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TIPS ON WHAT YOUR MOTOR TRADE INSURANCE SHOULD COVER

Since the motor trade business is so lucrative, it also requires maximum security, which can only be attained from insurance policies. An automobile firm can choose many insurance policies depending on what fits best. In general, motor trade insurance covers a variety of situations that mainly emanate from liabilities and risks. They include:

Fire and theft threats: situations like this are inevitable that once they happen, nothing can be retrieved. All insurance agencies offer policies that are likely to respond to issues as those. It is wise noting that these policies not only compensate for the vehicles but also for equipment and items that are in use in the operations of the firm.

Third party: in case one of the vehicles of the firm is involved in an accident, third party policies provide cover to the damage of the car and compensate losses to the passenger in the vehicle.

Employees: for the staff in a firm to work effectively, they must be assured of coverage by the employers’ liability cover while at work. This is because the motor trade businesses are involved in major risks that in some cases the employees may be injured or die at work. However, with the cover, they are assured of attendance should unfortunate incidences occur.

Accidents: Since customers take their vehicles for check up in the automobile firms, the vehicles are likely to be involved in accidents of all kinds while under the care of the firm e.g. accidents while test driving. For this, the insurance is likely to cover the damages and give compensation to the driver involved, as long they are registered as part of the firm. Therefore, the owners of the vehicles have nothing to worry about since the damages are attended to appropriately with no need of their assistance.

Products: this is when unfortunate cases occur for reasons of improper fixing of items in a vehicle. A firm is likely to be sued by a customer due to mechanical failures of the vehicles, which may have resulted to causing an accident, for wrong fixing of items while in the firm. For instance, a car could have been taken to the firm for repair then after getting out of the garage, the situation that led to its service worsens and it causes an accident. Situations like this are usually appropriate if the firm has product liability cover over such incidences since the customer may decide to sue the firm for the damage while faults could have emanated from manufacturers of the item.

The public: In case, a customer is hit or is injured while in the premises of an automobile firm, then moves to sue the firm owner for the damage, the public liability should cover the firm.

Combined insurance: the policy is used not only to cover for the mentioned risks and liabilities in the firm but also for the damages in the firm that would affect the employees, machinery and tools, the premises and everything that involves the firm. The insurance cover is quite expensive but one can rest assured of security should a misfortune strike.

HOW TO GET LOW COST MOTOR TRADE INSURANCE

In motor trade business, it is very crucial getting the correct motor trade insurance cover that protects all that is involved in the motor business. It is profitable to the business getting a cheap motor trade insurance policy to cut the operational expenses though one must be careful not to choose an insurance cover that will not cover all the activities in the business that could result to losses in case of negative eventualities that will require claiming from the insurance.

A good research doing the qualitative and quantitative analysis of all that should be covered by the policy should be undertaken prior to choosing the motor trade insurance policy to include all that is relevant to be included in the insurance cover. There are different ways one can reduce the cost of the insurance policy costs so as to minimize the operating costs of the business.

No claims on the insurance policy – The insurance agencies give discounts to individuals who have no history of claiming for any damages or accidents. Such clients who have never claimed to the insurance companies are regarded as low risk clients and they are usually given low discounted premium rates.

Restricted drivers – The insurance companies require knowing the drivers that will be driving the vehicles in the business. They should be assured that only the drivers included in the insurance policy will be driving the vehicles. On the other hand, if the drivers are so many, the insurance agencies consider this more risky as compared to fewer drivers in the company. So, the person seeking for the motor trade insurance cover should include fewer drivers in the documents.

Clear documentation – Insurance agencies require clear documentation of all the liabilities covered by the policy. If they notice fishy documents, they tend to increase the premium rates.

Voluntary excess – Persons who voluntarily wish to be charged higher excess rates in times of accidents on top of the compulsory excess charges on their motor trade insurance policies are given better-discounted rates. The policy holder should consider this to ascertain to the insurer that their intention is not to be compensated but for protection purposes on situations unavoidable.

