If you know the concept of risk in business, you realize that motor trade cover is an essential service for businesses which deal in buying and selling motor vehicles. However complicated it may be, all businesses that deal in motor trade need to understand motor trade insurance properly.
What is motor trade insurance?
A motor trade insurance cover provides compensation whenever the policyholder experiences financial loss due to the lose or damage of his or her cars. It also covers other risks such as accidents. Motor trade insurance is available to car dealers and other motor-related businesses.
Types of motor trade insurance policies
There are several types of motor trade insurance policies. Some, like the road risk motor trade cover is compulsory to all car dealers. Others like the Combined Motor Trade cover provides more features on top of road risk cover. For instance, there are options for insuring your buildings and machinery. You also may insure against business interruption due to certain occurrences. There is also a product liability cover which safeguards the policy holder from the supply of faulty products from manufacturers. It is important to note that these policies are not just for car dealers. Owners of garages, Ministry Of Transport centers, and Car valeters are also eligible to apply for these policies. Whatever kind of motor trade you are involved in, you need a motor trade insurance policy that will keep your business running smoothly. On top of these policies that are particular to the motor trade, you also need employer’s liability insurance, public liability insurance and property insurance cover among other covers depending on the exact description of your business activities.
Understanding each motor trade policy
Each of the policies mentioned above has elaborate descriptions, conditions, and limitations. You should get help from your insurance lawyer or motor trade insurance broker in understanding and interpret the policy document before you sign it. For instance, you need to understand the various levels of covers specified in the road risk insurance cover. The level of cover can be the third party only, third party fire & theft or comprehensive. Note that the description of these levels of cover may differ from one policy to another.
Choosing the right motor trade insurance provider
It is not always easy to know which motor trade cover provider will give you value for your money. As a policyholder, you are interested in the insurance company that will provide the cover at the lowest premium rates possible. Get in touch with a motor trade insurance provider who is registered and licensed to operate in the UK. Make sure that you consider the claim payment history of the specific company to ensure that you don’t get into a contract with an insurance company that rarely pays claims.
In summary, the motor trade insurance cover is a bit more complicated than other areas of the automotive industry. There are several options to consider. There are also several variations of the policies offered to motor traders. It gets even more complicated when issues like age, trade plates, the number of drivers covered by a single policy and restrictions come into play. For you to have all the information regarding motor trade insurance at your fingertips, you need advice from knowledgeable motor trade insurance agencies.