MSN Business Directory Can I insure older vehicles on my Motor Trade Insurance Policy?


Can I insure older vehicles on my Motor Trade Insurance Policy?

Not everyone in the motor trade can afford to run brand new vehicles.

Sometimes, an older vehicle may represent an important saving on your initial business outlay, which is important when you are just getting going.

Running older vehicles poses quite different set of insurance challenges, simply because however well maintained they are, there is a statistically higher likelihood that they will break down at some point. If they do, you could be left high and dry.

This is particularly damaging to your business if you rely on your vehicle to get you from job to job.

If you are in the motor trade and you have to rely on an older vehicle to keep you in business, you might want to pay special attention to any clauses about breakdown assistance and recovery, so you know what to expect in the unwelcome event of something going wrong with your vehicle during the course of your business.

Having said that, modern vehicles break down too sometimes, so a good recovery element in your policy could be worthwhile, however old your vehicle is.

There are other policy add-ons you can consider too that will give you peace of mind about running an older vehicle.

Why run older vehicles?

Older vehicles are attractive because they are almost certainly going to be cheaper to buy than new ones.

That initial outlay is an important consideration for a business. Older vehicles don’t depreciate as quickly as new ones, so the value of your asset isn’t getting smaller as quickly as it would if you have bought new. But older vehicles have, of course, already done more work.

They may wear out, or need more attention than new ones. They are also likely not to be under manufacturer’s warranty, so you will have to pick up the costs of any repairs if they do break down.

May 31, 2014