage you do to a third parties property, vehicle, personal belongings or personal injury. You are not covered for any kind of damage done to your own vehicles or personal injury to yourself or your employees.
Third Party Fire and Theft has the same basic coverage as third party only, but also covers any financial loss incurred due to fire, and theft of your vehicles, as long as the incident happened during doing business as a motor trader. This means you will have to lock up your vehicles in a space owned by your company.
Comprehensive Policy is the most popular type of motor trade insurance because it covers most risks in your trade of work. You get all the same types of coverage as Third Party Fire and Theft but also coverage for a number of other accidents. Basically if your vehicles gets damaged in any way as a result of doing business, then comprehensive policy has you covered for everything including repairs and replacement vehicle in some cases.
Apart from the above insurance policies you will also need liability insurance if you fall under one of the the following categories.
is needed for the motor trader:
- If you invite people to your property, garage or shop and any other business premises, to conduct business or interact with customers in any way related to your businesses. As you can tell this definition is very broad, so basically if customers enter your property during the day, then you need liability insurance.
- If you employ people in the motor trade business.
- If you repair, service or restore any kind of vehicles.
- If you buy or supply parts of any kind.
Chances are you will need liability insurance if you do motor trade business, so check up on the requirements.
As with all other kinds of insurance there are some things to do before deciding on where to buy insurance.
First of you, if you already have motor trade insurance, you should consider if your insurance broker is the best choice for you. Loyalty is good, but do you get something back? If you have been a loyal customer for some time you should expect some preferential treatment.
Does your broker give you relevant advice when you ask and even when you don't ask? An insurance broker should really work with you and not against you. Do they advice you on how you can reduce your premium payments?