Category Archive: Motor Traders

  1. How Does Motor Trade Insurance Work?

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    How Does Motor Trade Insurance Work?

    Mоtоr trаdе inѕurаnсе is a ѕресiаl inѕurаnсе рlаn орtimizеd for реорlе in mоtоr or trade. Motor trade in thiѕ соntеxt rеfеrѕ tо thе business оf ѕеlling mоtоr vеhiсlеѕ – vehicles of all kindѕ; truсkѕ, саrѕ, mоtоrсусlеѕ, еxоtiс саrѕ, luxurу саrѕ, еvеn еаrthmоving and hеаvу еԛuiрmеnt under ѕоmе dеfinitiоnѕ. Nоw business рrосеѕѕеѕ аrе аѕ unique as thе products they ѕеll. And аll оf thеm hаvе ѕоmе fоrm оf inѕurаnсе suited tо thеir rеquirеmеntѕ. Mоtоr trаdе insurance iѕ аn inѕurаnсе рlаn dеѕignеd tо орtimizе fоr thе аutо trade industry in order to оffеr them coverage fоr thе riѕkѕ thаt аrе uniԛuе tо thеir trаdе.

    Nоw аnу buѕinеѕѕ wоuld hаvе ѕеvеrаl fоrmѕ of inѕurаnсе – insurance fоr thе building, inѕurаnсе for assets аnd рrореrtу, inѕurаnсе for vehicles, insurance fоr machinery etc. Prорriеtоr’ѕ often mаkе the miѕtаkе оf аррrоасhing different vеndоrѕ for diffеrеnt kinds оf insurance. Motor trаdе inѕurаnсе offers you соvеrаgе fоr еvеrуthing undеr оnе соnѕоlidаtеd plan. Now thе dеfinitiоn оf ‘еvеrуthing’ will differ according tо whаt you сhооѕе and hоw уоu customize thе plan. This is рrеttу much standard procedure on аll insurance рlаnѕ whеrе thе buуеr саn pick аnd сhооѕе аnd mаkе ѕurе thаt the mоѕt рrоbаblе riѕk factors are соvеrеd firѕt. This аllоwѕ thе buyer tо рriоritizе.

    With motor trаdе inѕurаnсе, уоu can сhооѕе whаt riѕkѕ you wаnt соvеrаgе fоr аnd hеnсе аvоid еnding uр рауing unnecessary mоnеу fоr riѕkѕ thаt hаvе a very low роѕѕibilitу of оссurrеnсе. Mоѕt businesses run in a ѕtriсt way, еѕресiаllу ѕtаrt-uр buѕinеѕѕеѕ whеrе every penny counts, in such a delicate ѕсеnаriо, motor trade inѕurаnсе hаѕ a triple bеnеfit. Firstly, as explained аbоvе, the plan iѕ реrfесtlу ѕuitеd for thе аutо trade induѕtrу and оffеrѕ a соmрlеtе end tо еnd solution. Prорriеtоrѕ nееd nоt go tо separate vendors fоr ѕераrаtе coverage аnd hence avoid hаving a disparate, diѕсоnnесtеd inѕurаnсе ѕуѕtеm whiсh entails a lоt оf time аnd paperwork.

    Mоtоr trade inѕurаnсе аlѕо аllоwѕ thе buѕinеѕѕ tо pay оnlу whаt it nееdѕ tо pay аnd if уоu have vеrу ѕаfе building layout аnd fееl thаt fire hаzаrd is nоt a major risk, then уоu hаvе thе option оf not paying a рrеmium for that. ѕuсh insurance will соmе tо уоur aid whеn уоu need it. Timеѕ аrе diffiсult and mоѕt соmраniеѕ, especially ѕtаrt-uрѕ will nоt have the resilience tо аbѕоrb thе imрасt оf a blow dеlivеrеd bу a ѕuddеn miѕhар.
    a motor trаdеr looking tо gеt a traders insurance, thеrе is uѕuаllу аn еxtеnѕivе liѕt оf роliсу that offers уоu thе chance tо сhооѕе frоm, whаtеvеr the case maybe еvеrу trаdеr can choose whiсh роliсу iѕ mоrе preferred.

