A lot of motor traders are operating under an insurance policy that is overpriced in accordance to their business type. Alternatively, some traders are operating under a policy that doesn’t provide adequate enough cover to compensate for the types of risks involved with their particular business.
Sole trading mechanics with no registered staff members could be paying for Employee Liability insurance that they do not need. This optional extra covers the business for damage caused by a member of staff because they are either injured or sick. Optional extras like this inflate the motor trade insurance quote and can be avoided (if inapplicable) at the sign-up stage.
Still, these extras can be beneficial to certain motor traders and should not be discarded as ‘cons’. The difference between applying for insurance directly and applying through a qualified broker is that you are not met by a KPI driven salesperson. The broker will shop around on behalf of clients, making sure the specific policy they are after is matched completely, with no redundant extras added.
Though the broker is doing the legwork, the client is still in complete control and the small fee paid to the broker is a tiny fraction compared to an overloaded quote spilling with extras. Motor Traders Insurance is there for the trader’s security and a broker can guarantee that the quote matches the protection value.
Is Motor Trade Insurance a Legal Requirement?
Road Risks insurance is a legal requirement for all vehicles using public roads. The protection is often included in a Motor Trade Insurance package at a discount. Traders can choose to insure each vehicle individually with Road Risks protection – though this is usually more expensive.
Does Motor Trade Insurance Protect all Vehicles Associated with the Business?
It is up to the trader to decide which vehicles to insure under their MT insurance deal. Personal vehicles can be covered as well as a breakdown truck – negotiating these extras through a broker will reduce the chance of overestimated quotes.
What else does it protect?
There are a lot of different packages that will cover a variety of things but the most common policies can cover:
– Damage to all business associated vehicles sustained from staff or a third-party.
– Damage to all buildings within the premises sustained from staff or a third-party.
– Damage and profit loss sustained from adversities like fire, flooding, wind damage etc.
Do I need Motor Trade Insurance?
If your business has anything to do with automobiles then yes, you can benefit from trade car insurance. Get in touch with a broker to find out how extensive your cover needs to be, they will use their skills to make sure your quote is not overpriced.
Establishing a relationship with an insurance broker could pay dividends in the long run as they constantly have their eye on the ball, keeping clients up to date with the cheapest quotes for subsequent trading years.