RD

Friday, 3 June 2011

The difference between Motor Trade Insurance and a Private Policy


Not many people understand the difference between motor trade insurance and private policy.  Both are connected with insuring cars, but other than that, what is the difference?

Insurance for the motor trade is designed to cover anyone who owns a business in the motor trade, whether they repair, buy or sell cars. A private policy covers an individual who drives a personal vehicle.  A person in the motor trade with a private policy is only covered to drive their own personal vehicle and not any customer cars.

There is a variety of insurance policies available specifically designed for the motor industry each with its own features and premiums, designed to suit any business.

These policies enable the trader to drive his own personal car as well as company and customers cars.  He can take out a basic third party insurance policy which covers any third party injury, damage or death while the car is in his possession.  Third party, fire and theft cover the car for third party damages as well as fire or theft while he has the car.  The best policy for any motor trader is the comprehensive policy which covers anything related to the car while he has the car in his possession.

Liability insurance is very important for any motor trader, this policy will cover staff and customers who work or visit the premises on a regular basis.  It covers any injuries which may occur.  Being covered if your customer slips in a pool of oil and breaks a leg is imperative, because the costs you can incur for damages are very heavy.

Combined motor trade insurance is another fantastic policy which will cover the entire business.  It covers money, tools, cars, damages, fire and theft.  This is full cover whether you sell, buy, repair or clean cars.  Customers are more likely to use a company, who has insurance, knowing their car is covered while in your shop or showroom.

Private policies on the other hand are for individual people who do not work in the motor industry.  Using their personal cars to get around and not driving other people’s cars.  Motor traders can have personal insurance, but this will only cover them for their own personal vehicles, which they may drive on weekends or after hours.  Ideally a motor trader will take out comprehensive insurance designed for the motor trade and be covered for his personal vehicle along with any other vehicle he may need to drive from time to time.

The difference between motor trade insurance and a private policy is very self explanatory.  When you can be stopped by police or traffic officers at any time, it is imperative that you have insurance and driving customer cars will require that you are covered by a good insurance policy designed for the motor industry.

No comments:

Post a Comment