How You Can Qualify for a Motor Trade Insurance Policy

How You Can Qualify for a Motor Trade Insurance Policy

Motor Trade Insurance - man looking at car

If you run a business related to vehicles like cars, motorcycles, trucks, vans, or other types of vehicles for your operation, you need to make sure that you have motor trade insurance at all times.

It’s because every second that passes, there’s always a chance of one of your vehicles running into trouble or getting damaged, and without insurance, you’re going to need to pay all the costs yourself. With motor trade insurance, you have some help to rely on even if your vehicles run into trouble.

If you don’t have motor trade insurance yet, this article will help you understand what motor trade insurance is, its different types, and how you can qualify for a motor trade insurance policy.

Types of motor trade insurance policy

The motor trade insurance policy provides you with protection when your vehicles get damaged. However, keep in mind that not all motor trade insurance packages are the same, as there are three types of motor trade insurance to choose from depending on your needs and your budget:

  • Road Risk Only Motor Trade Insurance – Road risk only insurance policies have 3 coverage levels. 

The third-party only motor trade insurance policies or third party road risks policy. It’s mainly used by motor traders who drive their own or clients’ vehicles on highways, buy and sell cars, repair and service vehicles, operate as a vehicle fitter, operate a valet service, or own garages. It offers the most basic coverage, meaning it covers the damages from third party injury, third party property damage and third party death due to any vehicular incidents that happen throughout trade or business.

The next one is third party fire and theft insurance. It has the coverage of the third party only insurance but also covers damages or costs caused by fire, accidents, or theft.

Lastly, the comprehensive motor trade insurance also has the coverage of the previous two, in addition to providing insurance for accidental damages connected to the business’ operation using vehicles.

  • Liability Motor Trade Insurance – This type of insurance policy protects businesses from damage as they do business with the general public in the area, such as car repairs, spare parts supply, or provide other services. It protects motor traders from complaints and claims from employees and clients and liability due to damages caused during maintenance or repair of vehicles.
  • Combined Motor Trade Insurance – This type of insurance policy covers a motor trader’s money, vehicles, liabilities, premises, tools and contents. It protects motor traders no matter if they work at their location or their home.

How to qualify for a motor trade insurance

For those who want to avail of motor trade insurance, first, you need to prove that your business indeed belongs to the category of motor traders. Basically, if you run a business that involves working with cars, vans, motorcycles, and other vehicles, you can qualify for motor trade insurance. However, it’s not as simple as that, as there are many things to consider to get the necessary qualification:

  • Vehicle exclusions – The more vehicles you include in the insurance, the higher the insurance price. It’s why you need to think carefully about which vehicles are covered by the insurance, as not all vehicle types carry the same type of risk. To take care of this, make sure to clarify which vehicle types are included to your insurance provider, as it’s something they can quickly provide for you.
  • Additional jobs – You have to disclose to the insurance provider if your main job is to run a motor trade business or you have another job that you try to do while also managing your business.
  • Coverage and benefits – When getting motor trade insurance for your business, don’t expect to get the same coverage and benefits that you will from private car insurance. To be sure of what you’ll get, study the insurance you’re trying to get.
  • Trading from business premises – Motor trade road risk insurance does not include guaranteed coverage against damage or loss to vehicles maintained at the premises of your motor trading business.
  • Vehicle value – Most of the time, claims payments included in the insurance policy will be paid equal to the trade value of the vehicle.

Motor trade insurance FAQs

Can I get away doing business without an insurance package?

You can, but not for long because no one’s perfect. Sooner or later, you’re going to face a problem that will cause you damage, and you’ll be left to pay all the costs. Without insurance, you’re open to all kinds of problems, such as claims from customers and clients, theft, fire, and many more.

Do motor trade insurance policies cover part-time dealers or traders?

Most insurance companies include part-time traders. However, you need to prove to the insurance company that you are actively doing business in the motor trade industry even if you have another job.

What types of policies can I get?

It depends on the type of insurance package you get, as some include protection against damages from fire, theft, and other types of damage. Some companies also offer combined policies. When looking for insurance, make sure to understand the coverage, so you can make your money worth it.

If you have a business in the motor trade industry, getting motor trade insurance is a must to prepare for the future and different possibilities. It offers you protection, especially if you get Australia’s first choice motor trade insurance.