The Do's and Dont's of Becoming a Motor Trader

Deciding to become a motor trader and open your own business takes a lot of time and consideration, there are certain things you need to ensure are done before you open the doors and there are plenty mistakes you can make a long the way.

What You Must Do

One of the first things you will want to do once you have found and signed for a suitable property is to get your insurance in place. Opening the doors to any business without adequate insurance is a disaster waiting to happen.

Firstly ensure that it covers your building and tools along with your ability to drive customer vehicles. In the event of an accident in a customers vehicle you want the repairs or replacement to be carried out as quickly as possible.

The next thing after insurance is to ensure you have a good website. These days the website is an essential asset, people don't search the telephone directory any more, they go online, learn as much as they can about the business before even considering to book their vehicle in.

Lastly you must offer exceptional customer service, you want repeat and referral business, this is the business that keeps your company's doors open, you cannot rely on marketing alone.

What You Must Never Do

While there are so many things you can do right, there are mistakes you can make along the way, mistakes that can cost you dearly in the long run.

The first mistake is when hiring staff you forget or don't bother getting employer's liability insurance. Now what you may not realise is this is a legal requirement in the UK which protects you when a staff member injures themselves at work. It can amount to thousands in claims and can leave you in serious financial trouble.

Another thing you must never do is allow potential buyers to drive a vehicle you have for sale without having the right cover in place. Demonstration cover enables you to allow customers to try before they buy. This also increases your chances of making a sale.

Lastly what you must never do under any circumstances is to lie to your customers. Your customers are what keeps the business going and you want to enjoy the benefit of repeat and referral business. While marketing online can increase brand awareness, as a motor trader you need your customers to make profits and rise to success.

Motor Trade Liability Insurance is Cheaper than You Think

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There is no reason why your motor trade liability insurance should cost you a fortune each year, this level of cover has become competitively priced making it easier for you to ensure your business has the right level of cover at all times.

That being said there are some steps you can take to ensure you don’t overpay for your policy and that your business still receives the best level of cover available.

As a business owner you should be reviewing your policy on a regular basis, looking for ways to reduce your premium while still receiving the right cover you need. One of the ways to do this is to search online.

The internet has opened up many doors for businesses looking for protective cover and the benefit is that you find the quotes obtained here are more affordable than if you were to approach a broker directly.

Obtaining Quotes

Before you start obtaining quotes it is important to remember that cheaper isn’t always better. Keeping that in mind you can go online and start your search. You’ll be amazed how many brokers are online ready to give you a quote there and then.

It is advisable to get a minimum of three quotes, this gives you a choice and enables you to review each one and compare them against each other to find the right solution for your business.

What to Watch Out For

Before you put pen to paper on the most affordable quote that comes into your email inbox, it’s important to know what to watch out for. Bear in mind that a company offering you a quote online doesn’t know your business or your immediate requirements. This means a majority of the time your quote only has the bare minimum cover and in some cases some essential cover is omitted completely.

One of the items you will find where you are offered basic cover is your public liability cover and as you know this is essential for any business. A public liability claim against you can amount to thousands and leave your business in serious financial trouble, so it’s important to make the necessary amendments to ensure that this cover is adequate for what you need.

Amending, Reviewing and Signing

Once you have made any necessary tweaks to the quotes and discussed them with the broker, it’s time to review again. You can review each quote which now states the exact level of cover you need.

From here you can make your decision based on price, cover and the reputability of the broker. Once you have read the client reviews and you are happy with your choice you can sign on the dotted line and enjoy affordable motor trade liability cover.

How Many Vehicles Will Fleet Insurance Cover?

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When you are in a business where you have a number of vehicles, fleet insurance may be the answer you are looking for to save money, cover all your vehicles in one policy making it easier to manage.

This type of cover is designed for all vehicles, so you don't have to have a number of cars or a number of vans, you can put all your vehicles into one policy from motor cycles to trucks. This is one of the many reasons this type of policy is so advantageous to so many businesses.

Is This Cover Right For Me

This type of policy is designed for all businesses that have a number of vehicles, some brokers cover from three or more vehicles while others do five or more vehicles, there is no maximum amount, you can have thirty or forty vehicles owned by your business all safe guarded by one handy policy.

The advantage is that there is only one policy. This means one premium and one phone number to call in the event of an accident, what's more there is only one renewal to worry about.

The biggest mistake companies make it shopping around every time they purchase a new vehicle, leaving a number of vehicles all on different policies. This is when the problems start. It becomes a nightmare for bookkeepers that need to try and take note of when premiums are due and when renewals are due, which can often leave you in a situation where you have one or more vehicles uninsured, not legal or safe when driving on the UK roads.

The best thing about this type of cover is that because you can place all your vehicles on one policy in the event of an accident there is only one phone number to call and one claims process to go through. This can save a lot of time and energy and doesn't leave you digging through paperwork trying to determine what car is covered by what company.

Add your own private vehicles to the policy, remember you can add anything from motor cycles to cars and vans to trucks, there is no limit to the number of vehicles you can add and it works out cheaper in the long run. If you were to have a separate policy for each vehicle you will end up paying a much higher amount in premiums than having all your vehicles under one easy to manage policy.

So to answer the question on how many vehicles you can cover by fleet insurance, the answer is that there is no limit, put all your vehicles into one easy to manage policy and enjoy the peace of mind that they are protected every time they pull out onto the road.

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Will Couriers Insurance Cover My Car or Van?

UPS 128314 (Photo credit: kenjonbro)

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When running a transportation business you want to know that all aspects of your business is covered. Being in the transport industry you want to know your building, staff and vans are covered by your couriers insurance, but what about your personal vehicle?

Chances are on a very busy day you get a call to collect a package in a nearby area, all your vans are already on the road so you hop into your own personal car or van to pick up the parcel. Now you may not know this but if you have private cover in the event of an accident while driving for work you are not covered, the safest thing you can do is include your own personal vehicles to your business cover, this way you can collect packages in your local area with ease whenever you want to.

The ability to cover your own vehicle under the business policy can save you money in the long run. You don't have a private cover that you need to pay for any more, you can even add your spouse to your list of drivers, enabling you to completely cancel your private policy and only have one premium to pay.

Of course this type of cover protects so much more than your own personal vehicle, there is your building which you can protect against fire, storm damage and theft. There are the parcels which while in your possession are your responsibility and there are your vans.

Over and above all of this you need to have good liability cover. Public liability is essential, a delivery person walking through your doors and injuring themselves can see you slapped with a hefty fine. Remember that when someone lays a public liability claim against you, you are legally responsible. This can be for loss of income, mental distress and medical expenses.

You also need to ensure that all your staff members are covered by employer's liability cover which is a legal requirement here in the UK. A staff member that is injured on the job can claim for loss of income, so besides abiding by the law it is in your financial interest to ensure you have adequate employer's liability cover in place.

When selecting your drivers always choose drivers with clean driving licenses, combine that with the ability to add your private vehicle to your couriers insurance and you can save yourself some money in the long run.

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