     

    MOTOR TRADE INSURANCE POLICIES

    • Basic Trade Coverage for Cоmраniеѕ

    Thеrе аrе ѕеvеrаl орtiоnѕ when it comes tо finding соvеrаgе fоr motor саrѕ that rеԛuirе trаdе company inѕurаnсе. Road Riѕk insurance is the mоѕt basic роliсу. There аrе thrее diffеrеnt kinds: third раrtу оnlу, fire аnd thеft frоm the third party, and then comprehensive. The firѕt kind will cover injuriеѕ, dаmаgе tо property, and death from a vеhiсlе rеlаtеd to уоur buѕinеѕѕ. The second kind covers everything thе first kind соvеrѕ, аѕ well аѕ аnу damage to уоur vehicles frоm fire оr theft. Thе last kind iѕ thе broadest аnd will соvеr ассidеntѕ аѕ wеll as аll of thе above.

    • Liаbilitу Policy Coverage

    You will nееd tо purchase a liаbilitу роliсу if the gеnеrаl public is аllоwеd оn your business рrеmiѕеѕ. Thiѕ kind оf inѕurаnсе will еnѕurе you аrе рrоtесtеd against аnу dаmаgе аnd injury сlаimѕ that mау оссur аѕ a result of a mеmbеr оf thе рubliс being оn уоur рrеmiѕеѕ. Thiѕ mау аlѕо cover employer liability, fаultу wоrkmаnѕhiр, аnd sales аnd ѕеrviсе рrоtесtiоn.

    • Cоmbinеd Cоvеrаgе Pоliсу

    Thе mоѕt comprehensive роliсу iѕ a trаdеr Cоmbinеd Inѕurаnсе Plаn. Thiѕ соvеrѕ аnуthing tо dо with thе mоtоr саr trаdе industry that уоu may соmе in соntасt with. It will соvеr аnу lоѕѕеѕ аt your рlасе of business or аt уоur hоmе. For thоѕе who are intеrеѕtеd in ensuring that there аrе no соvеrаgе gарѕ, thе combined coverage роliсу is the best motor trаdе inѕurаnсе to gо with.
    The kind оf роliсу thаt уоu will nееd tо рurсhаѕе will dереnd on уоur buѕinеѕѕ requirements. It may bе uѕеful tо соntасt a соmраnу that provides mоtоr trade inѕurаnсе ѕо thаt thеу саn еxрlаin еxасtlу what thе diffеrеnt lеvеlѕ оf insurance соvеrѕ. Thiѕ will givе уоu the infоrmаtiоn that уоu nееd in оrdеr to mаkе a dесiѕiоn.

    In thе mоtоr trаdе induѕtrу, Sоmе mоtоr trаdе inѕurаnсе companies will hаvе сеrtаin rеԛuirеmеntѕ that muѕt bе mеt before they will even iѕѕuе a роliсу. Pоliсуhоldеrѕ may need tо bе over thе аgе оf 21 аnd hаvе hеld thеir driving liсеnѕе fоr аt least 1 уеаr. This саn cause problems fоr ѕоmе уоungеr mechanics who are just ѕtаrting оut running their own buѕinеѕѕ but it iѕ wоrth ringing rоund diffеrеnt insurance companies. It may juѕt mеаn thаt thе роliсу cost will be a lоt highеr than if the business оwnеr iѕ оldеr.

    You can use different sites tо соmраrе соmраniеѕ to make ѕurе thаt уоu аrе getting thе bеѕt deal. Sоmеtimеѕ thе сhеареѕt ԛuоtеѕ are nоt nесеѕѕаrilу thе bеѕt fоr your buѕinеѕѕ. Yоu nееd to mаkе ѕurе that the policy is bеѕt ѕuitеd to your company’s nееdѕ and аlѕо thаt thе insurance соmраnу рrоvidеѕ an еxсеllеnt ѕеrviсе. It mау be bеnеfiсiаl tо уоur соmраnу tо hаvе a ѕhор аrоund еасh year, this may mean thаt you gеt bеttеr deals inѕtеаd оf ѕtiсking with thе ѕаmе mоtоr trade inѕurаnсе policy уеаr оn уеаr. Mаkе ѕurе thаt you go tо аn inѕurаnсе company thаt hаѕ a good rерutаtiоn.

    Onсе уоu have dесidеd whiсh policy has thе right level оf cover fоr уоu and whiсh соmраnу саn рrоvidе thе bеѕt ԛuоtе уоu need tо bring thеm and givе them thе details оf your business. Likе all inѕurаnсе роliсiеѕ, it iѕ vеrу imроrtаnt thаt you givе thеm all thе соrrесt infоrmаtiоn otherwise you will nоt be covered. It is аlѕо imроrtаnt to lеt them knоw of аnу changes in circumstances as thiѕ will аlѕо affect уоur роliсу.

