Most business owners are, quite rightly, keen to keep their business expenditure under control and this is especially the case when you are setting up a new business. So, let’s have a look at some of the factors that affect the cost of a motor trade insurance policy. However, do bear in mind that whilst any saving that can be made is to be welcomed it is important that you have the right level of cover in place to protect all aspects of your business.
The insurance company
It should not come as a surprise to read that the premium for the same level of cover may vary between different insurance companies so it is important that you shop around for the best deal that you can find. You could contact an insurance broker to do this on your behalf or use the likes of a price comparison website and quickly do your own research.
Type of business
The sort of motor trade business that you operate could have a bearing on the premium and of course how big your business is. For instance, a car valeting business may be less expensive to insure than a garage that carries out servicing of vehicles and MOTs. If your business has a £50 million turnover it is likely to cost more to insure than if it had a turnover of £1 million.
There will no doubt be a number of reasons why you have selected the location for your business but this decision may have a bearing on the level of premium on your motor traders insurance policy. This is because, for instance, certain parts of the country will have a greater risk of break ins and/or be subject to increased risk of flooding and the insurance companies will be aware of these statistics.
Road Risks Cover
If your policy includes Road Risks cover there are a few things that would affect the cost such as the level of cover, who the drivers are that will go on the policy and their driving/claims history and ages. Also the level of no claims bonus and the voluntary excess selected could impact on the premium.
These are just a few of the factors that may affect the premium for your motortrade insurance policy