Car Valets need Motor Trade Insurance too.
November 15th, 2011There has been over recent years, an increase in business start-ups in car valeting and mobile car valeting. Those new to the business may wonder whether car valets need motor trade insurance. Some ambitious individuals or groups of individuals may set up their own enterprise whilst others buy into a business franchise – offering opportunities to run their own potentially lucrative local valeting business with start up packages and `ready made` business solutions (such as branding, promotions, policies and procedures etc). Despite this growth in numbers, many such enterprises do seem to be heavily used, with long queues of motorists soon developing at most outlets. In the UK, there are over 30 million cars on the road, with most families having two cars, and the average
motorist covering around 12,000 miles per year. There is likely to be a good business case for further growth in the car valeting business over many years to come and the answer is yes, car valets will generally need Motor Trade Insurance.
Car Valets may on occasion need to be able to drive a customer’s vehicle from one place to another, or deliver it back home. Because of this most car valets need to take out motor trade insurance to cover the value of the vehicles they are driving. Indemnity is the maximum value of payout you will receive from any fault accident or theft (non-fault claims can payout more under the right circumstances). Car valets can have an insurance policy that covers their own personal vehicle at one value and customers at another (higher) level – this is called a split indemnity and is generally cheaper than just having one high level of cover.
If you are considering operating in this industry then you may wish to explore commercial vehicles as well as the domestic market. Some valet services targe the industrial units in their area and include special offers such as 4 cars for the price of 3 & 8 cars for the price of 6 etc. Taxis, coaches, hire car fleets, and undertakers can also help grow the business – volume can grow profitability
Indemnity on motor trade insurance is often set at stepped levels – usually starting at £2,500 and ending up to £40 or £50k. The higher you go the higher the cost so don’t forget to ask for a split indemnity quote from your Motor Trade Insurance Broker.
Don’t expect a DAB radio in your new car just yet
November 14th, 2011If you are in the market to buy a vehicle, don’t be surprised if you don’t find a digital radio in many of the cars at your local motor traders forecourt.
According to research carried out by Auto Express, half of all car manufacturers surveyed (24 in total) will not be including digital radios in their vehicles.
Despite government plans to have the analogue radio network turned off in 2015, car manufacturers have chosen not embrace the new technology. In 2011, 60% of new cars registered had no option for the DAB radio to be used.
RAJAR (audience monitoring company) claim that just 18% of all radio listening is carried out using digital radios. This could be bad news for the plans to switch over in just 3 or 4 years time. For the switchover to happen successfully half of all radio listening has to be through DAB radios and the coverage must reach 98% to match the current FM figure. Currently many brands are choosing not to go digital for fear of poor coverage.
Perhaps this is why so many carmakers are choosing at this stage to steer clear of digital radios. A spokesperson from Audi comments, “We’ve had negative feedback from customers about poor digital radio coverage. If the broadcasters get the transmitter infrastructure right, then it would be a totally different ball game”.
Many experts have speculated that the government plans will have to be pushed back to ensure the coverage targets are reached before analogue can be turned off altogether. Others predict we will continue to see digital and analogue working side by side for the foreseeable future.
Features editor at Auto Express has concerns about the lack of buy-in currently being demonstrated by the motor industry, “If the Government can’t even persuade the motor industry to back this new technology, how is it going to convince cash-strapped motorists to get on board? Maybe it should put its money where its mouth is, and subsidise the digital switchover by dipping into its fuel duty coffers”.
If the analogue radio network is switched off in a few years time as planned, nearly all of the car radios work literally stop working overnight, so lets hope things drastically improve between now and then, or the roads could be a very quite place!
This article was brought to you by Think Insurance, specialists in Motor Trade insurance.
What if I need part time motor trade insurance?
November 11th, 2011For many of us the recession, with it’s increased fuel costs and the rise in living expenses, has made it necessary for us to look at other ways of earning a second income. For some, the recession can be an ideal time for starting a new venture; for others an increase in income may demand working longer hours in their current job. Another group of people will turn to the motor trade for extra revenue. If this is the case they may ask the question “Do I need part time motor trade insurance”?
Sorting this out may seem like a mine field for a person who wishes to sell cars from home on a part time basis, or from a forecourt. You may be expected to take people out for a test drive, and repair the cars on your property. Perhaps you will choose to valet the cars yourself or employ someone else for this role? To try and work out the correct level of cover you require, and the type of policy you will need, is exactly what your insurance company should be willing and able to advise you on; taking the pressure off yourself, and giving you peace of mind.
Although you may only be trading on a part time basis, a reliable and responsible insurance company will not penalise you, or take you any less seriously than a full time motor trader. Some companies may prefer full time cover only, and leave the part time traders high and dry. Choosing a company who has advisors for this specialist area is vital for anyone considering selling cars, and repairing or valeting cars, on a part time basis.