  2. Why should you get a motor trade insurance online

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    Getting an insurance quote online

    This is a virtual world, we all approve of it for various reasons and contribute towards its development, and it shouldn’t come as a surprise that insurance quotes are no exemption from this trend- they are winning at this. Anyone in the field of motor business would understand the importance of either part time motor trade insurance or full-time motor trade insurance , it is crucial for sustaining the ups and downs that are part and parcel of the job. So what do you do? If you’ve been on the field long enough, you know that these are important decisions, decisions that need thorough research and a clear understanding of what exactly to extract from insurance quote. And the possible beat way to go about that is- doing it online.The fist thing that pops into your mind whenever you use the word online is accessibility.The convenience that it brings. You can access the details anytime, anywhere. Suppose it was a long day, tiring and hectic but the decision of which insurance to get for your business is still pending, and you cannot undermine the importance of a good motor trade insurance quote, what do you do? Drag yourself out and bear with struggle of doing that? Or simply access your options online as you sip a cup of tea or while you get 10 minutes to spare. It’s pretty simple. A blessing in this fast paced world. No waiting in queues, no taking out a specific time, no appointments necessary. No handwriting mess ups ot ink stains on application forms.

    Insurance policies at affordable prices

    It gets even better, online insurance policies are cost effective! Why? Because the distributor just saved a bunch of money bu not spending it on paper and brokers that explain the pros and cons as everything is digital and every aspect is given. When the distributor saved money on the distribution of its distribution, consequently the consumer would be asked to pay less. And who doesn’t love paying a smaller amount? This is why most of the online insurance policies are cheaper than ones you view while visiting in person.

    After accessibility and cost effectiveness comes the point of saving time. As someone who is operating a motor trade business, it is not easy to take time out or save energy to go and brainstorm on the various aspects of motor trade insurance policies at different offices. Most of the times you end up just drained mentally and exhausted and postpone the decision. Again, this is not something that can be decided upon without thorough consideration, and that requires time and energy which is saved when you view the details online as per your choice and convenience. The substantial amount of data that is provided online allows one to focus fully on the policy under consideration without wasting it on the lesser important annoyances that come with offline methods of visiting and reviewing.

    Online policies and coverage

    There are some companies that provide an array of insurance policies and coverage. The fact is that everyone judges by comparison and you cannot judge whether a particular policy suits you or not if you don’t have a quick comparison. Comparison of cost, care, custody and coverage- all the C’s important in a motor trade insurance quote.

    Being online can give you the luxury of just that, easily in a shorter period. The details of every policy can be reviewed, and an informed decision can be made without much hassle. Information gathering can otherwise be a daunting task, and without proper knowledge, a smart conclusion can never be deduced. So if you want a more efficient method of data collection, do it online.

    Reviews from existing customers

    Another very useful aspect online motor trade insurance quotes is that people have given it ratings and described their experiences in the review section. Actual people who have used the policy and tested it telling what they liked or disliked. Whether the policy lived up to their expectations or not? Whether it was flawed in any way, had loopholes of any sort that the insurer exploited (Good knows this happens a lot).

    At what points did it fall short of the expectations of those that had their vehicles insured, what were the discrepancies in part time motor trade insurance and full time motor trade insurance. This first-hand experience is priceless and can give insight into what the policy is all about.

    Track of premiums, instalments, renewal of the policy

    The online platform is not limited to only buying the motor trade insurance quote, it is also an effective way for existing policyholders to keep track of their premiums, instalments, renewal of the policy and to make online claims. All of this can be done from the vicinity of your house or office. Buying motor trade insurance online is not just a one-time service. It is a system, a process that continues to add to your comfort every step of the way.

    Rainbow Motor trade insurance is an online platform that meets all the above demands, it is impartial and fair and draws quotes according to the requirements specified. It is an easy way for motor traders to access the best possible quotes for Motor dealer insurance, Valeter Insurance, Breakdown recovery insurance, Bodyshop repair insurance, Windscreen repair insurance, Breakers and salvage insurance, car sales insurance, Vehicle delivery insurance, Mechanic insurance and much more. There is the cheaper third party coverage to the full comprehensive coverage which is more expensive.

    It is accessible from wherever you may please. It is competitive regarding cost and provides the best possible quotes matching your requirements it gives an easy comparison as more than one quote is stated that suits your specifications, everything is online and hassle free and they also provide a considerate insurance expert who can explain the things that cannot be comprehended. All in all, it process the best packeges and an exciting, smooth transaction that is custom tailored to the requirements of the client. The best way to do it online.

