The motor trade industry is a highly competitive industry. It is important to get the right insurance policy for the best price available. We realise that each business is unique and there are different needs for every consumer. This applies to all types of customers, whether you’re new to the field or already experienced and know exactly what to look for.
Customers from different business sectors may be unsure on what you can and can’t be insured for, as specialists in motor trade insurance, we hear all types of questions when customers call for a new quotation. With this in mind, we would like to explore with you, some of the myths we hear to assist you in avoiding any potential problems when you’re getting a new quotation for a motor trade insurance policy from someone like Utility Saving Expert.
1: ‘It will be cheaper if I leave some drivers off my motor trade quote’
This isn’t recommended, but it may be true in some situations. You could be in trouble with law enforcement, if you are an employer that chooses to drive one of your vehicles and are caught without the right cover. If you are involved in an accident, you will not be allowed to make a claim for any damage to you or your customer’s vehicle. The third party involved in the same incident could make a claim against your business policy, along with any monetary loss, this can be a headache when you are tasked with a business to run. It is important to remember that by law, you are required to have employer’s liability insurance if you hire someone to carry out work for you. This covers both unpaid and paid work. Any potential claims against your business that may come from an employee illness or injury will be protected.
2: ‘As a part-time motor trader, I will get a cheaper insurance quote’
This will not always make your quotation any cheaper in comparison to a full-time trader if you work part-time. You may be able to be covered for business use if you have another occupation, so consider declaring this when you are retrieving a quotation online or over the phone.
3: ‘I’m going to make the assumption that a cheaper insurance quotation will be better for me’
Please do not declare your vehicle’s overnight location incorrectly, it is paramount that you don’t omit key information. Personalising your quotation will affect the quotation price but ultimately will give you the right cover to meet your business needs and avoid any associated risk factors. In the event of any compensation claim or legal action taken against your business, public liability insurance will provide additional cover against a third party. It is recommended to have this in place, although it is not a legal requirement.
4: ‘Trading from my home address will give me a better quotation’
If you are trading from a busy or highly populated city or town you may find that your insurance quotation is more expensive because it may be considered a higher risk area. Getting a quotation for trading from your home address is possible. We recommend that you state both your home and business address to get the appropriate cover.
5: ‘I assume that I will be covered to drive any vehicle with my motor trade quotation’
Any vehicle that is in your custody, care, registered or owned by you can be covered for motor trade purposes.
6: ‘It isn’t necessary that I add vehicles to my quote that aren’t used often’
It may be tempting to leave off vehicles that aren’t used very often, these will not be covered under the motor trade policy. You can be fined up to £5,000 and have your vehicle seized if it is not on the motor insurance database and is caught by any type of automatic number plate recognition system. Additionally, you will not be covered for loss or damage if the vehicle in question is involved in any incident. Remember to remove your vehicle from the motor insurance database immediately if you sell your vehicle. Failing to remove the vehicle from this database will make you liable for any third-party damages, leading to the loss of any no claims bonus you have built up.
7: ‘My personal no claims discount (NCD) won’t be transferred to a motor trade quotation’
You may be able to gain an introductory discount, but it is not transferred. A private NCD can be used against a new policy.