Are you looking into obtaining a new motor trade insurance policy for your business, or, perhaps, renewing an old one? You might be wondering why you need insurance and what the key aspects of cover are.
While all motor trade businesses will not receive exactly the same kind of policy, there are some particular features of insurance that almost every policy has.
Knowing some of the key facts about motor trade insurance is a good starting point before calling a broker. Then, after a brief chat with the experts, you can get a number of top quality insurance quotes that offer the perfect protection for the specific needs of your business.
So what are the key facts about motor trade insurance?
1) Motor trade insurance is usually available under two main categories
Depending on the type of business you have and the daily services you provide to customers, you will fall under one of two categories for motor trade insurance: Road risks cover or trade combined.
For the most part, road risk cover protects part-time businesses and those without workplace premises that are solely for business. Traders combined is usually for larger companies that work on premises and employ a number of staff.
However, understanding the line between both is often difficult to understand. Giving a broker a detailed description of your business will help in getting the cover that is right for your business.
2) The best motor trade insurance isn’t always the cheapest
When looking for insurance, it is likely your first instinct will be to look for the cheapest cover available.
However, motor traders are advised to opt for a policy that is right for their business rather than purchasing cover that seems too good to be true.
In most cases, finding motor trade insurance at an unbelievably low price could land your business in hot water. Ghost brokers and fraudulent companies looking to scam you out of money often offer dirt-cheap policies.
It could be that they add your vehicle(s) to the Motor Insurance Database (MID) for a few days, only to remove it (them) shortly after. In other instances, the trader might just take your money without any hint of cover given at all.
Sometimes, paying a little bit extra is advised as the added protection over the duration of your policy might save you more money in the long-term.
3) Having motor trade insurance does not cover you when driving any car
Many people believe that having a motor trade insurance policy allows you to drive any car you like, but this is not really the case.
While you might be covered for driving vehicles that are under your protection during work, that doesn’t mean you can get behind the wheel of any car.
For example, you might be covered for driving a vehicle out of the garage and onto the driveway, or on the occasion you need to deliver it to the customer. However, you will not be covered in situations like taking the car to the shops for personal errands or driving a friend’s vehicle.
Motor trade insurance covers the vehicle, not the driver. As long as the car is used solely for business reasons, you will be protected. Furthermore, only staff listed on the insurance policy are able to drive the cars under the care of the business.
4) It’s not just vehicles that are protected under motor trade insurance
Depending on the insurer, there could be a whole range of things that can be covered by your policy.
For example, insurers might offer added protection for some of the valuable tools and equipment you use daily. They might also offer premises insurance and a few could provide cover for lost earnings due to accident or illness.
It’s worth asking a motor trade insurance broker about the extra cover you could receive as part of your policy.
For part-time traders, you could even get vehicle cover for the other business you run. Traders such as builders, plumbers and electricians, can often receive this added protection.
Above all, understanding motor trade insurance is vital, whether you are looking for a policy or already have one. Your business needs protection; so making the most of any policy is definitely advised.