Types Of Motor Trade Insurance
Generally, a motor trade insurance policy is designed for those people who engage in business related to selling, buying, or repairing of vehicles. This policy is offered even to part time motor traders. Various types of motor trade insurance policies are available, and you can choose the one that best suits your requirements and budget based on the kinds of premiums and the coverage they offer.
The different types of motor trade insurance policies include:
1. Third Party Only
2. Third Party Fire and Theft
3. Comprehensive
4. Liability policy
5. Combined policy
A Third Party Only motor trade insurance policy is also referred to as Third Party Road Risks Policy. According to the law, the motor trader needs to buy this policy if i) he indulges in services related to repairing of vehicles, ii) takes out to drive his vehicle or even his customer's vehicle on public highway, iii) deals in buying and selling of vehicles, iv) works as a fitter or a mobile turner, v) is involved in renovation and maintenance of old and antique cars, vi) has a garage of his own.
A Third Party insurance policy operates at the most basic level and provides coverage against third party injury, damage of property, and death caused due to the vehicle belonging to the motor trader.
In the case of Third Party Fire and Theft motor trade insurance policy, the coverage is provided against the damages and losses caused to the motor trader in case of fire, accidents, and stealing of vehicles belonging to the trade along with the above mentioned loses included in the Third Party Only policy as well.
Apart from the coverage provided in the above two policies, the Compensation Motor Trade Insurance policy also provides coverage for the unintentional damages caused to the cars associated to the motor trade.
The fourth type of motor trade insurance policy is a Liability Policy and is designed especially for motor traders who intend to i) provide work to people, ii) require calling people from within their area while indulging in business with them or while providing them their services, iii) renovate, maintain, or examine vehicles, iv) deal in providing, fixing, and buying of parts.
The Liability Insurance policy is further divided into the following three types.
i) Product, Sales and Service Insurance.
ii) Public Liability, and
iii) Employers Liability.
Last of all, the Combined Policy provides coverage for money, vehicles, liabilities, premises, tools and contents.
Motor trade insurance policy works to provide protection and security to the motor trader's business. Every motor trader must buy a motor insurance policy depending upon his needs and budget in order to protect himself against any unforeseen risks or calamities. Cheap motor trade insurance policies are also offered, but the motor trader must get the one that provides the maximum coverage and is less costly.
Motor traders must buy a motor trade insurance policy to protect themselves from any damages or risks. If, by any chance your vehicle encounters an accident, the motor trade insurance policy can save you from the cost of repairing the vehicle. Last but not the least, motor trade insurance not only provides you protection against the damages caused to your car, but in fact, it also provides protection in case you damage someone else's car by any chance.
About the Author:
Eric Token is a freelance insurance writer that specialises in motor trade insurance. For more information about motor trade insurance visit today.
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