The cover you may need to acquire can be anything from public liability to demonstration cover; depending on exactly what you and your business need at that time. There are many policies for many purposes, and provided you make your requirements clear, then the insurance broker will be happy to explain exactly what is involved and provide appropriate cover .
Policies for the motor trade – brief guide
Third Party
Covers any damage caused to other peoples cars if you are involved in an accident, but does not cover any damage to your own vehicle.
Third party fire and theft
The above, plus loss and damage caused by either fire or theft of your car.
Comprehensive cover
All of the above plus cover for the damage to your own car.
Liability insurance
For motor traders who are receiving customers into their places of work -this can include garages and any other work premises you are trading from.
Combined insurance
For traders who are generally working from business premises. An more extensive policy.
Effective motor trade insurance – always best policy.
November 11th, 2011If you are involved in the motor trade or a business that is part of the motor trade, you must have an effective motor trade insurance policy which provides you with adequate cover should problems occur. Each business is different, will have a different set of circumstance and you will find that a variation of policies have been created to best match your activity. Any business or sole trader will need to think carefully about their activity and which specific aspects of motor trade insurance will need be considered. You should be able to count on the support and guidance from an insurance broker who has experience in this field and therefore will be able to offer you effective advice – which could in turn save you a great deal of hassle should the worse happen. It makes good sense for you to consider this guidance but it also make good sense for the insurance broker to find you a good deal. It can enable you to strike up a partnership which can respond to your needs should your business activity change or grow throughout the insured period. You are legally bound to inform them of any changes to your business that may affect your cover and it’s your responsibility to do this promptly.
Each individual policy will be different depending on the nature of cover required – from Road risks only, to liability to a full Commercial Combined. Each one of these will have varying levels of cost and their own advantages or disadvantages.
Businesses involved in the motor trade cover a broad spectrum of different motor trade businesses. Activities could involve the trading or repairing of vehicles, valeting of vehicles or even simply moving vehicles from one location to another etc. Bearing this in mind, it’s important you don’t end up paying extra for cover that is not specific to your motor trade business and to be guided by a specialised motor trade insurance broker is always best policy!
Many customers have Third Party policies that can be include Third Party Only or Third Part Fire and Theft. This type of insurance is the minimum cover and is required by law. Comprehensive Policies add to the Third Party insurance to cover accidental damage. Individual / sole traders will be looking at which of the above would best suit their needs but if business activity is more advanced further cover may be required.
A Liability Insurance policy covers the general public visiting the premises and can also cover a proposer for any liabilities regarding work they have carried out. You can then also add employer’s liability – a legal requirement for employers.
There are three sub sections of the Liability insurance policy and it’s important to discuss with your broker which is best for you; Employers and Product, Public and Sales and Service Indemnity.
For those companies involved in larger scale motor trade activity, there is a Combined policy that can bring together all the types of insurance discussed in one convenient package. So, in order to feel confident that you have secured the most effective motor trade insurance – it’s always best policy to seek advice and guidance from an insurance broker who specialises in this area.
Vauxhall lifetime warranty here to stay
November 9th, 2011Last year we saw the introduction of the lifetime warranty from car manufacturers Vauxhall and Opel. However, last week Opel announced that they have withdrawn the offer.
Opel have chosen to offer the standard manufacturers warranty to customers instead, although it will be possible to extend the warranty at an extra cost.
Interestingly, Vauxhall, Opels sister company will continue to offer the lifetime warranty for its customers, claiming it is one of the main reasons why people now decide to purchase a Vauxhall vehicle.
In the past the lifetime warranty has come under fire, many criticising whether it truly meant a ‘lifetime’. The warranty actually lasts until the car reaches 100,000 miles. In the early days this only applied to the first owner of the car, but since then the Vauxhall Network Q dealers now also offer the same warranty to customers, providing the car is less than one year old, and has less than 30k miles on the clock.
This should please anyone in the market for a new or nearly new Vauxhall model, a lifetime warranty will provide peace of mind and reassurance for customers, especially in the current economic climate.
A Vauxhall spokesperson confirms in a statement, “The Vauxhall Lifetime Warranty is 12 months old, and is now an established Vauxhall brand value. It is important to Vauxhall customers and has a positive bearing on their purchase decision – Vauxhall has no intention to withdraw from its lifetime warranty.”
This article was brought to you by Think Insurance, specialists in Motor Trade Insurance.
CAP Black Book App
November 7th, 2011Motorists in the market for a used car can now download a handy new app onto their smartphones to allow them to look at vehicle valuations while standing on the forecourt.