Cover and benefits – An insurance holder may opt to pay additional cover to protect liabilities such as windscreen breakage and other minor damages that may occur to the vehicles. With such additional covers, the insurance agencies will charge less premium rates on the motor trade insurance cover since there are less claimable risks on the cover.

Vehicle exclusions – The policy holder so as to get low motor trade insurance cover may opt to exempt some vehicles from the insurance cover. Luxury vehicles tend to attract high premium rates which the policy holder will opt to exempt from his motor trade insurance which could have made the premiums be very high. On these cases, the policy holder should clearly explain to the insurance agencies the vehicles that will not be covered by the policy.

Trading from the premise – Vehicles at the premises may be exempted from the policy in some cases.  The policy holder may opt to exempt coverage of vehicles damaged in the premises since the risks of accidents in the premise are very minimal and this will make the premium to be less.

Additional occupants – Customer’s and visitor’s vehicles within the premises for private missions and have nothing to do with the business activities may be excluded from the policy to cut the motor trade insurance cost.

DO YOU REALLY NEED A MOTOR TRADE INSURANCE?

For those making a living in the motor trade business, motor trade insurance is a necessity in their business operations. Getting an insurance policy to protect the business is not only vital but the type of insurance policy one takes is of more importance than just getting an insurance policy that will not compensate in some incidents. Finding the right policy that fits one’s business is the crucial part of insuring the business because getting a motor trade insurance policy that don’t fit the specific business may result to be a cancer on the business rather than being the desired cure. So it is very important to find the best motor trade insurance that fits the business type one is involved in.

Getting a motor trade insurance is important because all the profits one made in growing the business for a long time can be lost in a single wreckage incident where the vehicles are involved in an accident, a storm may befell one’s business premise and damage all the vehicles or even a thief steals one of your vehicles. While driving on the roads, you can get into an accident and your car gets completely or partially damaged that will need repairs. While packing one of your cars on the streets, it can get damaged by other passing vehicles hitting on them which can be hit-and-run incident that you will have no one to claim the damage from. So, to be on the safe side, it is good to have some protection that protects your vehicles in case anything happens to them.

A bad tornado or storm can happen, wreck all your vehicles on the showroom at once, and go into major losses if you do not have an insurance protection to safeguard you in such times. With good motor trade insurance in such cases, you will get money to repair all your vehicles to get your money back after selling them to continue with the normal business. Without a motor trade insurance policy, you will not be able to sleep at night comfortably because you are always thinking of negative incidents that can happen to your vehicles any time; day or night. In some cases, a storm may occur on your business premises but not damage you vehicles but cause interruption in the running of the business. With a reliable motor trade insurance cover, they will pay for the interruptions caused by the disaster during the times you are out of business.

Vehicles that are in good shape are prone to be stolen by thieves who can strike any minute. With a motor trade insurance that covers theft of the vehicles, one will not worry in case one or some of your vehicles are stolen and sold by the thieves since the insurance will do thorough investigation to ascertain than it was not stage managed theft and compensate for the stolen vehicle.

Besides damage and loss to your vehicles and premises, the worse can happen when driving one of your can and you get injured in the process in case of any accident. With a motor trade insurance, it will cover for all the medical expenses involved on the accident to you or one of your driver included on the policy or a third party member depending on the type of policy taken. All these reasons are why one should consider taking motor trade insurance than fits their type of business.

BENEFITS BEHIND HAVING A MOTOR TRADE INSURANCE

Motor trade insurance is of essence in any business whether it involves selling or buying of vehicles. It is also vital to those who fix damaged vehicles and to the owners and employees of a firm in case of an intended occurrence, could be an accident or a breakdown of a vehicle, by compensating to any kind of loss.

However, motor trade insurance is not a single policy, it is composed of many types to suit and attend to different businesses’ needs. The policies have different features and they differ in coverage, all contents indicated on the insurance quotes. The different kinds include: Theft and Fire policy, Third party insurance, Liability insurance, Comprehensive insurance and a combination of the either stated.

