So, you love cars, motorbikes, vans, or whatever vehicle it is that you have goo-goo eyes for. A lot of vehicle lover’s dreams are of having a trade or job revolving around vehicles, meaning they get to spend more time around those said vehicles. Now, while it’s all well and good to say that, but being fully qualified and insured to trade and sell vehicles is a whole other matter.
First let me begin by explaining what Motor Trade Insurance is. Essentially, motor trade insurance covers anyone who is looking to deal in selling, buying, repairing or anything similar with any sort of vehicle. This kind of insurance is design specifically for any sort of company, whether it’s a small local motoring business, or a national grade motor company. You can get motor trade insurance for under 21’s, and over, it really doesn’t matter your age; if you’re looking to deal in vehicles, you’re going to need motor trade insurance.
So now that you know what it is, I’m sure you’d like to know exactly what type of insurance you need, right?
Well, there are five main types of motor trade insurance, which are all listed below, along with their differences, and will help you to decide which motor trade insurance you will need, depending on exactly what you need it for:
- Third Party Motor Trade InsuranceThis is the basic form insurance that any vehicle owner needs to be allowed to use their card on the road, or even off of it! This form of insurance is only designed to cover damage costs of third parties (i.e the people’s cars you might end up damaging throughout your driving experience). This means any damage inflicted on your own car will have to be paid out by you (which can be very expensive if the damage is extensive!). Therfore, a motor trader is going to need insurance that is a little more substantial and less basic. Let’s move on.
- Third Party Fire and Theft Motor Trade InsuranceThis is basically Third Party Only (TPO, the insurance above), but with protection from fire and theft, in the chance that these events do actually occur during your possession of the vehicle.
- Comprehensive Motor Trade InsuranceNow we’re starting to look at insurance that is a little more substantial. Comprehensive cover includes all of the above, with the added extra of a customer’s car being covered in the event that something ends up happening. This is the starting motor trade insurance that, as a motor trader, you want to be looking at, as it will cover your back over the long term. This is definitely the motor trade insurance for under 21’s, especially if they haven’t yet started looking into a bricks and mortar type of establishment.
- Liability Motor Trade Insurance This is where it gets serious. This type of insurance is designed to cover motor traders who have customers coming onto their places of work (such as a garage) and trading, buying and selling to/from them whilst they are on the premises. This would be considered a high level of motor trade insurance, and is something to definitely be considered if you’re serious about being a motor trader.
- Combined Motor Trade Insurance Finally, we come to the last type of motor trade insurance. This type is the most extensive, and covers pretty much everything, and is designed for motor traders who are planning to not just work at their business, but also from their home.
So, it really is up to you as a motor trader to decide how extensive you want your cover to be, and it would be worth getting on the internet and comparing a motor trade insurance online quote or two, to figure out how expensive or cheap certain types of insurance are going to be.
