Motor trade insurance is essential for anyone who makes an income from buying, selling, repairing, renovating, or anything else that relates to cars, vans, or motorcycles.
What different Motor Trade Insurance policies are available?
Risk only Motor Trade Insurance
If you are looking to take out a risk only insurance policy, then the legal minimum coverage that you require will be Third Party Only. This will cover injury, property damage, or death caused by any vehicle connected to your trade. There are six scenarios when you must have at least this level of insurance.
1. You drive your own or a customer’s vehicle on the public highway
2. You provide general services of repairing vehicles
3. If you buy and sell cars, vans, or motorcycles for profit
4. If you provide valet services or operate as a vehicle fitter
5. If you restore or repair vehicles
6. If you operate an MOT station
There are also more comprehensive forms of risk only insurance. Third party fire and theft covers you for fire, accidents or thefts of vehicles not covered by a third party only. Comprehensive policies cover you for the above and for accidental damage to vehicles connected to your trade
Liability Motor Trade Insurance
They design this coverage for those who have members of the public on their premises, have employees, or for those who restore and repair vehicles. Liability motor trade insurance comes in three forms:
– Product, sales, and service indemnity
– Public Liability
– Employer’s LiabilityCombined
-Motor Trade Insurance
This policy covers every aspect of your business within the motor trade. It will cover you whether you work from home or at business premises. It provides cover for liabilities, vehicles, money, premises, tools, and the content of vehicles.
How much does Motor Trade Insurance cost?
Motor trade insurance can be cheap or very expensive depending on the level of cover you choose. However, what must be borne in mind is that it can be an awful lot more expensive to not have the level of insurance you need.
Once you have decided the level of cover that is most appropriate for the work you do there are several factors that will determine the cost of your policy.
· Your age – Many insurance providers won’t offer any cover for those under 25 years, some better policies are available for anyone 23 or over. Younger than this and you will struggle to get covered. The older and more experienced you are the lower your premiums will be.
· Your postcode – Where you live matters. Big cities, especially those with high crime rates will have considerably higher premiums.
· Full-time or part-time – If you are part-time and have a second job you’ll require a commuting to and from work clause which can increase the cost of your policy.
· No claims bonus – The longer you have run your business without making a claim the lower the cost of your policy.
· Added drivers – If you wish to add your employees as named drivers this will increase premiums.