Working in the motor trade means that you’re open to all sorts of customers, with all sorts of needs and preferences. So, often, you are likely to come across modified vehicles – or even use them yourself – but where does this kind of vehicle stand with your insurance company? This is one of the most common Motor Trade Insurance questions, and it’s not exactly straightforward.
Modifications complicate matters when it comes to insuring cars – especially when they are performance related. Usually, your insurer will want to speak to you to discuss it more closely with you and find out exactly what the modifications are, their impact on the safety of the vehicle, and how and when they were carried out.
It doesn’t mean that you won’t necessarily get insured, but just that they need more information in order to do their assessments properly. Especially with it being within the motor trade, it opens up other potential risks in an insurer’s eyes – so they need to be very cautious and clear about what they’re insuring.
Insurers differ when it comes to Mods
When it comes to Motor Trade Insurance, modified cars are not automatically insured on your policy. So you would first of all need to check this out with your insurer before buying your policy. Unfortunately, some will flat out refuse to insure modified cars and vehicles, but then others aren’t as hasty. However, if you get refused by one company, don’t think you’re okay to just go out on the road without cover, as you could be breaching your existing policy and end up with a higher premium or voided policy.
Being clear with your insurer
To make matters more complicated, some mods will be able to be more easily insured, where others sometimes cannot be at all. That’s why your insurance company will need as much information as possible. If you have a broker, then this can often be a big help as they are used to dealing with motor trade risks, and can put forward your argument which is a great way how to get cheap motor trade insurance.
If it is a simple modification such as alloys, you may be okay but find the alloys themselves are not covered. When it’s something related to altering the speed or performance of the car then your insurer is more worried about the risk, never the less all modifications must be referred to your insurer for acceptance.
Level of insurance
And the level of insurance they might offer you can also differ between insurers. Every policy and the requirements of each insurance company is different, and so where one might provide you with full cover for your mod on a normal policy, another might only be able to offer you third party cover. So basically you would be permitted to drive it if it were a customers, but if anything happened to the vehicle, you would not be paid out for the damage (except to the third party).
Speak to a broker
An experienced broker is the best bet – as they will deal with insuring mod cars every day. And so they will take into account other considerations, such as driving history, and the customers’ needs – and most importantly will be able to give you the right cover, so that if you are ever in the situation where you need to make a claim, then you can be confident that you are fully coveredJuly 10, 2014