5 Myths about Motor Trade Insurance
MYTH 1: You cannot transfer Private Car No Claims Discount to a Traders Insurance
Wrong – Many Motor Trade Insurance policies will allow introductory discounts equivalent to any no claims bonus you may have earned on a Private Car or Commercial vehicle, which is often in excess of 40%. Subsequently you can also look to include Protected No Claims Discount in the same manner offered on private motor insurance. A specialist Motor Trade Insurance Broker can compare policies for you to tailor a policy to your specific requirements.
MYTH 2: You need to be a full time trader with premises to purchase Trade Insurance
Not True – Specialist motor trade policies are now available for part-time traders working from home. There is also no requirement for a full time trader to have premises, insurers have adapted to the modern world understanding that mobile valeting, tyre fitting and mechanics are now in high demand as customers’ lives become busier and busier.
MYTH 3: I have a van or car policy with comprehensive cover, this provides me the ability to drive any other car so I don’t need Motor Trade cover
Wrong – Some comprehensive private car policies will provide what is known as a “Driving other cars” extension. However, the policy will exclude motor trade use and cover is restricted to third party only. If you are self-employed and in the motor trade you will normally need road risks insurance to cover both your own vehicles and any customers vehicles or other vehicles which you need to drive in connection with your business. Specialist policies are also available for part-time motor traders and cover can often work out cheaper than trying to cover your own vehicles plus the one or two vehicles which you are holding for sale.
MYTH 4: Motor Trade Road Risks Insurance covers theft of vehicles from a forecourt or premises
Wrong – A Road Risks policy does exactly what is says on the tin, covers your road risks. Even a comprehensive or third party fire and theft traders policy will exclude theft or damage to vehicles at or in the vicinity of trade premises. If you own premises you can either add or arrange separate cover for vehicles stored at this address.
However, just to confuse matters further, if you work from home your road risks insurance will provide cover for vehicles providing that it is your place of residence.
MYTH 5: In the Motor Trade and under 25 – you cannot obtain traders insurance
Not True – Whilst some mainstream insurers will shy away from younger drivers, it is possible to cover policyholders or named drivers via a specialist motor trade policy for drivers under 25. You may see terms implied such as a higher excess or restriction on vehicles driven, but your business insurance broker will discuss the various options available.
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About the Author
I’m passionate about family, sport, technology and business.
In fact, I have always been fascinated by business, whether it was running the school tuck-shop or my Saturday job in the local store, I was always looking for ways to improve or view things differently.
I have enjoyed an amazing career fast approaching 25 years in the insurance industry, which has given me real insight into the challenges and opportunities faced by SME businesses in today’s ever-evolving marketplace.
I co-founded Insync Insurance, to offer companies a new way to buy and manage their business insurance. A synergy of digital servicing and personal expertise - utilising the latest technology to enhance relationships, not to replace them.