Starting a new motor trade business is not a walk in the park and can be quite daunting, especially if you don’t have sufficient experience in the industry. The industry is diverse and includes businesses such as buying and selling vehicles, refurbishing old cars, and repairs among others. As such, different operators under this industry may face unique risks depending on the line of business in which they venture. It is for such reasons that you need to ensure the cover you get protects your business adequately. This article will help you to answer some of the important questions you need to answer about motor trade insurance before getting a policy.
What is Motor Trade Insurance and who needs it?
The cover is designed for business owners, customers and the employees alike operating in the motor trade industry for any motor-related damages. Motor trade insurance is meant for business owners who handle cars that don’t necessarily belong to them irrespective of whether they are in their own or other people’s premises.
This kind of cover suits a variety of businesses such as car dealers, repair shops, MOT testing stations, Vehicle accessory manufacturers, and any businesses offering valet parking among others. Some of these establishments are required by law to get a motor trade insurance cover. If you are not sure whether your business falls under this category, you can consult reputable insurance providers and consultants such as i4mt or research online from various sources. Even so, irrespective of the line your motor trade business falls into, take the time to study the different insurance options available to ensure the cover you get protects you adequately.
How does a Motor trade insurance differ from a standard car insurance?
Well, the confusion is understandable considering that both covers revolve around motor vehicles. However, there is a huge difference. A motor trade insurance policy covers your business as well as all the cars you own. Besides, it includes your business partner and spouse if they are named in the policy. Also, cars belonging to your customers are covered as long as they are on site or in transit depending on the plan. On the other hand, getting the standard car insurance would translate into getting a different policy for each car, which means paying a premium for each car individually. At the end of the day, a lot of paperwork is involved, and it would not cover your customer’s cars or any use concerning your business.
Why do you need a Motor Trade Insurance?
The main aim of this cover is to protect you and your business or say the company, from any risks you may encounter on the road. On the other hand, if you are required by law to have this insurance, it allows you to use public roads within the legal boundaries.
Are there any levels of Motor Trade Insurance?
Just like with the private car insurance, you can choose between three levels of coverage. They include the comprehensive Motor Trade Insurance, Third Party Fire and Theft Motor Trade Insurance, and Third Party Motor Trade Insurance. Take time to study the three levels paying attention to the premiums and the coverage offered. Also, some companies offer a part-time quote for those who operate their motor trade business part-time, or a combined motor trade insurance for a one size fits all policy. Depending on your business type and preference, choose the level that you feel covers you the best and also one that you can afford to raise the premiums.
What is covered under the Motor Trade Insurance?
The extent of coverage you get is dependent on the type of policy you get. For instance, you may opt to get a customized plan that gives you more coverage than what is offered by the insurance company. Nevertheless, most complete packages cover you against damage to all listed business vehicles and customer vehicles, theft of vehicles on site, damage to business premises, any damage to goods on transit, Customer and employee injuries, legal fees and loss incurred from buying a car from a person who is not the legal owner. The list is not exhaustive, and the coverage may also vary from one insurance company to another.
At the end of the day, what matters most is that you get the best deal for your business. Asking yourself the questions listed above is a great starting point to understand all the dynamics involved with Motor Trade Insurance.