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Make Sure You Have a Motor Trade Insurance Policy if You Are a Car Trader

Friday, September 3rd, 2010

There are car salesmen and women all over the country trading daily – whether it is someone doing it part time in addition to another job or someone working full time in the industry. There will be people who only run a small scale operation dealing with a couple of cars at a time and others who have a whole car lot that is always full. No matter how much you are involved in the buying and selling of cars, you should make sure that you have a sufficient motor trade insurance policy to cover you in the event of any mishaps.

Taking out the correct level of cover can give you protection for a whole host of things related to your work. One of the biggest differences between a private policy and that of a trader is that a traders policy can cover multiple vehicles and you on them. This is obviously going to be extremely beneficial to you if you are going to be handling different cars each week.

A handy addition that you can have with a traders policy is demonstration cover. This addition will insure you so that you can allow potential buyers a test drive in the car they are looking at. There are stipulations that need to be met with this so you should always check with your broker to get the full details. Having this addition can ultimately help you to make a sale as most people will want to take a car out for a spin before they decide on whether or not to buy it.

Another important aspect of these policies is the fact that you can get public liability cover with them as well. This cover can be very important as it protects you in the event of any of your customers having and accident or injuring themselves whilst on your business premises. You may also be able to cover your Sales and Service liability – where any work you have carried out can be covered. As almost all sales people are going to come into contact with their customer, this is cover should be at the front of the mind when looking for the right policy.

Choosing the right motor trade insurance can also mean that you can get your stock, business premises and contents covered as well. This can be reassuringly valuable in the event of anything happening at your workplace.

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If You Are a Valeter Then Motor Trade Insurance Is a Must

Tuesday, August 24th, 2010

Picture the scene – a customer drops off their Ferrari 360 with you to be valeted. The car is their pride and joy and they specifically ask  you to be careful with it. Now, no matter how meticulous you are with your planning and how carefully you go about your work, accidents can always happen. You may inadvertently spill some of your cleaning products onto the cars interior or drop something on the bonnet which leaves a scratch. If anything like this happens then it may not necessarily be due to your negligence but it still means that you are responsible. If you are not properly covered then you are going to end up having to fork out to fix any damage once the customer has assessed it.

If the same situation occurred and you did have a proper traders insurance policy then there would be a massive weight lifted from your shoulders. Sure, the customer is still going to be extremely unhappy that any damage occurred in the first place but at least it can be resolved quickly without you being the one to foot the bill.

Whether you are a valeter, a mechanic or you buy and sell cars, you should make sure that you are fully covered for any of the work that you do. This means that you need to have the correct type of motor trade insurance policy with the correct type of cover for your business. Failing to take out the right cover could lead to you paying a hefty price at a later date.

You need to make sure that you have a sufficient motor trade insurance policy whether you are going to be working with Ferrari’s, Skoda’s or Fiat’s. Don’t become another statistic!

Always check with a broker if you are unsure about the level of cover that you need.

Think Insurance – Quality, Service and Price.

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Luxury Car Sales On The Rise?

Thursday, August 12th, 2010

Whether the recession has truly finished  is a question most of us are asking – but there could be some light at the end of the tunnel. Pendragon, the UKs largest motor vehicle retailer, has declared that it’s sales of luxury and prestige cars have risen by a staggering 20% since the start of 2010. These sales are made up of premium brands like Mercedes and Maserati.

Trevor Finn, Pendragon’s chief executive, said about the premium car market “It has been an aggressive V-shaped recovery”. Sales of “premium” cars were the hardest hit in the beginning of the recession but are now in the vanguard of the recovery.

Overall new car registrations in the UK rose 24.6% in the first six months of ’10 – but only 12.9% if you exclude the effects of the scrappage scheme. The scrappage scheme was implemented to help offset the effects of the recession. It allowed a £2000 sum to be put against the value of a new car when you part-exed a vehicle over 10yrs old.

While sales of luxury and prestige vehicles seem to be on their way up other sectors are struggling. More average vehicles like Ford, Citroen and Vauxhall are selling their way out of the duldrums but at a slower rate. While commercial vehicle sales could be described as “subdued” – vans and trucks have been especially hit hard.

So, it seems as though mixed signals are the order of the day with some pointing up and some pointing down. Lets hope that the motor vehicle market as a whole has some more miles left in it.

Think Insurance – Quality, Service & Price

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Motor Trade Insurance a Must For Mechanics

Thursday, August 12th, 2010

If you are working with other people’s cars in anyway then it is important to make sure that you are properly covered in the event of any accidents. Mishaps can occur when you least expect it – and it might not even necessarily be due to your own action or fault. For this reason, we have chosen to give a brief outline of exactly why taking out a motor trade insurance policy is important if you are working as a mechanic.

If you are working in a garage then the chances of accidents occurring can be fairly high due to the nature of the work that is being done. Basically, as soon as the customer drops off their car for maintenance or repair, you are then responsible for it. Anything that happens between them leaving it with you and then picking it up again could be placed on your shoulders.

