With so many different types of car insurance on the market, it can often be difficult to sift through and find the right ones for your requirements. Motor trade insurance, which is usually offered by specialist firms like Gallagher, is designed for businesses, and there are different types available depending on the business and its requirements. Here is some useful information regarding motor trade insurance, and what it can be used for.
What is it?
Unlike regular car insurance which only covers private or domestic use of a personal car, motor trade insurance is for businesses which use vehicles as a part of their daily operations (for business purposes). This covers many different possibilities, from servicing and repairing cars to using them to transport people from place to place (taxis).
As such, there are numerous different types of motor trade insurance on the market, with each one suited to different business requirements. Taxi companies, for instance, will invariably take out the most comprehensive cover given that their cars are used extensively on a daily basis.
What Types Are Available?
One of the main types of motor trade insurance is road risk insurance, which is typically taken out by those individuals or businesses which buy/sell/repair cars (and drive other people’s cars on a regular basis). Like with personal car insurance, the levels of this insurance range from Third Party to Comprehensive.
Liability Insurance covers against any injuries which customers may receive when travelling in a vehicle or even visiting a garage, and so is ideal for taxi companies and other transportation services. On top of this, companies can also take out combined motor insurance, which covers against most eventualities in the motor trade.
Who is Responsible for it?
The company Uber having been making headlines recently, not least because Transport for London stripped the company of is licence last year due to having a ‘lack of corporate responsibility’. This shows that companies which use cars will be held to account of they do not put the necessary measures in place to protect their customers and their staff.
Major taxi companies usually have their entire fleet insured, which may be pricey but does protect their drivers, and is likely something which Uber will now have to consider implementing. Ultimately, it is the company which owns the vehicles which is responsible.
How Much Does it Cost?
As with all insurance, the price of motor trade insurance varies depending on which company you get it from, as well as how many vehicles you need to insure. That is why shopping around and getting quotes from different companies is the best way to find a good deal.
It is also important to consider how many people you might employ (for liability insurance) and how many actually need to be covered (some employees may not work with the cars, for instance).
Motor trade insurance is a necessity for those who use cars for business purposes, so it is worth finding a good policy if you run a vehicle-based business. A good policy should protect you against most risks, and give you the peace of mind you need to run your business successfully.