A type of motor trade insurance, vehicle transportation cover is designed for businesses involved in transporting vehicles from one location to another.
Moving vehicles such as cars, vans and motorbikes, whether that is part of a collection or delivery service or for another purpose, inevitably means a lot of time is spent on the road. The chances of being involved in a road accident increase with more time spent behind the wheel, which means there could be a lot at stake.
What’s more, trucks can be targeted by criminals. For businesses within the motor trade industry, this means you risk facing financial losses if something goes wrong and someone makes a claim against your business.
If someone took you to court over an incident that related to your business, such as an injury that was incurred because of your business activities, insurance could cover the compensation owed and the legal fees your business incurred. Without insurance, your business would have no choice but to find the money to cover these costs on its own, which could cause financial ruin.
Protection with vehicle transportation insurance provides peace of mind that your business has the correct insurance policies in place to cover you against industry-related risks.
Typically, motor trade insurance works as a bundle of insurance policies that can be tailored to suit your business needs.
This means that, unlike other types of insurance, you won’t be tied to a specific, pre-determined coverage features and can pick and choose between options instead. Therefore, you can build up your insurance bundle to the level of cover you are comfortable with.
Not all insurance quotes include the same features as standard. Some insurance policies might have specific conditions or exclusions written into their terms and conditions. It’s important to make sure you know and understand the way each policy works, particularly when combining multiple features into your vehicle transportation insurance.
Most motor trade businesses looking for car transportation cover will consider the following features:
There are certain types of insurance that almost all motor trade businesses are required to take out, by law. These are road risk insurance and employers’ liability cover.
Road risk insurance covers you to operate vehicles that don’t belong to you or your business. This includes driving a car you are transporting on a public road, even if you are only moving it a short distance to park it on a truck to transport it.
The more basic option for road risk cover is third-party only cover. This reflects the levels of cover that third-party offers for personal or business car insurance. It does not provide financial cover for the car you are operating if you are involved in a crash, but does cover you for injuries to other people and damage to their property.
For a greater level of protection, you might instead choose third-party, fire and theft cover. This still won’t cover the car you are driving if it is involved in a crash, but it does protect cars in your care from criminal activity such as fire and theft.
The most extensive coverage is fully comprehensive. This type of insurance is the safest option because it covers you for the vehicle you are driving if you are in a crash, as well as and for other vehicles.
Employers’ liability insurance is essential if your vehicle transportation business employs members of staff. You won’t need it if you are a sole trader, but you will need it for any employees, including part-time workers.
The employers’ liability cover you take out must be worth £5,000,000 at a minimum. You risk being fined £2,500 each day you operate without this insurance, so it’s worth it.
Your insurance firm will also want to agree your level of indemnity with you. This is the sum insured, meaning it’s the value of all items you have covered by your policy. This amount is reflected in the maximum you can be awarded if you successfully make a claim.
Many insurers will have their own criteria that you’ll need to work with, such as a minimum indemnity level, commonly set at around £10,000,000. Insurance providers do this to ensure you have a sufficient level of protection if you need it.
Insurance cover can be a vital lifeline for your business. Without it, you risk being liable to pay for legal fees, expensive compensation settlements, or the cost to repair or rebuild damages to vehicles and property.
Even motor trade businesses that are very careful have to be realistic about the risks of their industry and the potential financial consequences if something goes wrong.
The price you pay for your vehicle transportation insurance might not be the same as someone else’s insurance cover, even if you are in the same industry. It depend largely on how you package up your insurance features.
Taking out lots of insurance coverage can provide peace of mind, but it might prove costly as the premiums of each feature will add up. You’ll want to find a realistic balance and accept the level of risk you feel comfortable with.
In addition to your premiums reflecting the policies you have chosen, the cost of your insurance will also depend on a number of other factors.
This usually includes the size of your business, the range and complexity of activities and the scale that it delivers its services.
Some factors can be used as leverage to encourage lower premiums. These include:
Most importantly, compare deals! The single best way to reduce your insurance costs is to compare quotes and switch deals regularly.
Use UtilitySaving Expert.com for free to compare the best value vehicle transportation insurance deals and switch to a new insurance provider instantly.