Motor Trade is easily defined as the business of selling and buying vehicles. It also includes providing repair services, replacement parts, and vehicle accessories. Companies into motor trade are exposed to various risks especially since it involves products used on the road daily. These risks include mechanical problems of newly manufactured cars, technical glitches as an effect of wrongly repaired automobile parts and low quality vehicular accessories. Usually, the motor trade company involved in any of the transactions which produces the abovementioned damages may be held liable to their customers, even if they were not the sole reason for such problems. This is the reason why it is smart to have a motor trade insurance policy available.
How Motor Trade Insurance Work?
Motor trade insurance is also referred to as Road Risk Insurance. Greatly needed by business owners involved in motor trade, it can provide insurance coverage for business transactions, workers and various equipment. Motor trade insurance works by combining multiple areas that you wish to be insured for. Choosing the right plan highly depends on the services catered by your company.
There are different levels of motor trade insurance policies that you can choose from. These levels depend on the scope of coverage you wish to have. In the United Kingdom, Fast Trader Insurance can give multiple quotes for various levels of motor trade insurance convenient for you. You can choose from, Third Party Level Insurance, Third Party Fire and Theft Level Insurance and Comprehensive Level Insurance.
Third Party Level Insurance
A Third Party Level Insurance is the most basic insurance coverage a motor trade company can get. The main reason why most motor trade companies get one is that it is a legal requirement in order to run their business. This type of insurance level covers your company, employees and a third party in case an accident involving your company occurs. However, it will not cover other costs such as vehicular repair costs and legal costs.
Third Party Fire and Theft Insurance
This type of insurance is similar to the first one, its main benefit is that it extends its coverage to anything that might happen to a vehicle during a fire or theft while under your custody. It may include the replacement of a stolen car or repair for the parts damaged in a fire or attempted theft.
Comprehensive Level Insurance
A Comprehensive Level Insurance is the highest type of motor trade insurance policy. It covers everything mentioned in the first two kinds of insurances. This type of insurance aims to protect your company from any damages incurred and liabilities for third parties for any cause.