Skip to content

Understanding The Basics Of Motor Trade Insurance

It is easy to get overwhelmed with all the details of motor trade insurance especially if it is your first time to encounter it. While there are indeed quite a number of terms and provisions that you will come across, they are not all that difficult to understand once you get the basic concepts down pat. Know what the rationale is for getting this kind of coverage and what kinds of risks you can get covered for. This is the only way for you to ensure that you are paying for something thats actually beneficial to you and your business.

Essentially, motor trade insurance is a financial product that protects business owners from financial loss due to: Road accidents involving vehicles in your care the basic cover that the law requires for motor trader businesses in the UK indemnifies third parties for damage caused by your driver and vehicle. motor trade insurance covers a named driver, usually the one tasked to take your vehicles or your customers vehicles on the road.

In case an accident happens in the performance of his responsibilities, the insurance will cover the cost of repair or replacement of the third party property damaged in the accident up to the limits set in the insurance contract. In a comprehensive coverage, expenses for the repair and replacement of your vehicle are also covered.

Vehicle malfunction due to repairs done by your employees if you assemble or repair cars, your motor trade insurance coverage can include a product liability cover as well. This provides benefits in case a vehicle that was service in your shop malfunctions and gets into an accident. This also gives you financial protection in case of litigation and law suits arising from product liability issues.

Personal accidents of employees or customers while in your premises you will have employees and customers walking in and out of your business premises. In case they get into an accident and injure themselves while in your premises, this insurance product will provide the cash benefits to cover necessary medical expenses. This includes minor accidents like slipping or hitting your head on a low beam as well as major accidents like falling on the stairs or getting hurt while operating machinery.

Loss or damage of vehicles left under your care and in your premises theft and fire damage may be included in a motor trade insurance policy. This kind of cover protects you in case a car is stolen from your premises or is damaged by a fire. Other related coves would include business premises insurance for the building or the structure itself and any other important properties in the premises.

Being in the motor trade business involves a big amount of money already. You do not want to be burdened even more when contingencies arise. Get the right type and amount of coverage for your business and trust that your chosen insurance carrier will deliver at your time of need. Investing in a motor trade insurance policy from a reliable insurer will allow you to preserve your income and minimize your potential losses from unexpected events.

Financing & Leasing A Courier Vehicle - What Are The Differences?

When starting a courier business, you will draw up a business plan and find financing sources for what you want to buy. One of those things to finance is a vehicle to help you in delivering packages for customers. Do you lease out or buy a new one? How will it affect your business when you decide to lease or buy? Do you have enough capital to buy? The differences between financing and leasing a courier vehicle can be explained as below:

Reputation Of Your Business

You may need to have a new vehicle now and then for the purpose of selling the image of your courier businesses. When a new model of a vehicle comes out, you want it to be part of your fleet. If this is the case, you cannot afford to buy a new model every time it comes out. The option is leasing which is less costly as with buying a new one. Most customers will want a company that offers different tastes according to their preferences. Couriers that use old or out-dated vehicles, to deliver packages to their customers Are less likely to attract new customers as compared to those who lease out new models.

Potential Of Your Business To Grow

Competition is high among courier businesses in the UK. With such a competitive spirit, you cannot afford to tie up your capital by buying a vehicle. Financing a courier vehicle means that you will tie up your capital and thus the potential of your business to grow will be minimal. An alternative is to lease as the cost is low when you compare to buying a new one. The idea is to give your business the needed capital to stay in the competition and thrive. However, large businesses with huge capital to spend can opt to buy new vehicles for their courier businesses.

Size Of Your Courier Business

If you have a large size courier business, then you can afford to buy a fleet of courier vehicles for your business. This is where you go for the financing option. Such couriers will have multiple vehicles and also they offer leasing services to smaller couriers who cannot afford to purchase them. Leasing is thus left for small businesses as buying will not be economical on their part. This is due to the low revenue the small business gets, which does not translate to owning a courier vehicle and thus opt to lease.

Liability Of Maintenance On The Vehicle

When you finance a vehicle, you assume ownership and this means that you have to take up the liability of the cost that comes with repairs and maintenance. Assuming that you are a small courier business, this can take out a lot of your capital and profits.

On the other hand, leasing a courier vehicle means that you do not have to deal with the costs of repairs and maintenance all you do is pay for the lease charges as the owner while you transfer the costs of maintenance and repair to the owner. This will free up your resources, that is, capital so that you can invest it in your business to increase production.