subject: Understanding The Fine Print On A Motor Trade Insurance Policy [print this page] Most any insurance policy, whether it pertains to automobiles, homes, or health may carry some restrictions. In other words there may be some items that are not covered by the policy. Your motor trade insurance policy will most likely have some such restrictions regarding certain provisions or details. Some examples of the type of restrictions which may be placed on your business vehicle policy include:
High performance vehicles. All insurance companies place certain limits on amount of horsepower and engine size, and many restrict as to the model. Some are a higher risk for theft or are costlier to repair.
Classic trucks or cars, particularly those over twenty years old. They may cover but charge higher rates due to repair or replacement costs being prohibitive.
Commercial vehicles such as taxis or multiple seats. Vehicles seating over eight (for example) may be restricted or placed in a higher cost bracket.
Although your vehicle is primarily used for business purposes, having a good credit score will help when it comes to purchasing insurance. Most providers consider those whose credit is poor to be risky as far as paying their policy premiums. Also those with poor credit are statistically more prone to file claims.
The more safety features on your vehicle, the lower your rates may be. This is not always true but most of the top rated motor trade insurance providers give discounts for such devices as air bags, side air bags, and anti theft alarms. If you have teen aged drivers who may be driving your vehicle you must let the insurance provider know this and may be charged more accordingly. Lending your vehicle to someone who is not covered by an insurance policy can be risky. If they happen to become involved in an accident, you will be responsible even if you did not know that person was not covered by their own insurance.
If you do have an accident you may well end up paying upwards of forty percent more when you renew your policy or the insurance company may not wish to renew your policy. Some, however, do have a "forgiveness" clause in which they do not raise your rate for the first occurrence. Ask your insurance agent if your policy provides this.
Your motor trade insurance policy may place a replacement price on your vehicle based on figures they receive from local or nationwide auto dealers. You can get gap insurance that will cover any difference between what the insurance policy deems your vehicle is worth and the actual replacement cost in the event that your car is declared "totalled out."
Theft from your vehicle will provide cover for instances involving someone breaking in and taking valuables from inside your car. Many insurance providers will only pay if your vehicle was locked so be sure to read that fine print for details.
When you do decide to change trade insurance/traders insurance providers, you must cancel your previous policy in writing and provide them with a date and time of termination. In many cases if you call your agent and let them know of your decision to switch coverage, they will provide you with a cancellation request to fill out and sign.
by: Neil Anderson
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