This clever new ‘Black Book’ app was developed by CAP, one of the market leaders in vehicle valuation data. CAP already provides vehicle information to many businesses in the automotive industry including insurance companies and retail groups. Now this information is available to motorists at the touch of a button.
Motor traders and car dealerships should now expect motorists to have more information at their fingertips than ever before. Negotiations on price could become much tougher now that drivers can access the Black Book data while they are viewing a motor.
Drivers with an iPhone, iTouch, iPad and Google Android smartphones can download the app, and providing they have a phone signal, or Internet access, can do their homework before they decide to buy.
The data available to motorists includes retail used car valuations at various mileage points, market commentary and information on the insurance group that a particular vehicle might fall into.
This invaluable information will be updated monthly, in line with the printed and online Black Books being released. Motorists will be more informed when browsing the forecourts than ever before.
Garrath Hussey, Chief Executive at Think Insurance, comments on the new application, “This clever new app really gives the everyday motorist extremely valuable and up to date information to help them to make an informed decision when buying and part exchanging a used car. Negotiations between customers and motor traders will become more transparent, and customers will feel reassured that they have got themselves a good deal”.
Buying a car from relative could cost you more
November 4th, 2011If you are thinking about buying a car from a relative, it might be worth thinking again before you close the deal. According to research from the Trusted Dealers website,purchasing a second hand vehicle from your nearest and dearest could be more hassle than its worth, and could end up costing you more in the long run.
Many drivers who have opted to buy a car from a relative are under the impression they would get a better deal than if they went to their local motor trader or car dealer. But, according to the survey more than 65% of people felt that buying a car from someone in the family is the more expensive option, in the long run.
A significant 42% of people surveyed had agreed to buy a car from a family member in the hope of saving some pennies. Sadly 67% of those have been unhappy with the purchase. 45% of those surveyed discovered the vehicle had mechanical issues, and 15% felt they had paid over the market value for the car.
Neil Addley, Managing Director of Trusted Dealers, comments, “The particularly alarming figure was the high percentage of cars that ended up costing buyers more than they expected in the long run”.
Garrath Hussey, Chief Executive, also comments on the latest survey, “Buying a car from a friend or relative can often turn out to be a false economy, as the research has shown”.
“One of the main problems is that you really have no come back if something goes wrong with the car once you have driven it away. Unless you are willing to thoroughly check out the mechanics of a vehicle, and carry out research into the true market value, we would always recommend you visit your local reputable motor trader or car dealer when the time comes to invest in a second hand car. Not only should you get some sort of warranty, you will also have the peace of mind that the car has been checked over and is safe to drive away. Plus, it’s much easier to haggle on price with a motor trader”.
Business use vehicle insurance – to buy or not to buy
November 4th, 2011The majority of car insurance policies will only cover your car for ‘social, domestic and pleasure’ and commuting. If you intend to use your car for anything business related such as attending business meetings or running errands for a boss then it is likely that you will not be covered by a normal car insurance policy and for this you will need specific business cover. I spoke to someone who has recently added ‘Private and business use’, which will cover you for personal use and commuting as well as business use.
“I was teaching at a college of drama and performing arts and for the majority of my working life I left the car in the staff car park until it was time to drive home. I never did feel the need to include business use insurance, as this would have increased my premium unnecessarily.
When for example, on occasion I had to visit the nearby university or to travel over to the theatre to visit colleagues who were helping me with a student project etc, I never felt this was substantial enough to need business insurance. It wasn’t until one such occasion, that I was involved in an accident (a car crashed into my side door – no one was injured but I needed a new door and it was clearly the other drivers fault who pulled out without looking) I began to feel the dread of a looming issue regarding my claim! The accident had occurred during my work hours and at a point where I was driving between different work locations. Whilst I eventually did manage to sort out the situation, it wasn’t easy and I have since considered occasional business use, an essential expense.”
There are over a quarter of a million road traffic accidents and 300,000 road related casualties in Britain every year and it is said that between 25 and 33 per cent of serious accidents involved a victim that was ‘at work’ at the time. So ensuring your vehicle is appropriately covered should be a priority. In Britain you must, by law, have third party insurance, which covers your legal liability for injury to others, and damage to their property. In addition to this basic level of cover policies typically include a fire and theft provision cover. Alternatively fully comprehensive cover will cover you against all damage to your vehicle. The cost of all this will be relative to a number of factors for example, the history of the driver, the make of car, and the location where it usually is kept etc.
There are some additional considerations to bear in mind if you need business use insurance. If you use your car for work, as well as for personal trips, then you need to make sure that your insurance certificate covers both types of usage. So, for example, if your policy only covers ‘social, domestic and pleasure’, you will not be insured when using your vehicle for work purposes. If you want to be insured to drive your car for business use, you are going to need to make sure your policy is extended to include the appropriate levels of insurance.
