Like private motor insurance, motor trade policies come in a variety of levels of cover like third party, third party fire and theft and comprehensive insurance. Unlike car insurance though, motor trade policies cover the driver – not the driver and the vehicle.

Basically, car insurance protects a specific driver in a specific vehicle. Motor trade protects a driver for any vehicle he or she drives for the purposes of motor trade (not for just driving to the shops) that is also his property.

As you can imagine, this is extremely useful for people in the motor trade. It provides insurance when taking a demonstration drive, or for testing customer vehicles for part-exchange or second-hand purchase. It also provides cover for driving vehicles from storage depots to showrooms, or in the case of larger organisations, between separate showrooms.

If motor trade insurance operated exactly the same way as other forms of motor insurance, it would be a nightmarish procedure to just complete the day to day business of the motor trade. Not only because of the potential costs of driving uninsured – but because even if you’re in the motor trade, it’s illegal to drive a car on the UK’s public roads without insurance.

Of course, given that these vehicles represent a motor traders life and blood (as well as a significant initial financial investment. Third Party is the minimum legal requirement but it won’t offer peace of mind to anyone in the motor trade. more so than private vehicle owners, a motor trader needs to be able to at least recoup losses on theft or fire (a car park full of stationary vehicles presents more targets than a single vehicle in a driveway or garage).

For those in the second-hand trade, the more likely comprehensive insurance will come in useful. Not only because potential customers will likely insist on a test drive but also because if the trader is purchasing a car from a private individual, they will definitely take it for a drive before deciding. Any kind of accident that happens during that time could be massively damaging to the business.

Motor trade insurance also extends to other areas of liability than comprehensive private policies. Firstly, although its not compulsory for motor traders as a business with public premises it can be incredibly costly if the operator fails to provide a safe environment; just like supermarkets and high-street shops, motor traders have a duty of care obligation in the common law.

Additionally, the motor trader is likely to need employers liability insurance; it’s legally required if you want to employ anyone from a part-time car washer to a full-time salesman or mechanic.

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We never really worry about the various types of car insurance covers until we are involved in an accident. We should protect ourselves and our car! Let’s have a look at the types of coverage provided under car insurance policies.

Several coverage options are available to customers of car insurance policies. These choices range from bodily injuries, property damage, collision, comprehensive coverage, medical compensation, towing and rental compensation. Each selection covers a specific situation of a possible claim:

Bodily injury encompasses injuries to a third party when covered insurance has the blame of accident.
Property damage protects a third party’s car in an accident.
Medical compensation provides insurance coverage to the passengers of the car accident as well as the driver, regardless of the fact that whose fault it was.
Collision coverage is meant to cover the damages incurred on the covered automobile, regardless of the fact whose fault it was. This automobile has to be listed on the policy.
Comprehensive coverage provides protection to cars being damaged in fire or during a theft. These are the non-collision damages incurred on a car. This cover is provided to a car listed on the policy and cover is provided regardless of the fault of the insurance holder.
Towing cover pays for towing the car from the scene of accident. The rental settlement caters to the cost of renting a car once the owner’s car is being repaired after the accident.

All types of covers mentioned above are optional. However, most drivers go for bodily injury, property damage, collision, and comprehensive coverage.

It is always beneficial to carry various options as put forward by the insurance company. This lowers financial risks coupled with a car accident. The cost of damage of the car in the accident, medical bills, towing and rental expenses add up to a lot and it becomes difficult to bear this amount altogether.

It becomes difficult for some people to pay such a huge amount of money in one go. An economic restraint can be avoided if one carries a complete insurance coverage.

It is generally believed that car insurance policies provide a full cover. Resultantly, policy holders might want the insurance companies to pay for all the losses. However, the actual story is different. Auto insurance policies have certain exclusions. These prevent them from providing a cover in certain types of damage situations.

Every car policy has certain written restrictions on cash payments and deductibles for an accident. As a matter of fact there are no car insurance companies providing “full coverage” in their policy. We say that some policies are above the rest because they have higher limits when it comes to compensations and they ask for low deductibles.

There are not a lot of risk factors that can be associated with different types of car insurance policies. The major insurance companies are either paying for a lot of insurance or giving out just too little for the compensation of accidental damage. Let’s have a look at an example:

Consider I buy a car and also gain an insurance policy covering for collisions. My insurance cover is over a 10 year time period. By the end of this time, the car almost becomes a classic and its value significantly reduces. If an accident occurs at this stage, the compensation paid will almost total out. My insurance company will probably not pay for the car’s repairs and offer a settlement for, say, $100 only.

On the contrary, parents having teenage kids on the same policy as their parents would appreciate an insurance policy that has a lower cost of premiums. They will most likely go for an insurance policy that pays high compensation for collision and comprehensive deductibles and that has limits for bodily injury and property damage.

The resulting situation from such a decision is not very good. Since teenagers, especially boys, have a higher tendency to be involved in an accident, there are a lot of leftover bills that cannot be paid by the insurance companies. This is because the company’s limits are exhausted. Therefore, it is very important for the policy holders to choose the right policy that provides an adequate insurance cover to them.

Various types of auto insurance have immense importance. They serve a dual purpose – providing cover to people in an accident and saving them money. The principal idea at the end of the day is that such insurance policies can keep the driver at ease. No matter what sort of damages to the car or personal injury befalls the driver; there is a sound insurance policy to shield them from any financial constraint.

One of the most useful facets of many classic car insurance policies has to do with the idea of flexible usage. This unique idea allows drivers to attain full coverage at a variable rate depending on how often they drive their car and in what situations. Most drivers with antique automobiles drive their vehicles over less than one thousand miles each year, but some collectors drive up to five thousand miles a year in their prized cars. Some drivers are extremely careful about distance because of its potential wear and tear on the vehicle, but just as many classic car enthusiasts are more concerned about what kind of situation they are driving in than how far they are driving.

Many vintage car owners only take their precious vehicles out for special events like auto shows or parades, but there are some drivers who enjoy taking the occasional drive outside of the umbrella that these events provide. With an insurance policy that supports flexible usage, a driver can pay only for the coverage that he or she needs to cover his or her classic car driving habits. This means that a driver who enjoys a leisurely weekend afternoon of driving through town in his or her car will be able to do so without risking the investment that the car represents, but also that a driver who only starts the engine during a special event will not have to pay extra money for open road privileges that he or she won’t use.

In addition to what is and is not covered, there are many conveniences that a classic car owner can enjoy by having classic car insurance instead of a standard auto policy. For one thing, having the agent who is responsible for the policy be knowledgeable about and sensitive to the needs of classic car owners can save quite a bit of hassle and phone time. Vintage car collectors are understandably very selective about where they get their cars repaired, and often will be unwilling to let anyone but their personally trusted mechanic look at their car. The reasons for this fact will be obvious to an agent who understands the needs and desires of people who own classic cars, but for an agent who is not experienced with these kinds of customers it can be a difficult fact to swallow.