New Continuos car insurance law, how will it affect my traders policy

JPS29

Hi.
Following on from the announcement that now all vehicles must show insured can anyone offer help in my case.
I have traders with Equit Red Star through a broker, unlike my old tradex I cant update the MIB myself and all changes/updates need to be done through the broker and normally take 72 hours or so to show on MIB. Also it is in my policy that they dont need to be notified of my stock unless it has been in possession for more than 14 days, this is great as sometimes I buy a car on monday and its sold by the weekend so it never actually goes "on" the databse but I am covered by the policy regardless.
Will this remove the 14 day window and also what about the 3 days input to MIB delay.
Many thanks

mcjordi

i think you would be best off asking your broker mate.. but i cant see there being a problem if you fill in the little yellow slip on the log book

martinthebandit

er I thought this 'continuous insurance' nonsense had been binned?

mikey72

martinthebandit wrote: »

er I thought this 'continuous insurance' nonsense had been binned?

dacouch wrote: »

http://www.moneysavingexpert.com/news/travel/2011/05/now-you-must-have-car-insurance

The opposite I'm afraid.

JPS29

mcjordi wrote: »

i think you would be best off asking your broker mate.. but i cant see there being a problem if you fill in the little yellow slip on the log book

Again, if I bought on a Monday and looked to sell by the weekend this would make no difference as dvla takes at least 3 weeks to update a vehicle as no keeper but in the trade.

mcjordi

Hence me saying ask your broker.. i dont know anything about trade policys my friend

dacouch

Have you ever been given this leaflet ? If not this explains a motor traders obligations under updating the MID (It's issued by the MIB who run it). This leaflet has been the same for many years so it's currently status quo. It is supposed to be changing at some point from 14 days to 7 days.

http://www.mib.org.uk/NR/rdonlyres/A0DFD884-48CB-4E51-96B7-CEB39DB8A1C4/0/MotorTradefinal.pdf

If your with Equity, they have a very bad reputation for administration. I would strongly recommend that you do your updates in a way that gives you a paper trail eg you send a fax to the broker (Keep a transmission report) or send an email. Then when they omit to update the MID (They will miss some) and your stopped by the police you can prove you are abiding by the relevant laws. Without a paper trail they or your broker will deny receiving your call which could cause problems

JPS29

Thanks Dacouch.
Yes I remember getting this a few years ago or a similar one when I was with tradex.

I get your point re ERS, we actually ended up with a CCJ throiugh them and their lapse admin some time ago (think you helped with this too..) Thankfully removed within 7 days.

I think I would probably be better looking to change insurers when I'm up for renewal in a few months to one that allows me to update the MIB.

Cheers

dacouch

You don't have much luck chosing insurers, Tradex are arguably the worst motor insurer, ERS are also bad but not as bad (They could be average if they sorted out their claims and admin). Your next choice will probably be Chaucer, MMA or Tradewise who are all not great.

If you have ever had a total loss claim especially a theft on a road risk motor trade policy you would be very careful selecting Insurers and pay a bit more to be with a decent Insurer. There are schemes underwritten by proper Insurers such as Aviva and RSA etc out there, they are well worth the extra £100 or £200 extra premium if you ever need to claim.

Motor Trade Road Risks are full of small print, the cheap and cheerful Insurers actively look for ways of throwing your claim out when they get it.

JPS29

Thanks again.
Are these available direct through Aviva RSA etc or just through brokers/third parties and underwritten by them.
Also when I come for renewal I want to go with someone decent as now I have motor trade premises I was looking at a combined policy to cover the garage too. I dont mind paying extra as it will be written in the business expenses anyway.
Cheers

dacouch

Now you have proper premises, the world is your oyster. The mainstream Insurers don't like traders without premises hence why it's dominated with the "Not all that" Insurers who can rely on their small print.

You may find that now you have premises, your current policy excludes cover for damage / loss to vehicles within a certain distance of your business premises. This is often 250meters but can be as bad as 1km. It would be wise to check with your broker and get the answer in writing.

A combined motortrade policy is so much different than a road risk policy, the cover is far more comprehensive and their is less small print. I would suggest you contact a broker who specialises in commercial insurance well before your renewal to get quotes. Do not use Swintons and I would hesitate to use your current broker if they have put you with Tradex and then ERS.

When you work out how much cover you need for each section eg stock vehicles, tools etc it pays to over estimate especially on tools as you will be constantly adding expensive tools to this. Do not buy on price alone look at the overall cover and quality of cover. Ask lots of questions of the broker, they know what they are talking about you should be able to gauge this. Ask around a few of your friends with MT premises in the area for recommendations on a good broker and insurer (They will probably be with Allianz or Aviva). Selecting a broker for your MT business should be a long term decision so spend a bit of time until you are happy with the broker. A good broker will get you a good premium, twist the insurers arm if you want something unusual and will come into their own when you have a claim.

With a combined MT policy you will normally be given your own direct password and access to the MID so you can update and delete your vehicles directly onto the MID