The reasons that lead to acquiring motor trade insurance are:

  • They provide discounts for any possible increased excesses
  • They cover for full time and part time traders
  • They cover for named employee drivers in a company hence compensating for any possible shortcomings
  • They offer affordable policies for traders working from home or from their firms
  • They cover for risks and damages that may occur
  • Some policies cover for motorcycles and other commercial vehicles as long as they are registered as part of the business
  • It assists in the saving of money for the servicing and repairing of damaged vehicles
  • With the motor trade insurance, one can start saving for the vehicles
  • Those who repair damaged vehicles find themselves in a difficult situation when repairing vehicles that have no insurance covers since the vehicle owners may be reluctant to pay their dues in due course. Some motor trade insurance companies opt to deal with the mechanics hence to the easement of the entire operation.

Many insurance brokers offer different policies depending on the interests they have for their clients.  The merits that come in hand with the competition in the motor trade insurance industry are:

Pricing: each insurance company is striving to remain relevant in the field and therefore the price they set for the premiums is quite reasonable which entices clients to applying for the policies.

Cover types: each client has specific needs when they seek to cover their vehicles. Most companies have come up with all sorts of policies to fulfill the needs for clients. Some clients may require more than one policy it is therefore the insurance broker’s initiative to introduce many policies to clients.

Financial capability: every client is in search of an insurance company that has financial strength, for quick response when need arises. Therefore, all insurance companies ensure that they are equipped financially and that they are able to attend to clients promptly when called for their service.

Easy management: for an insurance company to offer the best to their clients they have to better their services by offering what best suits their clients with straightforward and simple dealings and of course with the best prices.

Accessibility: reachable insurance brokers earn their clients confidence hence leading to more clients seeking their services.

 

 

 

 

 

 

 

 

 

 

MOTOR TRADE INSURANCE INCLUSIONS AND EXCLUSIONS

Being in the automobile industry means that insurance covers are a necessity since the business is prone to all kind of risks and liabilities. Automobile firm owners should therefore have information concerning the best insurance companies and what best suits their firms. However, there are facts that are of consideration in the insurance policies while others are of exemption.

Inclusions

  • The firms must have employer liability covers to cover for the employees while they are at work since they easily are injured and some cases turn tragic leading to death. With the cover, the staffs have no worry carrying out their roles.
  • The insurance policies will require recognizing some specific drivers who are required to test drive vehicles while going through servicing or in repair. For this, the specific drivers are capable of seeking compensation should they be involved in an accident.
  • Customers’ vehicles under the care of the automobile’s firm are compensated should they be involved in some kind of accident or damage while in the premises or when being handled by the firms’ staffs.
  • The insurance policies should cover for the premises in case of damage from fire, storm attacks or theft. Some policies may also include covering for damages of the machinery, tools, fittings and fixtures.
  • Third party cover is a necessity to cover for passengers and the driver for losses incurred and the vehicle’s damage in case of an accident.
  • For a risk free situation, it is necessary having a comprehensive insurance policy, which covers all the damages, risks and liabilities at a go should they strike an automobile firm.

Exclusions

  • The policies should not cover for customers carelessness while at the firm
  • Un-roadworthy vehicles should be out of plan when it gets to insuring vehicles. It is a great loss insuring old vehicles since they are likely to be damaged often.
  •  Unregistered staffs should never seek compensation should they be involved in some kind of accident.
  • Vehicles involved in accidents and are not registered by the firm are not compensated for the damages.
  • Reluctances in paying premiums results to insurance companies excluding the firm from the benefits of the policies that is not only dangerous to the firm but also to the customers.
  • The policies do not cover for internal damages that are out of careless handling of equipment by the members of staff.
  • Since time is of essence, the reporting time of an incidence should be 24hrs after the occurrence, where the insurance company should be alerted, taking long would only disable the operations that the policy was intended since they will regard the incidence not genuine for compensation
  •  The insurance policies will only cover for their intended roles, otherwise should an incidence occur that was not part of the plan, then it is the initiative of the firm owner to take the challenge and sort it out. The reason firm owners are advised to have the combined insurance policy.
  • When a vehicle is out of the firm’s possession it ceases being part of the firm, therefore the policy has no business with the particular vehicle.

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