Depending on what you do for a living, it could be very likely that you have looked into motor trade insurance, or traders insurance as it is otherwise known, at some point. Whilst it is not like car insurance or health insurance in that everyone should take the time to get covered and find the best premiums, only a handful of people will need to have this type of insurance.
But how do you know if you need to find this type of insurance? And where can you get it from if this is something that you are required to get?
Luckily, this guide is on hand to provide you with all the information you need to be able to determine whether this applies to you or not. So, let’s not waste any more time.
The Definition of Motor Trade Insurance
How will you know if you need motor trade insurance if you don’t know what it means? Well, in its simplest definition, having this type of insurance means that businesses and their staff are covered when driving or working on their customer’s vehicles, or those that the company owns. The latter could apply if you run a car dealership, for example. In turn, anyone who primarily works with cars for a living should think about getting motor trade insurance.
Whilst it is important that you have this type of insurance if you are buying or selling cars and carrying out repairs and servicing, it also means that you will be road legal which can be seen as another benefit.
Why Is It Needed?
Depending on which country you are operating in, you will find that having this type of insurance is compulsory by law. If you are in the UK, for instance, it is a legal requirement under the Road Traffic Act 1988. If you are running a business that requires you to drive the vehicles of your customers to and from different locations, you will find that you need to have a minimum of Third Party Only Insurance. This works to cover the cost of any damage that another vehicle may have if you are involved in an accident.
Because it is a legal requirement, you could face disqualification from driving if you don’t have the relevant insurance and, alongside not being able to drive, it could also impact your motor trade business too. Not only that but when you start to apply for the relevant insurance coverage again, you will find them to be a lot more expensive.
Don’t forget about Employers’ Liability insurance too. You should get this when you employ additional members of staff even if they don’t operate the cars or the mechanical side of things.
How to Pay Less for Your Insurance
Whilst having this type of insurance is a necessity for motor trade businesses, it doesn’t mean to say that people are happy about having it. This ultimately falls down to the price of the insurance. But don’t worry about this as there are things that you can do to keep the price of your insurance premium at an all-time low. One of the ways that this can be done is to reduce the number of people that you include on the policy. Your cost will increase depending on how many people you have on your motor trade insurance plan. The reason it is so high is because the risk of an accident heightens with the more people you have on your policy. So, try and keep the driver number down where you can.
Another thing you can do is to look at the age of your drivers. Like car insurance, if you are under the age of 25, you will find that you have to pay more for your premium because you are seen to be a higher risk to insurance companies. If you can, avoid including them as part of your insurance plan until they are older. Do this, and you will see a significant change in the amount of money that you will be spending on your premium. Alternatively, you can also look at various comparison quotes to help you find the cheapest deal that offers all the things you want to see in a motor trade insurance plan. You can do this by speaking to a company directly, or by browsing the internet.
Before opening a motor trade business, you need to make sure that you start looking for the relevant insurance policies before you start operating. This will help to ensure that you have all the protection you need in case you run into problems, and at a cheaper price too.