  3. What Optional Extras can I include with Motor Trade Insurance (and are they worth it)?

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    Motor trade insurance is essential to anyone working in the motor trade. This can include owners of bodyshops, garages, dealerships, car lots and even car valeting services. If you alter, maintain, inspect, test, repair, clean or service any kind of motor vehicle then you will need to take out motor trade insurance.

    There are various types of motor trade insurance cover, which range from third party only to a combined motor trade insurance policy. Each policy will come with optional extras as well, which you will be able to pick and choose from.

    Below is a brief guide to each.

    Employers Liability Cover

    Because individuals working in the motor trade tend to drive or work on a number of vehicles, motor trade insurance actually insures the motor trader him or herself, instead of just the vehicles in question. Employer’s liability extends this cover to indemnify the motor trader in the event of an employee sustaining an injury whilst at work.

    Public Liability Extension

    Public liability cover means that the motor trader is covered in the event a member of the public suffers injury as a result of any activity related to their work. This is very important to have if the nature of the motor trade business in question involves a lot of contact with the public (which most do).

    Combined Policy

    Combined policies are really the ultimate type of cover and peace of mind if you run your business from a dedicated site, even if that site is your home or you only work part time. Combined policies will cover your entire business, including the premises, money, liabilities, tools, vehicles and all contents located at or associated with your business.

    Protected No Claims Bonus

    This option will allow you to protect your no claims bonus in much the same way you might do with regular motor insurance.

    Excess Buyback

    You are also given the option to reduce the excess paid in the case of a claim. This will increase your premium to some degree, depending on how much you wish to reduce the excess.

    Windscreen

    This will cover the windscreen repair of your personal car, whilst at work.

    Breakdown

    This will cover your own vehicle for roadside assistance and home start. European cover is also an option.

    Gadget Insurance

    This optional bolt on will cover your personal vehicle for any gadgets you have installed such as car stereos, for up to £1000.

    For more information on motor trade insurance and the optional extras available to you, call one of our dedicated and friendly team for a chat today on 08445 732 400.

  4. Choosing the right kind of Motor Trade Insurance for your Business

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    If you’re thinking of going into the motor trade business it’s important to understand your insurance options. Motor trade insurance fundamentally differs from private motor insurance in that it is specially tailored to cover the driver and not the vehicle as well. This is an extremely important distinction as it insures a motor trader to drive and work on multiple vehicles.

    There are several types of motor trade insurance available and these can be broken down into three groups:

    Roadrisk Only: The main type of insurance a motor trader must take out. Roadrisk covers the driver only and comes in three options, much like regular motor insurance policies:

    Third Party
    The minimum level of cover for anyone operating repairing, servicing, valeting, cleaning, driving or buying or selling vehicles for profit. Third party will cover repairs to a third party’s vehicle in the result of damage sustained.

    Third Party, Fire and Theft
    As above but will cover the vehicle in the extent of a fire or a theft

    Comprehensive
    As above but will cover the motor trader’s vehicle for any accidental damage sustained.

    Motor Trade Liability Insurance:

    One of the limitations of a roadrisk only policy is that it will not protect you if an individual is injured as a result of negligent actions. For this you need either public liability or employers’ liability insurance, which will indemnify you from accidents to your employees or the general public. Sales and service liability indemnifies you for injury to a third person, as well as damage to their property as a result of sales, servicing, testing, inspection, maintenance or repairs to a vehicle, as well as the buying or selling of any products connected to the motor trade.

    Combined Motor Trade Insurance:

    Combined motor trade insurance is the most comprehensive option in terms of protection for your entire business. Depending on the type of combined cover you opt for, this will cover your business premises, contents, engineering inspection, vehicles in transit, money and tools. Most combined motor trade insurance policies will include professional, public or employee liability, or a combination of all three.

    There are a whole range of add-ons and extensions to these policies, such as insurance for demonstration purposes, which allows you to let potential buyers test drive vehicles; an essential for any motor trader. You can also add named drivers to the policy, meaning your employees can also drive multiple vehicles.

    For more information on the options available and the best policy for your business call us on 0844 573 2400 and speak to one of our Motor Trade Insurance experts today.

  5. Drivers using Mobiles to Face Tougher Sentencing

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    This week the government unveiled their plans to keep the UK’s roads safe with a number of tougher fines and legislations. One of the biggest causes of accidents on the roads is using a mobile phone behind the wheel, with a recent report by the Transport Research Laboratory showing that texting while driving distracts drivers more than driving under the influence of drugs or alcohol.

