electricity4gas

A Selection of Common Terms Linked With Motor Trade Insurance

Posted on March 15, 2010
Filed Under Auto Insurance, Auto Repair, Car Auctions, Car Buying, Car Donation, Car Insurance, Car Rental, Car Stereo |

America's #1 Trusted Source to Gov't Car Auctions

A small selection of general terms and phrases that are associated with motor trade insurance and an easy to understand explanation to help you.

Road Risk Cover

 

This is the basic level of cover that most traders require to run their business. You can use your vehicle for trading and general social/leisure purposes on public roads with this cover. You can choose whether you want your cover to be comprehensive or whether you want it to be just 3rd party or 3rd party fire and theft. It will cover you on the highway but also, in most cases, cover you for some general risks associated with a private car policy

 

Combined Policy

This is a more extensive, and generally expensive, type of policy. Everything that is covered within the Road Risk is also covered with this but at the same time you can also add extra covers. Eg Tools and Plant cover, Stock of Vehicles at premises cover, Liability cover, Business Interruption cover, etc . A combined policy is generally associated with a trader having premises (although in some cases they can be covered at home instead)

 

Demonstration Cover

There are two types of cover for this – accompanied and not. This addition to your policy allows a potential purchaser of your vehicle to test drive it. With accompanied you will have to sit next to the driver but with unaccompanied (generally this option only comes with larger combined policies) you can loan the customer the vehicle for a period of time. The licence of the potential buyer must be shown before they drive any demonstration vehicle.

 

Additional Business Use

This useful addition allows you to carry out your motor trade business and also lets you do a secondary occupation. Eg a builder is a prime example of someone that may need this cover - both to buy and sell vehicles, but also travel to different places of work for his construction business

 

Split Indemnity

This is perfect for people with low value own cars but who fix, clean, or move customer’s vehicles of a higher value, i.e a valeter or mechanic. The indemnity can be split for over £10,000, for example you could have £10,000 cover for your vehicle but the cover for your customers vehicles could be £25,000. It is not necessarily more expensive when your indemnity is split.

These are just a few but you can find out more about motor trade insurance terms and phrases by logging onto our website or calling us with your queries – we’re always happy to help!

Produced by Chris Roche - Think Insurance E-Commerce Manager. For more information on motor trade insurance, taxi insurance or other automotive insurances check out our site and give us a call for a cheap traders insurance quote.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks

Comments

Leave a Reply