Motor Insurance

Motor trade insurance policy is useful for people who are in the business of buying, selling and fixing of vehicles. Motor Trade insurance protects individual and property against risk of loss due to any unforeseen event. Motor trade insurance policy is important for all people who in the business of motor trade. To suit the requirements of different businesses insurance companies have come out with different policies to suit the needs and wants of business. These policies can be distinguished based on coverage, features and premium payable.

You can choose from five types of motor insurance policy. They are
a) Comprehensive Policy
b) Liability Policy
c) Third Party Policy
d) Fire & Theft Policy
e) Combined Policy


It is important that you understand your business requirements before choosing motor trade insurance policy. Some distinguishing features of motor trade insurance policy include administrative benefits and use of vehicle for personal and social use, personal insurance of driver and so on.

Some people working in motor trade industry are required by law to take third-party policy. Those traders who have to compulsorily take third-party polices include buyers and sellers of motor vehicle, repairers, mobile turners and fitters. Third party policies are general policies which have to be taken by people who work on motor vehicles. This policy secures the person against risk of failed repairs and the damage arising out of it.

The fire and theft policy is especially useful to protect yourself from the risk of fire and theft. Besides fire and theft protection this policy includes all the benefits which occur when you take third-party policy.

A comprehensive policy besides providing comprehensive coverage, includes all other benefits which occur to a person who has taken third party policy. Expanses included in comprehensive are damages caused to the vehicle due to normal wear and tear. Comprehensive policy does not include expanses incurred for repair of vehicle which has met with an accident.

Liability policy is best suited for people who are involved in the business of transporting people in their vehicles. The policy covers not only covers the people who are travelling in the vehicle but also the employees who are driving the vehicle. Liability policy is of three different types depending on the liability coverage that they offer. The three types are
1) Public Indemnity: This will indemnify the business in case there is any injury caused to the public.
2) Employee and Product Indemnity: This will indemnify the business incase of injury to employee or damage to company property
3) Sales and Service Indemnity: This will indemnify the business for loss arising to lack of proper service.

It is important to understand that benefits of each type of policy overlap each other. Therefore you should sit with your insurance broker or agent and try to get the best possible motor trade insurance quote from him or her. When getting a quote make sure that all your business risk are covered. If you purchase a policy that does not cover your business risk you will end up paying too much money without indemnifying your risk. So understand what your broker or agent is offering before taking motor trade insurance policy.

By: Eric Token

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Quote Me Today are well known insurance brokers with many years of professional experience. Quote Me Today is dedicated to help you look for an ideal motor trade insurance plan to cater to your needs so you can continue running your automotive business effectively and worry free.