Understanding Motor Trade Insurance

It is common knowledge, that to be able to drive legally on the roads in Britain, you must have car insurance. Anybody who drives a car is more than well aware of the legal stipulations of being insured, and more importantly, what can happen if we are not.

There is a lot of information and public notices about general car insurance, however the business of motor trade insurance is an entirely different matter.

Motor trade insurance is a vital component for any motor related business to trade legally. Trade insurance is a specialised policy specifically for businesses in the motor trade industry. This can range from mechanics to car dealers and tradesmen to name but a few.

The general requirement for motor trade insurance is anybody who uses a vehicle for work/business purposes. Driving a vehicle for work purposes under a private usage policy is illegal.

There are three main types of motor trade insurance; these are:
•    Road Risk Insurance;
•    Liability Insurance; and
•    Combined Insurance.

Road Risk Insurance:
This is the lowest band of motor trade insurance and is a minimum requirement in order for a business to trade legally.

Liability Insurance:
This particular level of insurance is vital if a business has employees, as this covers them also.

Combined Insurance:
This type of insurance covers both road risk and liability insurance.

For more detailed information regarding the different levels of insurance available, and which one is right for you contact a reputable motor trade insurance provider and be sure to tell them your exact requirements.

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Posted by admin on January 4th, 2011 :: Filed under Road Risks Insurance
Tags :: Insurance, Motor, Trade, Understanding

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3 Ways to Reduce Your Motor Trade Insurance

For many garages and car dealerships, the amount they pay for their business insurance premiums is often one of their largest outgoings. This article gives businesses in the motor industry three tips which could help them reduce the amount they pay for their motor trade insurance premiums.

Before we look at ways motor traders can possibly save money on their insurance premiums, it is first perhaps worth looking at what type of motor trade insurance is currently available.

There are two main types of motor trade insurance the first of which is road risks insurance. Road risks insurance as the name suggests simply covers vehicles when they are being used on a public road. This cover is actually a legal requirement under the road traffic act and road risks only policies are favoured by motor traders without premises and who perhaps trade from home.

A more common type of insurance policy is a combined motor trade insurance policy and this as the name suggests includes a variety of covers and is more suited to those businesses in the auto industry with premises and employees. As well as a road risks section a combined policy can include cover for material damage, contents, buildings, stock as well as cover including public and employees liability.

So if these are main types of motor trade insurance policy available, what are the 3 ways in which to save money?

One way to reduce your premiums could be to look at what your current policy covers you for and reviewing whether the level of cover you have is correct. In some cases motor traders end up paying for cover they do not actually need and by asking your current insurance broker to review your risk you can very often reduce your premiums accordingly.

Another way to reduce your premiums is extremely simple but very few motor traders actually do it. Top tip number 2 is therefore to ask your current insurance provider if they can get a lower premium. Some insurance providers will simply renew existing insurance policies without doing the leg work of searching each year for the very best deal. If you receive your renewal terms and you are not happy with how it compares to what you paid last year you should therefore ask your broker or company what else they can do.

The final way to reduce your motor trade insurance premiums is to actually consider changing to a different insurance provider. Whilst staying loyal to a service provider is important to many people, the fact is there is an extremely good chance of paying less for your motor trade insurance premiums if you decide to place your business with a motor trade insurance specialist or broker.

The reason for this is that motor trade insurance brokers will most likely have specialist policies and rates that are simply unavailable from your current insurance broker. If you work in the motor trade and are therefore looking to reduce the amount you pay for your combined motor trade insurance, follow these 3 very easy but highly effective tips and make sure you reduce your motor trade insurance in the coming year and beyond.

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Posted by admin on October 21st, 2010 :: Filed under Road Risks Insurance
Tags :: Insurance, Motor, Reduce, Trade, Ways

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What is Duty of Care and Why is Managing Road Risk so Important for Business Fleets?

The facts

• Every week in the UK over 20 people are killed and 250 seriously injured in “at-work” road traffic

accidents (RoSPA). According to the government, “for the majority of people, the most dangerous

thing they do while at work is drive on the public highway” (HSE)

Legal responsibilities

• Under The Health and Safety at Work Act 1974, employers are instructed of their “duty to ensure so far as is reasonably practicable the health, safety and welfare at work of all employees”

Employer duty of care is reinforced by the corporate manslaughter offence under which companies can be prosecuted for deaths to drivers and other road users caused as a result of a work related journeys where negligence is proven

Corporate Social Responsibility (CSR)

• Road accidents result in awful human losses for families, friends and colleagues of drivers,

passengers and other road users and have a negative impact on the wider community

• Accidents, congestion and poor driving exacerbate the environmental impact of running fleets

Financial benefits

Better driving should lead to:

• Fewer accidents, with reduced repair costs and/or insurance premiums

• Lower fuel consumption

• Reduced maintenance costs, especially tyres and brakes

• Improved vehicle condition and performance at sale and/or reduced damage recharges

• Less vehicle rental expenditure

Typically fleets can expect a 15-20% reduction in fleet costs in the first year following the implementation of a risk management program.

Business advantages

Fewer accidents mean:

• Fewer lost business opportunities, deliveries, loads, customer complaints, etc.

• Less usage of temporary contract staff or overtime to cover staff absences

• Reduced risk of prosecution

• Less time spent on non-revenue generating activity e.g. accident related admin, investigation, etc

• Improved staff morale

• All of which also carry, albeit possibly less tangible, financial benefits

• Improved environmental and CSR record

• Potentially positive (and perhaps more importantly

avoidance of negative) PR

Financial Markets (ECON 252) Insurance provides significant risk management to a broad public, and is an essential tool for promoting human welfare. By pooling large numbers of independent or low-correlated risks, insurance providers can minimize overall risk. The risk management is tailored to individual circumstances and reflects centuries of insurance industry experience with real risks and with moral hazard and selection bias issues. Probability theory and statistical tools help to explain how insurance companies use risk pooling to minimize overall risk. Innovation and government regulation have played important roles in the formation and oversight of insurance institutions. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.

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Posted by admin on September 4th, 2010 :: Filed under Road Risks Insurance
Tags :: Business, Care, Duty, Fleets, Important, Managing, Risk, Road

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