# Trade insurance



## Scoobycarl (Aug 13, 2011)

For the people who run there own business repairing cars what limit are you guys insured to for road risk ? Ie when picking up and dropping off cars ?


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## Shiny (Apr 23, 2007)

This will depend on your customer base (or potential customer base) and your targetted market.

If you deal mainly with day to day stuff, then you can set a relatively low limit to help keep the premiums down.

However, if you are dealing with high end vehicles, then you will need to set a limit that will protect you should the worse happen.

The higher your limit, the more you pay, a £100k limit is 10 times the risk of a £10k limit, in theory the premium should therefore be 10 times as much, although it doesn't quite work like that.

There will always be the occasion when you need to repair a car above your chosen limit. You have three choices here, either ask the customer to collect/deliver, contract the collection/delivery to a vehicle transport company or up your customer vehicle indemnity limit (either permamently or on a temporary basis if available).

You also need to make sure your Internal Risks (vehicles at premises) cover reflects your maximum exposure of customer's vehicles at your premises. If you only have space for one car, then this will be same limit as the Road Risks. However, if you have more than one car, then you need to evaluate the highest total value you could have at any one time and be wary of your selected limits. You can work within this by ensuring you don't book in too many high value vehicles at the same time and balance high value vehicles with other lower value vehicles awaiting work.

If you have your own self contained premises (i.e. a unit and not working from home), then an option could be to look at one of the more traditional Motor Trade Combined policies from a composite Insurer. They tend to give you a standard Road Risks indemnity of £100k often with an option of increasing up to £200k. The policies are more comprehensive and offer better peace of mind, but they are usually £2k+ starting point.


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## SteveTDCi (Feb 8, 2006)

Lloyd, out of interest, as an example let's say you have cover up to 50k but do have a car valued up to 100k. Does that mean in the event of a claim they will only pay out 50k as that's the maximum amount or would they refuse the claim completely because it's over your agreed limit. Assuming it was not your fault then I guess there is no issue as the third party would cover the costs.


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## Shiny (Apr 23, 2007)

If it is an "indemnity" limit, then they will pay up to £50k if a £100k car was written off. You'd then have to find £50k yourself if the accident was your fault.

If it was a "sum insured", then average would apply, so you will only get £25k and would have to find £75k yourself.

Most Motor Trade Insurers insure on an indemnity basis, certainly the ones we deal with anyway, but i wouldn't like to say for sure that was the case with all insurers.


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## SteveTDCi (Feb 8, 2006)

I've not had anything to do with our insurance yet other than seeing a certificate with my name on it. If I do get to the position where I came become involved in it then I'll certainly be giving you a call


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## mr paint (Jul 11, 2009)

Shiny said:


> This will depend on your customer base (or potential customer base) and your targetted market.
> 
> If you deal mainly with day to day stuff, then you can set a relatively low limit to help keep the premiums down.
> 
> ...


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## Scoobycarl (Aug 13, 2011)

Thanks for the advice shiny, i have had a quote for about £2200 from coversure for public liability,road risk and building and contents including tools which im happy with and can also add my personal cars to policy at no extra cost but the road risk is only £15000 which is fine on most jobs but needs to be around 40k i think ? I can evaluate higher end cars as and when tho.
Would increasing from 15k to 40k make premium go up much ? 
Carl


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