| If you are in the car business, it's likely that you may | | | | of such a policy, you will end up paying higher |
| have heard about motor trade policies which are vital | | | | premiums if you are young. So a person below the |
| to such operations. However, there are several | | | | age of 24 will need to pay significantly more than a |
| conflicting thoughts about such policies; while some | | | | business owner who is in his forties. |
| business owners believe that this type of cover is | | | | What does indemnity in such a policy stand for? |
| unnecessarily expensive and does little for the | | | | Trade cover for the vehicle will come with an |
| company; a large number of business operators | | | | indemnity which is the maximum amount of money |
| believe that the benefits of such cover is vital to the | | | | that the cover provider will pay in case of a singular |
| success of a car venture. As per the law, you are | | | | claim. This of course does not mean that you will |
| required to own such cover if you intend to operate | | | | need to pay the Jaguar owner if you trash his |
| in the car sector. If you are mulling over the | | | | vehicle. The indemnity level will only kick in when |
| purchase of such a policy, here are answers to some | | | | there is no third-party claimant. |
| of the crucial questions that you may have. | | | | How many vehicles can you add to such a policy? |
| What is a motor trade policy? | | | | There are no limitations on the number of vehicles |
| This is a type of insurance cover specifically designed | | | | that can be added to such a policy; also there are no |
| to meet the needs of business owners operating in | | | | additional charges for adding a car. However, you will |
| the car sector. Several vehicles can be simultaneously | | | | need to check with the cover provider to get |
| added on such a policy and it covers the operator | | | | additional information about any extra charges that |
| and owner against a host of undesirable eventualities. | | | | you may have to incur in case the number of |
| What is the primary benefit of such a policy? | | | | vehicles exceeds a certain limit. |
| When you purchase trade cover, the insurance | | | | Can you use a trade policy even if you are a |
| company will usually add the vehicles to the MID | | | | part-time trader? |
| which is a database of insurance companies that is | | | | Yes, you can. As a matter of fact, a lot of business |
| also used by the police to trace vehicles and their | | | | owners prefer to restrict their trade activities to |
| policies. Any vehicle used by the trader should be | | | | weekends and you will find that a motor trade |
| added to the database in 14 days or you risk the | | | | insurance policy is reasonable enough to suit your |
| seizure of the car. Ideally, you can simply let your | | | | requirements. |
| cover provider know about a vehicle that you intend | | | | What would be an appropriate excess amount for a |
| to operate for ten days or more so that they can | | | | trader? |
| add the vehicle to the database; it usually takes 48 | | | | Most motor trade insurance policies come with a 250 |
| hours for the car to reflect in the MID database. | | | | pound excess; this can be raised further if you would |
| It's worthwhile to understand at this point that most | | | | like reduce your premiums. Many companies will offer |
| companies will not charge you for adding vehicles to | | | | you 10% of excess, which means that you will be |
| a motor trade policy. | | | | liable to pay 10% of the claim value. Since the |
| What is the minimum age at which a business owner | | | | provision for excess varies among providers, it is |
| can get a trade policy? | | | | best to consult a broker or discuss it with a |
| Although there is no minimum age for the purchase | | | | representative of the company. |