Here is one thing to clarify: road risk and motor trade policy are the same. It involves you driving other people’s vehicles just for the sake of your business. In the UK, motor trade insurance is necessary if the entrepreneur or businesses belong to the automotive industry. It’s necessary to compare motor trade insurance for your ease if you are a garage owner, mechanic, motor trader, or car dealer, this insurance policy protects your business, customers, and vehicles.
You must be thinking about getting motor trade insurance for any car. The answer is no because some rules are linked to driving a car whose owner is other than you! Since it is not your official vehicle you have to be careful about the rules like who can drive the car on motor trade policy.
However, if you are a taxi driver or run a pick-and-drop business then do compare taxi insurance quotes online as it is an ideal option in this busy era. You can look at Money Mega Mart to avail the number of insurance quotes.
Who Can Opt For Motor Trade Insurance Policy?
- Valeter, if you need to move a customer’s car,
- Tyre-fitter, who must drive cars onto a ramp to change tires
- Driver for a vehicle delivery service or a repair shop
- Motor Trader, sales and purchase of cars.
- Vehicle Mechanics, need to drive vehicles for testing or fixing issues.
Though it’s not extensive, it sends a clear picture of what the profession requires in this motor trade policy!
Ease of Having Your Car On Coverage Policy
The majority of motor dealers will include their own privately owned automobiles on their motor trade coverage. Additionally included are any cars you own as part of your firm, such as a delivery or recovery truck.
When you place your vehicles on your motor trade coverage, you usually get both business and personal use (aka social, domestic, and leisure).
Other People Can Easily Drive Your Car
Insurance should be imposed on both the car and the driver, if either one of them lacks the policy, then no one has the legal right to drive. Hence drivers eligible for this criteria need to be above 25 along with three years of residency and a driving license in the UK.
On a motor trade policy, an unnamed driver cannot operate your vehicles, so make sure you keep covered and add them. After all, this is one of the blunders that can result in the cancellation of motor trade insurance.
If you just have private insurance on your automobiles and they are not covered by your motor trade insurance, anyone else who wishes to drive them must be a named driver on your private policy. This will benefit you when holding a business related to renting a taxi. Thus compare taxi insurance quotes online for a better view of the policies.
Avoid Using Friend Cars
The other cars have their insurance for the business covering the names of specific drivers. Then you, being not listed in their policy, cannot drive the car. On the other hand, for instance, as part of your business, you have to drive them to their location in their car, then you should inform the insurer about this. Further, your policy should cover this.
Significance Of Motor Trade Policy
Safeguarding Your Vehicles
Enviously the main reason behind opting for this insurance policy is to protect your vehicle against any loss due to damage, theft, or fire. Otherwise, you would be having a great financial loss. If you are a mechanic, seller, or buyer this policy protects your assets and gives you peace of mind even in unexpected accidents.
Third-party- public liability
If a customer suddenly came across your fast-moving car and got hurt, then obviously you are responsible for that. Similarly, if some property or other vehicle gets damaged by your car then you need public liability insurance. It gives coverage to third-party losses and can save you from paying huge bills at the time of the incident. Usually, nobody has savings kept for emergencies where there is an utter need for income to support. Thus, it’s necessary to have insurance to prevent expected financial and legal consequences.
Equipment, Tools & Stock Coverage
You will be amazed to know that the motor trade policy also covers your basic mechanical instruments and tools. Though they are small and have less value than other assets, still you will get ease in getting new or repaired tools automatically. Also, these are small yet require a part of your income to get it into your hands. This coverage is especially important if you work as a mechanic or provide car service.
Employer’s Liability Insurance
Being a motor trader entrepreneur, you must have recruited employees as well to keep your work going. Hence, you are responsible if they get wounded at your workplace. You must adhere to providing them with the insurance to cover the loss. Moreover, it is a legal requirement in the UK. This coverage will protect you against the claims made by the staff working under you. Depending upon the loss, it delivers medical assistance and expense, recovery of wages, and income for potential costs due to the damage at the workplace.
Following Legal Requirement
Living in the United Kingdom, it’s a legal requirement for you to have motor trade insurance if you belong to the automotive industry. Not having official coverage can result in major legal consequences, fines, and ultimately the closure of your business. Thus, again you can encounter great loss of your precious asset and even abandon your way of earning. Make sure to have this cover for the protection of your business and customers while ensuring to catch-up with legal compliance.
Wrapping Up The Blog
By reading the blog, we get to know that it is mandatory to wear the motor trade policy in the UK. You have to open your eyes to view the minute details of the insurance for allowing your employees to drive your car. Thus you have to compare motor trade insurance policies and rates that comply with your business. Also, there is a list of coverages under this policy that cover the loss for specific aspects.