subject: Motor Trade Insurance - You Cannot Afford To Be Without It [print this page] It is a question that must always be on your mind - do I really need motor trade insurance? The facts mentioned below may help you come to a decision.
You might be thinking that you will be able to manage with the regular car insurance as well as the extension facility to drive somebody else's car, but that might not be enough to give you the benefits of an authentic motor trade insurance policy.
To start with, your regular car insurance cover may allow you to take coverage for a different vehicle each time but that is a costly affair and can push up your annual insurance costs to levels that you may not be able to afford. Moreover, if your insurance service provider becomes aware that you are active in the motor trade then they can invalidate your existing cover due to non disclosure of this information.
Similarly, the facility to add extension to your existing policy by which you will be able to drive somebody else's car for a third party coverage may seem cheap but will not work as you think. In the event of an accident, the police are bound to scrutinize the papers closely and that could again result in the invalidation of the insurance simply because this facility of driving other cars is not given to people from the motor trade industry. People do use this but it is something that is not advisable.
There are other aspects to this insurance that you must know.
This policy is much cheaper than what you pay for private car insurance. Since there is no restriction on the number of private and personal vehicles that you can add to the policy, you can club all the vehicles plying on trade under a single policy and save on the costs. The rates are quite reasonable around 350 for only Third Party Coverage; 395 for Coverage of Third Party Fire & Theft and 450 for Comprehensive Coverage.
You must also look at the business imperative. If you are getting to a stage where the absence of this policy is stymieing your business opportunities in not allowing you to drive somebody else's car, then there is no point in postponing the inevitable. After all, you cannot always take chances and drive without the right insurance. Once you are caught, you could face a ban and that will also affect your relationship with your clients.
Finally, the absolute freedom that you can enjoy with a policy is too good to miss out. You are now at liberty to drive any number of vehicles and that could include vans of up to 8 tons, eight seater MPVs and all types of modified cars. One more advantage with this policy is that it permits you along with your wife to get extra coverage for very little additional cost.
Keeping the above in view, the question should be how can you afford to be without motor trade insurance?
by: Neil Anderson
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