Many people look to the motor trade industry to either make money full time or to make a little money on the side. As such, the motor trade industry is becoming ever more competitive with many myth or theory floating around.
To try and help our traders, we have put together a quick ‘debunking’ guide to correct a few theories.
Part time traders is cheaper than full time traders insurance
Applying for part time motor trade insurance instead of standard full-time traders insurance will not always make things cheaper. If you have a full-time day job then the part time traders may work out better value for money. However, if you have another occupation that is owned and managed by you, looking to cover both business under one policy may work out cheaper.
A cheaper policy is always best, right?
Cheap motor trade insurance is typically always better for the bank balance, yes. However, by not declaring aspects of your business on your insurance policy such as average vehicle value and location, could see you completely out of pocket in the event of a claim, that’s without taking into account that you are committing a form of insurance fraud.
Not including elements like public liability insurance is also a daft move. Although not always a legal requirement, should a third party claim arise, you will be required to pay and without public liability, that payment is squarely on you to pay.
Leaving employs off the policy is better
Assuming you have employers liability insurance (which is a legal requirement), leaving people off your traders policy can make it cheaper. Having said that, if you employ people who need to drive the vehicles, leaving them off the policy is a bad idea.
By an employee of yours driving a vehicle without being named on the policy is illegal and if caught, will land you in trouble with the law. The vehicle will be seized and you will be required to pay to get the vehicle back. If you employee crashes the vehicle, the financial and legal consequences escalate rapidly.
Motor trade cover allows me to drive any vehicle
Yes, a policy can be tailored to cover you to drive any vehicle owned or registered to you including those in your custody. The policy will often not cover cars in your custody where you are using the vehicle for personal use.
I won’t include cars that I don’t use
It is never wise to leave vehicles under your control off your policy. In the event they get stolen, you will not be able to claim for the vehicle. Should you use the vehicle and get caught, then you will be in a lot more trouble.
It does not take long to add vehicles to the MID (Motor Trade Insurance Database).
I will use my personal NCB to lower the cost of my motor trade policy
Transferring your NCB is possible to gain an introductory discount, some brokers will also allow you to mirror your NCB. Speak with our advisor to discuss the best options for you.