The difference between Car Insurance and Motor Trade Insurance

Courier Van Insurance

In this busy world, we need a mode of transport to reach places fast and within a limited time. Most of us have a vehicle to make our life simpler. However, buying a vehicle is not enough. There are a lot more things to look into after we buy a car. The most basic of this is getting insurance for the car. The insurance may depend on the type of car you choose. There may be one type of insurance for the private vehicle while another insurance for Courier Van Insurance. The differences between the two are discussed below.

Traders’ policy

If you have opted for a motor trader policy then it is not only the vehicle that is mentioned in the Courier Van Insurance will be insured. In fact, you may take any vehicle out for the delivery of the products to the customers. If the vehicle you are using isn’t officially insured by the insurer, the insurer will still pay for the damages made by the car. The reason for this is that the car was used for the service of the company and hence they have to look over if accidents occur during the process of the delivery. With this, you are not limited to only one vehicle with a single policy. In addition to that, you don’t have to have a different policy for different vehicles that you might use for your business. This policy also covers the car that is not yours but your customer’s.

Courier Van Insurance

Private car Insurance policy

The private car insurance is restricted to only the car that has been mentioned in the policy. If you meet with an accident with the car other than the one covered under a policy, the insurer will not take any responsibility because it wasn’t the car that was covered under the insurance. Unlike, the Trader’s policy, this insurance only protects the car from the damages that are mentioned in the policy and not anyone else car. If you want protection in case of damages made while driving someone else’s car then you can have Driving Others Cars policy. This policy allows you to drive other people’s car and you will be insured. However, the problem is if you use it for trading purposes and you meet with an accident then your car may be considered invalidated by the insurer.

Conclusion

The difference clearly shows that if you are looking for making your private car into a commercial car then you might not be possible to do that. The commercial courier cars need different insurance as that compared to the private car insurance. If you are planning to make you private cars commercial, then you have to take that additional insurance to keep you safer on the road.