Necessity Of Motor Trade Insurance

More cost effective than the private car policy

A motor trade insurance policy is cheaper than the private car insurance policy. A trader’s policy covers a number of vehicles under the same policy, thus making it more cost effective. A private car insurance policy only covers one car at a time. For motor trade owners who deal with a large fleet of cars owing to the need of their business, taking a private car insurance policy for every vehicle is not only expensive, but impractical too. Moreover, insuring multiple cars will not cost you extra. Motor trade insurance policy offers a lot of indirect monetary benefits also. Since it covers both the driver and the vehicle for risk on roads like accidents, you can allow your customers to take a test drive without the worry of having to pay for repairs, if any. This will lead to an increase in sales and thus make the business more profitable. Further, since the policy covers all the cars in the fleet, you can allow the test drive option on all the cars without fear of monetary loss.

Allows you to make changes in the vehicle without having to pay extra insurance charge

One of the biggest disadvantages of a private car insurance is that you have to pay extra premium every time you change your car or make modifications in the car. With motor trade insurance, you can make any change in the vehicles in your business at no extra expense. Moreover, the motor trade insurance policy allows you to use your business cars for private use, as long as they are not intended for another business. This may increase the premium amount you pay slightly. However, if you do not intend to use you business cars for personal use, then you can mention it in the terms of the policy and obtain a cut in the monthly premiums.

Covers a multitude of risk factors

Being in the motor trade business puts a trade owner in a constant state of worry owing to the increased risk factor in the business. Risks run high for the vehicle, employees, the customer and any third party that might be unwittingly involved in the accident. The policy covers for damage occurred to the vehicles or customers in the business premises or in the customer’s premises. A motor trade comprehensive insurance policy is the best cover to have since it includes a wide range of factors. Every company has a different set of factors that their comprehensive policy covers. So a motor trade owner can go through the quotes of different companies and purchase a policy that is all-inclusive. This is a far more economical option than having to buy a different policy for each type of cover.

Saves money and worry in times of accidents

A motor insurance policy saves a lot of money for the trade owner in times of accidents. Although a motor trade owner might be able to pay for the damage to the vehicle or the customer, he will have to bear a huge monetary loss. A motor trade policy helps the trade owner by paying for the damages and thus, keeping the business of the trade owner from getting affected.

Covers the owner as well the third party

The best part about motor insurance policy is its comprehensive cover. While a private car policy does not cover a third party liability, a motor trade insurance does so. It covers for damage to the third party that may be caused due to theft, fire breakouts, or accidents. It also pays for the damage caused to the third party due to the negligence on behalf of the motor business management.

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