Traders Insurance - Third Party Only (TPO)
A Traders insurance Third Party Only policy is the most basic level of cover you need as a motor trader.
A Third Party Only Traders insurance policy is a basic level of cover available to motor traders. It can be an ideal policy for traders who are just starting out.
How Does Traders Insurance – Third Party Only Work?
A Traders insurance policy that is Third Party Only will not give you the best Motor Trade insurance protection, due to the limited things it covers. In fact, it works similarly to a regular Car insurance policy with Third Party Only cover.
With Third Party Only, you’ll receive the minimum legal level cover, allowing you to legally drive on UK roads – whether that be in your own vehicle, your stock, or your customers’ vehicles. You’ll have a main car attached to the policy, but you will be able to add and remove cars from the policy using the Motor Insurance Database – which you are legally required to do.
What Is Third Party Only?
Third Party Only is a type of motor insurance product that offers a very basic level of cover, and is often the cheapest level of cover available. This is because in the event of an accident that is deemed to be your fault, the insurer will only payout damages and costs to the other motorist(s), which means you are left out of pocket if there are any serious damages to the vehicle you’re driving.
Will Motor Trader Third Party Only insurance Work for You?
When taking out a Traders insurance policy, one of the main things you will be looking at is going to be the cost, but finding a policy that works for your business should also be a priority. A Third Party Only policy may not be the right policy for you. If you are the only driver insured on the policy, and you only do a small amount of miles a year, then taking out a TPO Traders insurance policy might be worth the risk, however it only takes one small error on an icy road to cause substantial damage to your vehicle.
If you have multiple drivers on your insurance policy and regularly drive customer’s cars on the road, perhaps to test them out after undertaking mechanic work, then having a TPO policy might not be a good idea.
Consider a Comprehensive Motor Trade Insurance Policy
If you’re looking for a new Traders insurance policy or approaching your renewal date for your current policy, taking a look at how you run your business could be a worthwhile exercise. Thoroughly researching potential insurance policies could help you find one that not only works for your business, but is better than your current policy and fits within your budget. You may find that the difference between the price of Comprehensive Traders insurance and a TPO policy isn’t that much, and you may not have to spend a lot to upgrade your cover.
Get Traders Insurance – Third Party Only
Whether you’ve decided on what type of Traders insurance policy is right for you, or you would like to discuss your options with a member of our Motor Trader insurance team, you can click the ‘Get a Quote’ button below or you can call us on 0800 221 8077, and we’ll be happy to help make sure you get your business properly protected!