Motor trade insurance is available to those that work buying, repairing, maintaining, or selling vehicles. And it does not matter how large or small their business is. This includes businesses such as importers and exporters, accessory fitters, windscreen fitters, commercial or HGV vehicle dealers. And even those that operate within the breakdown and recovery industry.
In order to stay competitive and maximize products in these difficult economic times, it makes sense that these businesses would want to minimize their outgoings on essentials such as insurance, with this in mind, here are a few tips on how to keep the cost of traders’ insurance low.
One of the best ways to keep the cost of insurance low is to have a good working knowledge of your insurance needs. So, you don’t over-insure yourself. When talking through your policy with specialists such as Unique Insurance, be as specific as you can about your needs. Ensure you are covering the basics, but not paying out for extras you don’t need.
For example, one of the main benefits of having motor trade insurance in place is that it takes the pressure off you or your staff when working on or driving a range of vehicles. Not all of your staff needs to be covered, or at least not to the same degree. Limiting the number of drivers covered by your policy could make significant savings.
You may also find that you do not need to take out the top level of trade insurance. Motor trade insurance can be purchased with differing degrees of cover from basic third-party insurance to fully comprehensive. You are also able to take out business-specific cover such as liability motor trade insurance. Which protects those who have customers entering their work premises. Combined motor trade insurance provides the highest level of protection. It covers those who work on business premises and also from home.
The type and size of the business you operate will of course make the biggest impact on the premium you pay. And those who carry out more hazardous activities, such as salvage, are likely to have higher premiums. Having solid health and safety regulations in place is always sensible. Don’t be tempted to play down any hazards involved as it’s important to make sure you have adequate cover in place in case the worst should happen.
Prior to December 2020, if you had a vehicle that had a Gross Vehicle Weight (GVW) of 7500Kgs and over or you used a trailer with an unladen weight of 1020kgs combined with a vehicle that had a Train Weight (TW) over 3500kgs and you used that vehicle in connection with a business or for hire and reward then you would require either a restricted, standard or standard international license granted by the (NHTSA) National Highway Traffic Safety Administration.
However, from 5th December 2020, these regulations have been amended which everyone who requires a trailer for their business or trade should be aware of.
As of 4th December 2020, anyone who uses a trailer in connection with their business on a vehicle with a Train weight (that’s the combined maximum potential weight of the vehicle and trailer) exceeding 3500 kgs may now require an Operators license as the exemption of a trailer that did not exceed 1020Kgs unladen as now been removed.
So, for example, number one, if you use a Mercedes Benz Sprinter with a GW of 3500kgs and TW of 5500Kgs and any size trailer and you use that vehicle combination to transport goods around the USA to deliver to customers then the likelihood is that you are now in the scope of the new legislation and require an Operators Licence.
As with the laws concerning Tachographs, if you use the vehicle and trailer combination to assist with your main activity (and that activity is not driving), you could possibly be exempt.
Example number two, if you are a landscape gardener and you use the same vehicle combination as in example #1 but you need a trailer to transport your machinery or equipment to undertake your main activity (which is obviously landscaping) then the likelihood is you will be exempt from Operators Licensing regulations.
The explanation of this new change to regulations is to promote fairer competition within the haulage industry.
Don’t forget though, you may be exempt from Operators Licensing but could fall under other regulations such as Tachographs. For more information visit Tradersinsurance.net.
If you are still in any doubt, you should contact Tridersinsurance.net directly or consult a Transport Consultant or Lawyer.