HAVING the right insurance coverage is a great way to ensure business sustainability. For those who trade cars, motorbikes, or vans, that means getting a motor trade insurance.
The policy is designed to provide extra protection to businesses who deal with vehicles often.
So, how does motor trade insurance work? Is it the right insurance type for your business? There are some basic things you need to understand before getting motor trade insurance, and we are going to review them in this article.
What is motor trade insurance?
As mentioned earlier, motor trade insurance is an insurance type that provides coverage against public and third-party liability, particularly to businesses and professionals who handle motor vehicles as part of their operations. If you are a garage owner that picks up and delivers cars to consumers, for instance, motor trade insurance is the kind of insurance you need.
The insurance type comes with coverage against risks associated with handling cars, motorcycles, and vans that are not your personal possession. Since these vehicles are treated as assets – and get traded in a short period of time – you cannot use your personal car insurance.
As the name suggests, motor trade insurance covers vehicles that are bought and sold, along with vehicles that are in your temporary control due to your business operations. Motor traders and garages are businesses that normally use motor trade insurance to protect themselves from extra financial risks.
Types of Coverage
Not all motor trade insurance plans are created equal. Some offer better protection than the others. The coverage types you get will also dictate the amount of premium you have to pay. Before we get to finding the right motor trade insurance for your business, however, it is necessary to understand the different coverage types available.
Third-party coverage is the basic coverage type that comes with your motor trade insurance. It covers injuries and property damage that happen when the traded vehicle is under your control. As an addition, you can also get third-party fire and theft coverage. You are automatically protected against theft and fire damage.
A comprehensive motor trade insurance offers all of the previous coverage, along with damages and injuries caused by vehicles connected to the traded vehicle. If you tow a customer car and an accident happens, both the towing vehicle and the customer’s car are covered by the comprehensive motor trade insurance.
Getting the Right Policy
Getting van insurance quotes is still the best way to get suitable motor trade insurance. For this, you have Quotezone.co.uk, the leading insurance comparison tool, to help you. Don’t forget your insurance policy can be considered a business cost, so finding the best deal using Quotezone.co.uk can help you lower cost and still get sufficient coverage.
Make sure you read the quotes you receive carefully before finalising your decision. Now that you know how important it is to take out motor trade insurance – and what the insurance actually does – you can be more meticulous with your search. Use the insights found in this article to help you find the right motor trade insurance for your business.
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