    The study revealed that drivers who are undistracted usually have a reaction time of one second, while those that are texting have a reaction time of 37 seconds. In comparison, drivers that are at the drink-drive limit have a reaction time of 13 seconds and drivers that are high on cannabis have a reaction time of 21 seconds. The study concludes that using a mobile device behind the wheel is incredibly dangerous, which is why many road safety campaigners have called for there to be tougher punishments for those caught doing so.

    However, just last week road safety minister, Robert Goodwill, said: “I will see if we need to change the penalties. The best deterrent for this kind of dangerous behaviour is the certainty of being detected.” It seems as though not long after the government decided that increasing penalties is the best way to discourage drivers from using their mobile phones while behind the wheel, which is why this week it was announced that perpetrators could now be fined up to four thousand pounds.

    Justice Minister Jeremy Wright said that the new stricter fines are “an effective way of punishing criminals and deterring them from further offending. Magistrates are the cornerstone of our justice system and these changes will provide them with greater powers to deal with the day-to-day offences that impact their local communities. Financial penalties set at the right level can be an effective way of punishing criminals and deterring them from further offending.” Along with being able to give out larger fines to those caught using their mobile phones behind the wheel, magistrates will now also be able to fine up to ten thousand pounds for drivers who are caught speeding.

    However, even though some people are supporting the government’s plans to discourage dangerous driving, official figures have shown that the total amount of motoring offences in the UK has decreased recently. In 2012 there were 378 accidents involving mobile phones which caused 548 injuries and 17 deaths, however between May 2012 and August 2013 the number of people with points on their licences due to using a mobile phone fell by fourteen percent from 677,500 to 583,700.

    As figures show that there are now fewer accidents involving mobile phones some motoring groups are claiming that these new rules are ‘draconian’ and won’t benefit drivers. For example, Pete Williams, head of external affairs at the RAC, said: “What we’re seeing is an ever-increasing level of fines and penalties for motorists coming out of Whitehall with little to no improvement in how these are enforced. Many motorists who do speed don’t think they will get caught despite the already significant fines.

    “When will we hear the Government is investing in better road safety awareness campaigns and police on the roads, rather than just doling out what looks like revenue-boosting punishment?” However, James McLoughlin of the charity Brake supports the new legislation and said: “Limits are there for a reason, and more needs to be done to deter those who choose to put other road users at risk by breaking them.” Edmund King, president of the AA, also weighed in on the issue, and claimed that even though figures are showing that there have been fewer cases of people being caught using mobile phones this could be due to a lack of police.

    Mr King added: “It hasn’t been a priority. We need to send out a warning to drivers that the police forces will have a dedicated crackdown. They need to pull over … every single driver seen with a phone.” It has not yet been revealed whether car and motor trade insurance premiums will increase due to these new rules, however it is extremely likely as drivers are now more risky to insure.

    Photo by Intel Free Press / CC BY-SA 2.0

  6. Motor Property Values on the Rise

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    For many in the motor trade industry it’s extremely difficult to operate without a large premises. Whether you’re a mechanic who needs garage space for three or four motors at a time or a salesman with a large forecourt, an essential part of your business will be your property.

    Typically, those operating motor trade businesses have had to take a considerable risk through ownership of their property and, unfortunately, you can’t protect yourself against property price fluctuations through your motor trade insurance. However, according to a report from chartered surveyors HSM, property yields from motor trade properties have strengthened to pre-recession levels.

    Good News for Renters

    The HSM report concerns primarily renters and claims that property yields from investment in motor trade property is now around 4.75%. This is the highest market level in around seven years, with yields in 2007 just sinking below 5%. It’s also expected that property yields will remain stable over the coming months, which is a good sign that motor trade properties are performing well for renters and that the market is coming towards an equilibrium. Excessively low rents or continual year-on-year growth are both signs that the market is not performing as it should.

    Motor Trade Owners

    While higher yields are great news if you’re someone who has invested in a property that’s currently being used in the motor trade, if you own your own premises it won’t necessarily mean that you will make more money. Yields are only determined by rental income, and as such it’s not going to impact directly on your profits and losses if you own your property.

    However, it’s important to remember that if property yields increase property values are also likely to be increasing. This could have an important impact on your balance sheet, and it may be worth getting a property valuation to ensure your accounts are correctly reflecting the value of the property you have in your books.