When you come to start on the customer’s car it may need to be moved into the garage working area - this could lead to a  bump or scratch. There could be an error made during the repair work that leads to damage being done. Maybe the inside of the car gets dirtied or stained whilst the job is carried out. If any of these things occur then the customer isn’t  going to accept their car back in a worse condition - they will want the problem sorted out.

This is where you motor trade insurance policy comes into play. By making sure that you are fully covered for your work you take away the financial risk if anything does happen. Imagine if you didn’t have the necessary cover and you damaged an expensive car, you could end up having to pay out a large sum to fix it. With the right policy, the costs for any damage that occurs as a result of your work will be met by your insurer. For this reason it is easy to see why you should always make sure that it isn’t going to be you who is forced to pick up the cost!

Think Insurance – Quality, Service and Price

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Motor Trade Insurance and Modified Vehicles

Thursday, August 5th, 2010

A frequent question we are asked regarding motor trade insurance is “are modified vehicles covered?”. Well that can be a complicated issue and depends largely on the insurance company you decide to go with. Hopefully we can clear up some commonly held misconceptions in this blog.

Our first point would be: You are not automatically covered on these types of vehicle on your policy! Please, always ask your broker whether you are or not in fact covered before you purchase.

Some companies will refuse to cover modified vehicles full stop. If you have an accident whilst driving one you may in fact be breaching your cover and end up with an increased premium or a voided policy. Other companies will cover you but for an extra premium – this could depend on the amount of your business involved with “mods” for instance.

Some companies will cover some mods but not others! This can be tricky so if in doubt always ask. Certain modifications (eg alloys) are generally considered more benign than others (eg roll cages and performance increasing or structurally changing mods).Generally – what would scare your private motor car insurer may scare your motor trade insurer.

While certain insurers may cover your modified vehicles with normal policy cover others may only cover you for third party indemnity. This means that if you drove a customer’s modified vehicle, on your comprehensive policy, and crashed it then you would not be paid out for the damage (except to the third party of course). So be aware that you could end up with a bill that your insurer will not cover depending on policy terms!

There is much more to this subject than what we can cover here, so please remember to ask your broker about the conditions on their motor trade insurance policy when it comes to modified vehicles and you.

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Cheaper Motor Trade Insurance With a No Claims Discount

Tuesday, July 13th, 2010

Most people know that it is possible to get reductions in your premium for a private car policy the more no claims bonus you have. However, some people within the industry may not be aware that you can also get reduced costs for you motor trade insurance via the same means. Your discounts will work similarly whether you have a trade policy or a private policy – we have outlined some of the main points below.

If you are only just moving on to a traders policy then it is possible that you can add your no claims discount from your private policy. This can be applied without affecting your personal policy so it is always worthwhile looking into this as an option. In terms of the amount of discount, you can generally get up to 5 years no claims bonus but this may differ between insurance companies. The actual discount will obviously depend on the number of years bonus you have. It is possible to get large discounts if you have the full 5 year no claims, even as much as 65% could be taken off!

Similarly to a private policy, you can sometimes protect your no claims on a trade policy. However, if you make a claim and then switch insurance providers then the new company may not take the protection into account. If you don’t protect your bonus then in the event of a claim your no claims will either be stepped back a couple of years or reduced back to zero.

No matter whether your bonus has been accrued on a private or a traders policy, you should still usually be able to apply the discount to a motor trade insurance policy. With the potential to take a large chunk off the price of your premium, it is even more of an incentive to do all you can to make sure that you don’t end up making a claim.

Think Insurance – Quality, Service and Price

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A Selection of Top Tips to Get the Right Motor Trade Insurance Policy

Thursday, July 1st, 2010

Nobody likes paying for their insurance premium, whether it is for their home, car or travel, but it is one of those things that just needs to be done. This is certainly no different when it comes to paying for your motor trade insurance. However, if you go about things the right way and spend a little bit of time finding the right policy then you can reap the rewards. Below we have highlighted some top tips for you to ensure that you are getting the best deal possible.

One of the most important things is to make sure that all details that you give to your insurance provider are correct and up to date. You may think that it is a good idea not to disclose information just so you get a slight reduction in your premium but doing this can be costly. If you end up needing to make a claim and the insurance company find out that you have provided them with false information then your insurance could  be invalidated and you could be left to foot the bill.

If you have got any no claims bonuses, whether on a private or traders policy, then you should be able to get a reduction in your premium. You may have thought that your private policy would not have affected a traders one but there is a good chance that your insurance provider will still take that into account. It is therefore always advisable to check with the company because you may be eligible.

It is not always a feasible option, but if you can afford to pay for your insurance in one lump sum then it will usually work out cheaper. Obviously this means forking out a large amount initially but doing this means that it is done, dusted, interest free  and out of the way.

When you are looking for a traders policy, it is always a good idea to try and find a specialist company. If you can get an insurance broker who specifically deals with motor traders then they are more likely to get you a better deal. This is due to them having the knowledge of the market and being able to tailor your policy to suit your needs. Their specialisim also means that they have negotiated better details with the insurance companies – which in turn means cheaper rates for you.

