A motor trader insurance is a special type of insurance policy taken out by businesses that take care of the vehicles of their customers and others. It is possible to purchase such a policy from insurance companies like one sure insurance, who make this their business.
If you read on, then we will look to highlight some of the key features of such a policy for you. Should you need an additional source, this website can help.
What Type of Business Will a Motor Trader Policy Cover?
Businesses that will need a motor trader policy include those in the motor trade that repair or service vehicles, persons offering a valet service, or businesses defined as car dealerships. Anyone involved in collected vehicles will need that cover for driving another’s vehicle. Ordinarily, you would only insure a vehicle that you own but these are circumstances that relate to business.
In terms of the motor trade, there are many occupations where vehicles need to be moved around premises as well as being collected and returned to customers. Other such activities include those fitting tyres to vehicles, which can be a service in itself, or businesses that are defined as MOT Stations. Anyone offering a breakdown service to their customers will need a policy that covers them for road risks.
You will need to be a valid business that qualifies as a motor trader in the eyes of the insurance company to take out a motor trader policy. Another business that springs to mind is that of the scrap dealer. They would transport cars about. Anyone restoring old vehicles to their former glory for others would need and qualify for this type of insurance.
Those who sell vehicles will deal with be dealing with vehicles of different values and will want to have their interests protected by insurance. Nobody wants to be on edge while moving vehicles around as part of their job and this would be more so without insurance. Insurance provides the reassurance that one mistake will not result in potentially financial difficulties for a company relying on that next sale to keep the business running.
What Does a Motor Trader Policy Cover?
A motor trader policy, apart from providing road risks cover, can also offer cover for business premises. This is important where the mechanic, for example, is not mobile and working from home but business premises are the base for activities. This extension to a policy will then provide cover should vehicles end up damaged from standing on a forecourt or whilst being driven around work premises. For convenience, a vehicle can then be moved from and to anywhere defined as involved in business activities.
How Can We Reduce the Costs of Our Motor Trader Policy?
Looking for a more competitive price than the one that you currently have is one way to reduce your premium, and this is possible online now.
Many motor trader insurances will charge you extra for dealing in high-performance or vintage vehicles, or HGV classes, so it is worth not including them as part of your business if you are only talking about the odd one of these. Also, you could look to not display so many cars for sale at any one time, if you are a dealership, because you can only sell so many in a day and you will pay more insurance for the privilege.
If you accept a higher excess on the policy, then you will be able to reduce your motor trader policy premium just as with other kinds of insurance.
Security measures will reduce insurance premiums when devices or locks are used that insurance companies approve of, and so will provide discounts for. It is worth checking which ones your insurer will give you credit for.
If you can afford to, always pay your premium off in one lump sum. It is the cheapest way. On the other hand, you need to be mindful of cash flow when a business. It may just, though, be a case of planning for when the insurance renewal comes round and making sure that the available cash is in the bank.
Whatever your motor insurance policy, it is useful to know the basics of cover. By knowing something about car insurance we will immediately have some understanding of motor trader insurance too. Then you can expand on what is covered to link it to a business, with the help of your insurance provider.
We hope that the above has provided you with the necessary information to better understand the motor trader policy that is taken out by many garages and similar situations.