A Motor Trade Insurance policy is formulated for those who earn their living by selling, buying, repairing or generally doing anything related to cars. This insurance is for small, big or even part-time motor traders.

There are different kinds of Motor Trade Insurance policies that vary in features, premiums, and the extent or nature of coverage. A motor trader needs to go for a policy that meets his requirements and suits his budget.

Types of Motor Trade Insurance Policies:

Motor Trade Insurance policies are generally of five different types.

These are:

a)Third Party Only:This Motor Trade Insurance policy is also known as Third Party Road Risks Policy. The law requires a motor trader to purchase a Third Party Only Motor Trade Insurance policy if the trader (a) provides general services of repairing of vehicles, (b) drives his or his customer's vehicle on a public road, (c) buys and sells cars, (d) operates as a fitter, Valier or mobile tuner, (e) restores and repairs vintage and classic cars, and (f) owns a MOT station or a garage.

A Third Party Only Motor Trade Insurance policy is the most basic level of coverage and covers a motor trader for third party injury, third party property damage and third party death caused by any vehicle connected to his trade.

b)Third Party Fire and Theft Policy:This Motor Trade Insurance policy includes coverage for damages caused to the motor trader due to fire, accidents, or theft of vehicles connected to the trade, over and above the above-mentioned third party coverage.

c)Comprehensive Policy:A Comprehensive Motor Trade Insurance policy covers for accidental damages caused to vehicles connected to the motor trade, as well as the above-mentioned third party, fire and theft damages.

d)Liability Policy:A Liability Motor Trade Insurance policy is specially formulated for motor traders who (a)need to invite the public within their premises while doing business with or rendering services to them, (b) employ people, (c) restore, repair or service cars, and (d) supply, fit and buy parts. The three types of Liability Insurance are (a) Product, Sales and Service Indemnity which includes “Defective Workmanship”, (b) Public Liability, and (c) Employers Liability.

e)Combined Policy:A Combined Motor Trade Insurance policy covers for money, vehicles, liabilities, premises, tools and contents.

Thus, a Motor Trade Insurance policy is an extensive policy that exists to protect the business of a motor trader. This policy protects businesses that operate from business locations as well as from homes. Every motor trader, irrespective of whether he repairs cars or imports sports cars, needs a Motor Trade Insurance policy. He only needs to choose the policy that perfectly suits the requirements of his business and thus allows him to run his business in a minimum-risk mode. Motor Trade Insurance policies are both expensive and cheap, depending on the nature and extent of coverage opted for. The motor trader just needs to choose the optimum policy that costs less but covers the maximum number of risks.