Although most of us will have motor insurance for our own cars, unless we are in the motor trade business, we may not have heard of motor trade insurance although it is something that may concern us. If we attend a function and there is a valet service to park our car, if that valet service does not have trade insurance and the valet damages our car, we may have to pay to repair those damages ourselves. To understand why this is we should first consider the different types of insurance that we may have for our own car.
Basically there are three types we could have; Third Party, Third Party Fire and Theft and Comprehensive. The first two, Third party and Third party Fire and Theft, only cover damages to other people (third parties) and so at no time is any damage to your car paid by that insurance policy and the only difference between them is that the second one also covers fire or theft whereas the first one does not. Comprehensive insurance should cover any damages to your car but the actual circumstances as to what damages are covered and under what circumstances can vary from policy to policy. If the valet does not therefore have their own insurance that will pay for the damages to your car, unless you take that valet to court, you may have to pay for the damages yourself. A reputable valet service though should have their own motor trade insurance as should any reputable mechanic in case they cause damage to your car whilst test driving it. There is not really any excuse as to why these people should not have their own insurance as there is also part time motor trade insurance which has especially been designed for those that have part time work in the motor industry and work a full-time job outside of it. Most people that work in the motor trade will want to be considered reputable and professional and so will have motor trade insurance but obviously they will not want to pay more for that insurance than they need to and as there are many different policies offered by many different companies, it can be time consuming finding the one which is most appropriate for them.
For that reason, many people involved in the many different aspects of the motor trade, rely on insurance brokers to find the correct policy or them. In the UK at least, insurance brokers are different from insurance agents in so far as they do not work or any one insurance company and in fact are required by law, to only have their client’s best interests at heart and not one particular insurance company. This means that whereas an agent may offer you the best policy that their company offers, a broker will be able to offer you the best policy from any company, hopefully ensuring that you get the best, cheapest and most appropriate insurance for your needs.