Obtaining motor trade insurance isn’t always a straightforward matter. First of all, you have to decide whether this type of policy is right for your specific circumstances. Then, if you come to the conclusion you do need this form of insurance, you need to figure out what level of cover you require and what exactly should be protected.
It’s not something that should be taken lightly, as too little cover will see you without adequate protection for the long-term, while spending too much on insurance you don’t need could leave you out of pocket.
Of course, you should also consider whether taking out motor trade insurance is the right product for you. If you have a full- or part-time business in the motor trade that is trading for profit, it is likely you will need cover. If you just want to drive multiple cars legally for your own personal needs, you might have to reconsider, as this is not the purpose of motor trade insurance.
The key word here is ‘trade’. Motor ‘trade’ insurance like this is intended for business purposes only.
Of course, as there is a distinction between private car insurance and motor trade insurance, businesses must be aware of the difference in cover between the two.
For example, with private car insurance, you might be used to a policy featuring windscreen cover, normally subject to a small excess. However, most motor trade insurance policies will not offer cover like this, so be sure to ask a broker what is covered under your policy; in some circumstances, additional cover can be purchased for an additional sum to give you the best insurance cover possible for your money.
You should also bear in mind that motor trade insurance will not cover the full book price of a vehicle. This is a point that should be especially noted by businesses involved in the buying and selling of vehicles.
If you cause damage to any vehicle that you are looking to trade, you will only be able to claim for the trade value.
Businesses must also make a decision about obtaining roads risks insurance or traders combined cover. This is not always clear-cut, as businesses have varying needs in accordance with the work that they carry out.
Because of this, it’s best to talk to a motor trade insurance broker, as they will be able to help you to determine the exact type of cover you require based on the specifics of your business. They might also be able to negotiate a better price for your cover once you’ve decided which suits best.
After deciding on the best option of the two, you then need to select the other features of cover you will need.
For example, if you have multiple members of staff, employers’ liability cover is essential to cover your workers.
If you welcome customers onto the working premises, public liability cover is also a must-have in order to protect your business should they become the victim of an accident—such as slipping on oil, or colliding with tools or machinery.
Do you own the premises you conduct business at? If so, you might want to seek out cover for it too.
Most insurers will ask a number of questions about the premises in order to get a clear picture about the specific location and circumstances. Your business location is likely to have a bearing on the cost of your insurance. However, it is important to make sure that you have the right insurance cover for your premises; if a business is located in a city centre, it might cost slightly more to insure than countryside premises, but your insurance will come into its own if you do find that you have to make a claim.
As you can probably tell, there are a lot of things to consider when taking out motor trade insurance. This only scratches the surface. This is why speaking to a broker is your best option to receive cover that is not only perfect for your unique business, but is also available at the right price.