Insurance in general can be a very confusing subject. It is hard to know exactly what cover you need without knowing what kind of things can be covered…are you still with us? Two products that often get confused are Motor Trade insurance and your everyday Private Car insurance...
Private Car Insurance
A Private Car insurance policy can cover your personal vehicle for social, domestic, pleasure and commuting use - there is also business use, but that extends the policy beyond what we are discussing in this article. The three types of cover you have available to you are Third Party, Third Party, Fire & Theft and Comprehensive. Third Party is your most basic form of cover and is normally the cheapest. In the event of an accident, this level of cover would only pay out for damages or injury to any third party person or property involved. Third Party, Fire & Theft is exactly the same as the above, but will also cover your own vehicle for damages from fire and theft.
The most expensive type of cover is usually Comprehensive, and this is due to the fact that it covers everything previously mentioned and also your own vehicle in the event of a fault claim. It is worth noting that the common misconception of being able to drive any car on a Comprehensive policy is not always true, and if your policy does allow you too, you are normally covered Third Party Only. Please check your policy wording before driving another vehicle.
There are various add-ons to this particular product, such as breakdown recovery, windscreen repair, excess protection, plus many more. The problem is that these add-ons reflect the personal usage of the car and will not extend to the requirements of a Motor Trade business. So for example, if you were a mechanic, using your vehicle with private car cover to go and fix someone else’s car and your car got damaged, broken into or stolen, then none of the damage, items taken, or even the car itself would be covered.
Motor Trade Insurance
With a Motor Trade insurance policy, you are able to get cover that reflects your business operations. Regardless of whether you sell six cars per year from your own driveway or whether you have 3 different premises servicing and selling hundreds of vehicles weekly, you are able to get a policy tailored to your specific requirements.
Motor Trade insurance still offers the same three levels of cover as a private car policy, which are Third Party Only, Third Party, Fire & Theft and Comprehensive. While the levels of cover are similar, the elements that set a Motor Trade insurance policy apart from a Private Car insurance policy are the additional extra covers, such as the ability to drive multiple vehicles, and add-ons that take into consideration the business aspect. Various liability protections can be added to your policy to protect against claims made by members of the public for injury or damage to property caused whilst either on your premises, or as a result of your business actions. Cover for tools, cash and machinery in your vehicle or premises can be added too, and these are just a few of the many additional extras that you can use to make a policy that is specific to your needs.
So Be Aware
There are motor traders out there that go by without the proper form of insurance, whether knowingly or not. This is not only illegal, but should the worst happen they could end up with huge fines and court costs, not to mention possible imprisonment. So if you are a motor trader and in need of insurance, then why not talk to one of our motor trade experts today? They can guide you through the whole process, making sure that you only have cover for the things you need. Give us a call today on 0800 221 8077 or click the Get a Quote button now.