You may have had motor trade insurance before if you have been operating your business for a while, but are you quite sure that you had the best one? If you are thinking of getting proper cover for your business and you want to switch policies or look for a better one, then you need to know all you can about motor trade insurance and how it works. There are various kinds of coverage you can get, but this doesn’t mean that you should get it all or that it’s really appropriate for the kind of business or trade you have. So, here’s the gist: what you really need to know about motor trade insurance so you can make the proper choice.
The main differences between private vehicle insurance and motor trade insurance
If you have a private vehicle, you need to have insurance, that’s a given. But a regular vehicle insurance policy will only give you coverage for driving your own vehicle or another person’s vehicle for business or private use, based on the policy itself and its level of coverage. On the other hand, motor trade insurance is specially designed for people who own or work with a wide variety of vehicles or multiple vehicles, including the cars of customers. Since you have a high volume or frequency of vehicles in your possession at any given time, you shouldn’t be bothered trying to update insurers each time you drive another vehicle, which you would have to do if you only have private vehicle insurance. This is why a motor trade insurance policy is necessary if you deal with a range of vehicles on a regular basis.
The level of coverage you can get for motor trade insurance
When it comes to motor trade insurance, there are two main kinds available: combined cover and road risk only, as reputable motor trade insurer Tradex confirms. Road risk only is geared towards traders who run and operate their business from home, and it is also geared towards small business owners. But with both options, you can also expect different levels of coverage. These include the following:
- TPO or third party only
Third party only, or TPO, is similar to private vehicle insurance coverage wherein it only gives you cover for the third party if you become involved in a vehicular accident which is your fault. This policy is the most standard and basic, and it is the minimum kind of policy required legally for motor trades people or business owners.
- TPFT or third party, fire and theft
TPFT gives you the same kind of coverage as TPO, but with a small difference, as it can also cover damage to your vehicles or customers’ vehicles due to fire or theft unless you are in an accident which has been considered your fault.
A comprehensive policy will include the same cover as TPFT, but you will also receive coverage for damage to your vehicle, regardless if the damage is your fault (or not).
Additional factors to bear in mind
Some businesses may only require road risk cover but require additional cover if they have employed an additional person – in this case, they would also need employer’s liability coverage. Some mobile mechanics, on the other hand, may find product liability coverage quite useful, as it can cover them if they use parts which are faulty, and which result in damage to a customer’s vehicle.
It’s essential to assess your needs as thoroughly as possible when looking for the proper motor trade insurance policy. Luckily, there are plenty of insurance providers out there who are more than willing to give you the right advice – and the right advice is crucial if you want to make the best decision.
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