This is the basic level of motor trade insurance cover that most traders require to run their business. It allows you to drive vehicles on the public highway for social (subject to policy terms) and motor trade purposes. This cover can be comprehensive, third party fire and theft, or third party only. It will cover you on the highway but also, in most cases, cover you for some general risks associated with a private car policy

Combined Policy

This is a more extensive, and generally expensive, type of policy. It includes what the Road Risk cover does but then you can mix and match with additional covers. Eg Tools and Plant cover, Stock of Vehicles at premises cover, Liability cover, Business Interruption cover, etc. A combined policy is generally associated with a trader having premises (although in some cases they can be covered at home instead).

Demonstration Cover

There are two types of cover for this – accompanied and not. This addition to your policy allows a potential purchaser of your vehicle to test drive it. With accompanied you will have to sit next to the driver but with unaccompanied (generally this option only comes with larger combined policies) you can loan the customer the vehicle for a period of time. The potential purchasers licence must be seen before they can drive.

Additional Business Use

This useful addition allows you to carry out your motor trade business and also lets you do a secondary occupation. Eg a builder is a prime example of someone that may need this cover – both to buy and sell vehicles, but also travel to different places of work for his construction business

Split Indemnity

This is perfect for people with low value own cars but who fix, clean, or move customer’s vehicles of a higher value, i.e a valeter or mechanic. You can split indemnity from £10k upwards – eg £10k cover on your own vehicles but say £25k on your customers. Sometimes it’s not any more to split your indemnity.

These are just a small selection of terms associated with motor trade insurance and are intended to give you a little more information when deciding the best policy for you.

Source: http://EzineArticles.com/?expert=Chris_Roche

The first 25 in the equation reminds you that you need a minimum amount of twenty five thousand dollars in insurance to cover liability towards bodily injury for a single person involved in the accident. This is also the amount you could sue for should you be the victim.

In the case where more than one person got injured and wants to claim, the law states that the maximum you can be held liable for is fifty thousand dollars. The 50 in the equation mentioned above represent this maximum liability.

The last part of the formula indicates that you can either claim or be liable for the amount of twenty five thousand dollars for payment towards property damage you or the other party may have caused. This covers vehicles that may need replacement or fixing up and fixed property, like for instance walls destroyed in the accident.

Very important to know, should you decide to forego insurance is that the state of Georgia employs the tort system as far as vehicle incidents are concerned. Using this system, the courts and or authorities will decide on one person who can be held responsible for the accident, meaning that person’s actions lead to this incident taking place.

If you were found responsible you would be liable not only for your own costs, but should there be more parties you will have to pay for their damages as well.

Keep in mind that the rules on liability and payments may differ from state to state or when you drive in other countries. This can cause your insurance to be insufficient. See your insurance broker and find out everything about claiming from insurance should you travel outside your state. In some cases you will have to take out special insurance.

The same 25/50/25 formula also comes into play should you be involved in an accident with another person that does not have any insurance. Your claim against that person – should he be found the culprit – will have to stay within these parameters. The opposite is also true. Should you be the guilty party without insurance, the same amounts can be claimed from you. The maximum claim of $50 000 applies as well.

It is always advisable to make sure you are properly insured. Make a point of checking your insurance regularly as price increases like the ones in 2009 may see you get less insurance for the premium you are paying.

Source: http://EzineArticles.com/?expert=Ted_Kripps

1. Uninsured/Underinsured Motorist This generally represents the level of cover provided for yourself, and relatives and other occupants that may travel in the insured vehicle, in the event that some or all of you sustain bodily injury in an accident in which the driver of another motor vehicle is legally responsible and does not have insurance (uninsured) or does not have enough insurance (underinsured). In the US state of Nevada, for example, state law requires that this cover must be offered by an auto insurance company to the insured (Statutes 687B.145(2)), but does not have to be accepted by the insured ie. it is not part of the mandatory minimum liability cover required under the law of that state.
2. Diminution in Value This refers to the possible reduced value of your car after damage and repair. The rule in general is that a vehicle that has never been in an accident may, in some cases, be considered more valuable than a fully repaired vehicle. If your insurance policy provides for collision or comprehensive coverage under which your vehicle is being repaired, the loss to your vehicle will be measured by the language in the policy, and may not include any diminution in value. For claims against negligent parties’ property damage liability policy, such loss of value may be compensable under some circumstances.
3.  Medical Payments This component of your personal car insurance covers the costs of all reasonable and necessary medical expenses, without regard to legal liability, that may result from accidental bodily injury while driving, or being a passenger, in an insured vehicle during an accident or indeed being struck as a pedestrian by a motor vehicle.  “MedPay” is generally bought in nominal amounts, such as $1,000, to provide a means for quick payment of minor medical bills without having to deal with the courts or other insurance companies. This cover, like the uninsured/underinsured cover must be offered by the insurance company in most US states for example (eg. Nevada Revised Statutes (NRS) 687B.145(3)), but does not have to be accepted by the insured.
4. Bodily Injury/Property Damage Liability This cover protects you financially if you injure someone else or damage someone else’s property while driving your car. You must be legally liable for the injuries or damages to activate these coverages. Most countries around the world enforce a minimum level of public liability insurance for this very reason ie. it is to protect other people namely from your potential dangerous mistakes. All US states requires that every driver carry some minimum level of liability insurance.

Source: http://EzineArticles.com/?expert=Jon_James_J.