    Confidence in the Motor Trade

    An important side-effect of increased yields in the property market is increased confidence in the motor trade industry. This is great news for investors who have already staked money in the market itself, but it’s also likely to be good news for the motor trade as a whole.

    Good market confidence should mean that banks, investors and other lenders are more likely to put their money into the motor trade industry. As most motor trade businesses run with very a high level of capital and often don’t keep much cash in the bank, having easy access to credit is absolutely essential to motor traders.

    General Property Rises

    While yield rises are definitely good news for some traders, they should be taken within the context of wider property price increases in the UK. Many areas of the UK’s economy were severely hit during the recession, and while the commercial market has taken more time to return to pre-recession levels than the residential market, the rise in yields from motor trade properties should still be taken with a pinch of salt.

    The UK is set to be one of the top economically growing nations in 2014, with experts forecasting approximately a 3% increase in GDP growth. It’s not guaranteed that this growth will actually materialise, but it could continue inflating property prices.

    In the motor trade industry there is a real risk that traders will be exposed to overinflated prices, and as such, it’s important to think prudently about your rental property. At the moment, it’s still a very uncertain market and it’s too early to tell whether sale and leaseback transactions are really economical as it all depends on your own personal circumstances.

    A general rise in yields is good news for motor traders, and while there’s still plenty of uncertainty it’s another key indicator that confidence is beginning to return to the motor trade industry. While some areas were certainly hit harder than others during the recession, an increase in yields shows that rental investors are prepared to put their money behind the success of showrooms, garages and repair shops and this can only be good news for motor traders and the industry.

    Photo by Rich Tea / CC BY-SA 2.0

  7. What are the after effects of the recent flooding for Motor Traders?

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    There is no getting away from it: news providers across the country are constantly reporting on the recent flooding and how those that have been affected are trying to cope. Most of these stories have mainly focussed on homeowners who have had to evacuate their properties due to severe flooding, however more and more are starting to look at how businesses have also been affected.

    In fact, just today Prime Minister David Cameron announced that there will be a ten million pound fund put into place in order to help small businesses across the country. For motor traders this is extremely good news, as even though their motor trade insurance policies may be able to cover the costs of damage to the vehicles in their care, the fact is that many may be out of business for a substantial period of time.

    Discussing the effects of the recent flooding, Mr Cameron said: “I am hopeful that the work to strengthen long-term flood defences, and the emergency measures which have been put in place over recent days and weeks will mean that we can minimise the number of homes and businesses affected by the latest high water levels. The recent flooding has been a tragedy for all those affected and my thoughts are with them.

    “While it is of no comfort to those individuals, over 1.3 million other homes have been protected since December and we will continue to invest in flood defence measures to protect even more. Extensive efforts to protect and repair properties and infrastructure are ongoing by many thousands of people among agencies, the military and the emergency services. I speak for us all when I thank them profusely for their hard work.”

    Motor traders based near the River Thames or the Somerset Levels are likely to be most affected, as flooding in these areas have been the worst in years. However, even if your business hasn’t been directly affected by the x flooding, it is likely for all motor traders to feel the after effects. For example, the director of AA Cars, David Bruce, has recently warned motor traders to avoid unwittingly buying vehicles that have been damaged by flood water.

    He added: “While a car can be dried out with no obvious visual damage, immersion in floods can store up a range of potentially costly or dangerous problems that could emerge at a later date. For instance, catalytic converter and exhaust system life can be seriously compromised and there can be host of potentially serious electrical problems – including airbags spontaneously going off with a risk of injury.

    “Many owners may not tell their insurer that their car has been affected by flood water and attempt to dispose of it through the used car market, passing on potentially disastrous problems to an unwitting buyer.” With the issue of flood damaged vehicles becoming more prominent, it is likely that a number of motor traders will soon see a drop in the amount of second-hand vehicles available, meaning that their businesses could suffer.

    Another after effect that motor traders could soon see is a decline in car sales in general, as many people that have been affected by the flooding will be saving their money in order to rebuild their homes or pay home and content insurance excesses. Even those that have luckily escaped the floods this year may soon be investing in flood defences, as it’s very likely that we’ll see even more severe weather over the next few weeks and even 2015.

    So how can motor traders protect themselves over the next few weeks and months? Firstly, you will need to research how badly the area you are based in has been affected, and then make a business plan accordingly. If you expect a slump in business over the next few months now is the time to start cutting back as much as possible and create a contingency fund so that you can get back on your feet in the future. You could also offer discount rates to long-term customers whose vehicles have been damaged by the floods, as not only will this mean you still have business but it will also help build your reputation in the local community.