subject: Motor Trade Insurance – What Level of Cover Should You Have? [print this page] Motor Trade Insurance What Level of Cover Should You Have?
The level of cover or indemnity that you get on your motor trade insurance policy should be dependent on the specific industry and type of work that you are going to be carrying out. It isn't hard to understand why someone who is working as a mechanic will not need to have the same type of cover that someone who is buying and selling cars. We have given you some basic information below to try to help you make the decision over what indemnity you are going to take out.
You may find that the best type of policy for you would be one that has got a split indemnity on it. This type of indemnity means that you can have one level of cover for your own car and then another separate level for any of your customer's vehicles. This can come in extremely useful if you have only got a cheap car for yourself as it can make your policy cheaper than just having one level of cover.
Another thing that should influence your decision is the model of car that you are going to be dealing with. If you are going to be buying and selling older cars that have a low value then you are going to need much lower cover than if you were dealing with prestige cars that have a higher value. If you find that the indemnity you take out may not be enough then you can always make it higher when the need arises. If you are going to be dealing with customers cars by fixing or cleaning them then you could end up working with a wide range of different types. If someone comes to you and needs work doing on a highly valuable car then they may potentially want to see proof of your level of cover so that they know their vehicle is protected.
You may only need third party cover if the type of work you carry out is suitable. For example if you are working in the breaker or salvage business then you don't really need to worry about cover for the vehicles you work with as they wont be worth much. No matter what type of work you are going to be carrying out it is important that you get the right cover for your individual circumstances. It is always better to spend a little more on your motor trade insurance and have a higher indemnity rather than getting a policy with a low level of cover and then having to fork out anything extra.
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