Class One and Two business vehicle insurance will cover you for most business use, with the exception of ‘commercial travelling’ which is defined as travelling from place to place in search of custom, but each insurance company will have its own exact definition. If you do need cover for commercial travelling your policy will have to be increased to Class Three.
Remember that if your employer ‘asks you’ to use your car to travel whilst at work, then you will need to consider upgrading your insurance to cover this (some particularly supportive employers may be able to support you should you need to upgrade your cover to include business use). Remember that no matter how infrequent, if you drive whilst at work and in connection with your work, then effective insurance cover for an accident that occurs at that moment will need to include some form of business use insurance.
Motorists of a certain age
November 4th, 2011With the age of population increasing and more and more people remaining fit & well into their retirement, there is an increasing need to consider the most appropriate insurance support for this important group of people. It would be useful for many folk nowadays to consider how to get good deals on motor insurance and whether or not any particular health issues can affect the premium or type of insurance to get.
Helpful tips for those of us of a certain age
If you are fit and well and still feel confident behind the wheel, then why not enjoy your motoring for years to come rather than use the car just to get to and from work. You may be lucky enough to be able to use the time to visit friends and family or explore parts of the British Isles you have always wanted to see but never had the time. If your motoring history has been relatively accident free then you ought to be able to secure some excellent deals.
Depending on your financial position, then the usual choice over fully comprehensive versus third party or third party fire and theft insurance, could be your first decision. Third party insurance is still mostly cheaper than fully comp, but it could cost more in the
long run so it’s important to consider the pros and cons. For example, if you are involved in
an accident with a driver who happened to be uninsured, you could end up paying the repair
bill even if it is not your fault.
You may be lucky enough to have saved and purchased a car you have always wanted, which you plan to enjoy all through your twilight years and if so, you’ll want to be sure that your treasured possession is suitably covered. Whatever you decide, you may want to spread the cost of your insurance payments, by paying in instalments.
If you do have a medical condition and you are not sure if this could affect your insurance then it’s always best to contact the DVLA as well as your insurance company. If you develop a medical condition that impairs your ability to drive, you may find yourself not insured as well as facing a fine. It is your responsibility to refer yourself to your doctor if you are at all uncertain, as ignoring any issues associated with your health and ability to drive safety will obviously place you and others at serious risk.
It’s good to know though that for many motorists of a certain age, their experience of driving can increase after leaving work, utilizing their time for leisure and hopefully steering clear of the rush hour traffic!
Non legitimate motor trade drivers
November 1st, 2011As younger drivers mature and manage to clock up several years (hopefully) of accident free motoring, they should expect to be rewarded in reduced premiums.
For those people requiring motor trade insurance, its important they get proper cover and specialist providers will be able to advise accordingly – but for those ‘none’ legitimate (none motor trade) drivers who are tempted to take up motor trade insurance in order to try to secure a cheaper price, buyer beware!
Many motor trade providers are now asking for trading invoices in order to verify authenticity when receiving an actual claim. There are many ways of checking legitimacy of claims and routing out fake documentation with drivers facing possible driving bans and points because they have been caught driving without the appropriate insurance.
It is perhaps rather surprising that despite the invention of airbags, seatbelts, antilock brakes and many other improvements to cars which are meant to keep us safe, traffic deaths aren’t really much lower than before such inventions emerged. By the very nature of such safety features, some drivers seem to develop a false sense of security in their vehicles and can as a result develop some poor driving habits. The sought after status of driving high performance vehicles, capable of great acceleration speed as well as attracting the attention of car thieves who steal to order, is also contributing to increased premiums for younger, less experienced drivers.
It’s easy to see then, why insurance premiums for younger drivers are increasing, compounded by the growing problem of drivers who are uninsured. It is estimated that about one out of every 20 motorists drives without cover, which costs every driver roughly an extra £30 a year. Uninsured drivers are five times more likely to be involved in road collisions, to fail to comply with other road traffic requirements, and to be engaged in other criminal activity, according the Motor Insurers’ Bureau (MIB). One in five uninsured drivers fails to stop at the scene of an accident they have been involved in. Motor Trader Insurance it is not designed for individuals who are struggling with getting affordable insurance cover for higher performance cars and Insurance providers have become wise to this.
To qualify for Motor Trader Insurance, drivers must have had a Full UK or European driving license for a minimum of 12 months and should be at least 24 years old.
Performance related restrictions typically apply to those below the age of 25 (this is when it is even possible to cover them – most insurers now only quote for over 25s!), limiting the engine size and use of turbos or high performance cars etc. based on age, with under 21s struggling to get above 2 ltr petrol; no turbos etc. Of course, essentially, the insured person must be a legitimate motor trade worker and be able to, if ever making a claim, provide evidence as such!