Motor trade insurance

Many people have not heard of Motor Trade Insurance, and that is because they do not work in the car industry. Motor trade insurance is a specific type of car insurance that can insure many facets of the automobile insurance industry. This can include insurance for the buying and selling of vehicles for profit, as well as mechanics and mobile mechanics who are taxed with fixing vehicles. Also, people or businesses who clean vehicles, store vehicles, or tow and otherwise recover vehicles, may also need to get motor trade insurance plans.

What Is Motor Trade Insurance?

Multiple types of motor trade insurance are available, including road risk only insurance and combined coverage. Road risk plans are aimed at people who operate a small business or from their homes with minimal assets. Everyone from mobile mechanics to car salesman who operate from their homes or run a mobile business can consider road risk only motor trade coverage.

Combined coverage is for all other automobile industry businesses, and can be an essential part of keeping a business running. There are many risks to running a car industry related company, and these policies protect you financially from these risks.

Road Risk coverage provides insurance for people who drive any vehicle that is in their possession. This includes vehicles that they own, but it also includes vehicles in a person’s stock. The coverage extends for both personal use and for motor trade purposes. Another benefit of having a road risk insurance plan is that you are covered for vehicles that belong to your customers as well. If you are required to drive a customer’s vehicle for your work, road risk coverage may be the type of business insurance coverage that you need.

A more expensive type of motor trade insurance is also available, called motor trade combined insurance. This type of policy can not only cover your buildings, the contents of your buildings, the equipment in your buildings, and other equipment that you own but will also cover tools and money. You receive Road Risk coverage with this policy as well. There are three different levels of motor trade policies. These are Third Party Only, Comprehensive, and Third Party - Fire and Theft. Each of these types of coverage offers different levels of protection.

What Other Motor Trade Coverages Are Available?

Additional coverage is also available. These can include things like Employers Liability, Product Liability, and Public Liability. Public Liability insurance coverage will cover you against claims that are made to you by members of the public, whether the claims are for personal injury or damaged property. Product Liability covers work that you carry out, as well as parts that you use in the case that they are faulty. Employers Liability is a requirement for businesses that have employees, and this coverage protects you financially in cases of personal injury or illness that are caused as a result of the employee's work that they do.

Who Needs Motor Trade Insurance?

Understanding who needs a motor trade insurance policy is essential for car-related businesses. Make sure to update your knowledge on motor trade insurance, as sometimes policy needs change as a company grows or expands. If you are expanding to have employees, for example, you will need to consider Employers Liability Coverage for the first time.

Also, you should understand the differences between private car insurance coverage and motor trade coverage when you apply for a policy. Regular auto insurance policies only cover you when you are driving your vehicle for private or business use. It can also cover you when you are driving someone else’s vehicle for private or business use as well, depending on the policy and the level of coverage. Businesses that have a higher volume and frequency of vehicle changes in their possession should consider getting motor trade insurance. This makes it so you do not have to update the insurance company for each car that needs to be covered, as they would with a private car insurance plan. People and companies who may need this type of coverage can include vehicle sales, mechanics, body shops, vehicle recovery, valet drivers, car jockeys, mobile mechanics, and others as well.

What Does Motor Trade Insurance Cover?

Each level of motor trade coverage provides coverage for different things. Third Party Only coverage is considered the most basic level of insurance coverage. It only covers the third party if you are involved in an accident that is deemed to be your fault. The minimum legal limit for auto insurance coverage, in some cases, is Road Risk Third Party Only insurance coverage.

The second level of auto insurance coverage is Third Party, Fire and Theft. This policy covers the same things as Third Party Only coverage, also called TPO, but has the addition of covering damage due to fire, as well as covering expenses related to the theft of your vehicle or a customers' vehicle. This is unless you have been involved in a car crash that is your fault.

The third level of coverage available, which includes all of the benefits of a Third Party, Fire and Theft policy (also called TPFT), but also provides coverage for additional things. Essentially, this type of policy is for any damage to your vehicle or your customer's vehicles, regardless of whether it is your fault or not. Some businesses may only need a road risk policy, but additional coverage is essential for many others.