Obviously there are other factors to consider when looking for the right motor trade insurance policy but if you follow the guidelines above then you should find that you will end up with a much better deal all round.

Think Insurance – Quality, Service and Price

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Will My Motor Trade Insurance Cover My Other Business?

Friday, June 25th, 2010

An often asked question is whether or not you will be covered on your Motor Trade Insurance policy to carry out your other occupation. Whether a builder, an accountant or an estate agent you “can” be covered on a trade policy.

It is a common mistake to think that you will be covered automatically for this use on your policy without paying an extra premium or requesting it from your broker. Additional business use, as it is called, means that you can travel to and from different places with regards to your primary, or secondary, occupation. This is as opposed to someone that just needs to go to and from one permanent place of business – eg an office worker or a shop assistant

If you do not have the cover on your policy but try and get away without it then you could find yourself in some trouble. For instance, if you are stopped by the police in a van carrying tools for your work then you may find that they ring up your insurance company to see if you are covered. The insurance company will then inform them you are not. This generally leads to court, a fine and a six points. In a more serious example, i.e a claim, you could find out that your policy will be voided by your non-compliance and you are left with a mess.

Additional business use can be added to your policy from as little as 5% of your total insurance premium. Eg on a thousand pound premium you could pay just fifty pounds extra. That seems to me to be extraordinary value for money when you consider that a commercial van policy on it’s own for a builder could not be bought for anywhere near that figure.

So the question is, if you require cover for your other occupation and you also need cover for your trader work, can you afford not to add Additional Business to your Motor Trade Insurance policy?

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Renewing Your Motor Trade Insurance Policy

Tuesday, June 8th, 2010

When the time comes for your motor trade insurance policy to be renewed there are a number of things for you to take into consideration. Renewal time can lead to savings on your premiums if you go about things correctly, it is also the time when you should make sure that all details are fully up to date.

You should always be looking to find the best quote available rather than just accepting the renewal quote sent through from your current provider simply because it is more convenient. Even if you want to stay with the company currently providing your cover, the likelihood is that you will be able to get a reduction on the amount they originally quote. If you use a broker to get a quote then you can at least go back to your existing company to see if they can match or even better the quote you get. You should also check which added extras are currently on your policy, if you have got things on there that you don’t actually need then there is no point in paying the additional costs to have them.

In regards to the details that the insurers have for you, it is imperative that you supply them with fully up to date, factual information. Failure to do this could mean that if you do actually have an accident or need to make a claim, the provider may refuse to pay out or charge you an additional premium because the false information has invalidated your policy. Any change of address, circumstances  or driving convictions that you have had must be given to the company to make sure that the policy is correct. Of course, doing this may mean that you end up having to pay a little extra on your premium but that is by far better than finding out you cant claim when you need to.

To sum things up, your motor trade insurance renewal is the time for you to make sure not only that you are getting the best value for your premium but also that your policy is valid by confirming all of the correct information.

Think Insurance – Quality, Service and Price

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Types of Motor Trade Insurance Policies

Tuesday, June 8th, 2010

If you are working within the motor trade, whether you are a mechanic, a salesman  or a valeter, then you should be able to take out a motor trade insurance policy. The biggest difference between a traders policy and a private car policy is that with trade cover, it is you who is specified on the policy whereas with private cover the vehicle must also be included. The benefit of this is that it means that you only have to take out one policy that can cover you to drive  vehicles you will need to use for your business, including those of your customers (This is always subject to terms and conditions of course!). There are a number of options available for your traders cover and you need to make sure you choose the correct one so that you get the best value for your money.

Road Risk Cover

This form of policy will provide you with cover for  vehicles that are both owned by the business and those that the business has in their possession for work purposes. It will not always provide cover to drive any car at any time so you need to be careful in regards to the vehicles you use under the policy .

Liability Cover

If your business is ever going to involve your customers coming to your place of work, it is important that you consider public liability cover. Taking this out means that if someone ended up having an accident or injuring themselves whilst on your work premises then you would be covered for  claims that they make against you. Without this, you could be hit hard financially when that customer takes you to court over the fall they had in your workplace. A second part of this cover is sales and service  – this covers you against defective workmanship that may later lead to a claim. An example could be a fitter claiming on his policy if his work has caused someone to blame him for the tyre coming off and causing an accident.

Combined Cover

As the name suggests, a combined policy can bring together the benefits of the other policies as well as adding extra areas of cover. Together with road risk and liability cover, you can also be covered for  damage to buildings, stock of vehicles , your equipment, machinery , tools and much, much more.

These are just some simple distinctions between these commonly mentioned types of cover so you therefore need to make sure that you carefully consider what it is you require. Your particular business may have no need to take out a combined cover policy  and so a cheaper, less complicated road risk one, might be more suitable. On the other hand, if your business would benefit from more cover and you choose not to take it out then you could suffer the consequences further down the line. We would therefore advise you to do sufficient research before you decide on what motor trade insurance policy you are going to take out. An obvious avenue for help should be your insurance broker who can help you decide what you need.

Think Insurance – Quality, Service and Price

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