What are the benefits of motor insurance?
Motor trade insurance sounds like a great deal. Who wouldn’t want a great deal that offers a lot of outstanding benefits? When it comes to trade insurance, it covers different aspects including vehicle servicing and sales, car valeters, car trade, breakdown service, motor mechanics and more.
Unlike in the past, more people are buying personal vehicles today. And if you ask if car insurance is important, the answer is yes. Without car insurance, you can’t drive your car around because it is illegal to drive a car without insurance. Motor insurance is important and offers several benefits.
Understanding car insurance and motor trade insurance
The regular vehicle insurance policy will cover you for driving your car or someone else’s, depending on the policy and coverage level. But motor trade insurance policy is designed for traders who own or work with many vehicles, including customer’s vehicles. If motor traders want to update insurance policy for each car, it would be a lot of hassle, which is why motor trade insurance is very important for car traders.
Levels of cover for motor trade insurance
When it comes to traders insurance, you’ve got two options which include Road Risk Only and Motor Trade Combined cover. The Road Risk Policy is designed for traders with minimal assets such as car salesman and mobile mechanics.
Three basic levels of motor trade insurance:
- TPO (Third Party Only): This type of motor insurance policy is just like normal insurance because it is the most basic level when it comes to motor trade insurance. It covers the third party alone, especially if you are involved in a motor crash deemed to be your fault. TPO is the most basic policy and the legal minimum available to motor traders.
- TPFT (Third Party Fire and Theft): While this policy covers the same thing as Third Party Only, it also cover both fire and theft.
- Comprehensive: This insurance policy includes the benefits offered by Third Party, Theft and Fire policy, as well as any damage to your vehicle whether you are at fault or not.
Some motor traders might need more than Road Risk Insurance to cover Liability insurance like traders who employ someone to help them with their business. That Liability cover will cover the employee too. Product Liability might also be good for a mobile mechanic operating from home in case one of the parts they fit for a customer is faulty and damage customer’s car as a result.
In summary, if you run a complex motor trade business, your motor trade insurance policy should also be complex. It means the more complex the business, the more complex the traders insurance so that you can ensure the insurance policy covers damage to vehicles, theft and road crash.
Benefits of traders insurance
Several benefits come with traders insurance. If you use vehicles like cars and vans, as part of your business, insuring them under a motor trade insurance policy is vital. Whether you are with a van or you have a business with a fleet of cars that your employees used on daily basis, you need the right insurance policy.
If you are not insured with the right insurance policy and the unexpected happens, you and your business may land in a financial mess. So it is best to have the right insurance policy in place to avoid any problem. Here are the benefits:
- It will be responsible for your car replacement if the car is stolen
- Less administration
- Better coverage
- Ability to drive any vehicle with coverage
- Tailored solutions and saving on domestic insurance
Most people use expensive cars nowadays. The question is; could you afford the same type of car that was stolen from you if not recovered? If your answer is no, then you might want to consider comprehensive coverage. Also, if you’ve financed the vehicle, your lender might request that you get a policy.
When it comes to motor trade insurance, expect less government. At times, it is better to pay a supplier monthly, semi-annually or annually to avoid a lot of paperwork. Most motor traders don’t like a lot of paperwork because they are usually technical. Most of them are happy with lesser paperwork. Consolidating different policies will help reduce paperwork which is also good for accountants. With the opportunity to pay annually, you will only receive notification once a year.
Trader insurance provides better coverage than the normal vehicle insurance because it is comprehensive. As a client, you can get coverage for all the cars you use in your business. This is a vital pointer for you. Without valuables, your business is nothing, but this insurance policy will ensure your business’s valuables are under protection. Whether it is your IT equipment, accidental money loss during accidents or any damage, everything is guarded by traders insurance.
Getting the personal vehicle insurance scheme would ensure you and the vehicle are insured. But getting motor trade insurance policy would ensure the driver is insured individually which means no matter the car you drive for motor trading purposes, you are fully covered. In case of the normal personal insurance policies, you (driver) would only be covered when you drive the car mentioned in the policy. That means traders insurance is far better than the regular insurance.
With traders insurance, you can ask your insurance provider to customize the policy based on your business’s requirements. The best thing about this type of insurance policy is that it caters to any size of motor trading business. With motor trade insurance, you can add your partner or spouse to the scheme at a fair cost. This means you can save a lot of money on domestic insurance coverage policies.
Motor trade claims
If you are in the motor trade and need to make a claim, you should contact your insurer.
The peace of mind you have knowing your company and business cars are insured against the unexpected will help you to concentrate on your business and increase your bottom line. If you have motor trade insurance, you have nothing to worry about because any unexpected issue will not affect your ability to run your business.