Before you can work out how to bring down the cost of your motor trade insurance, you need to understand what factors actually affect your insurance.
Regardless of your trade profession, your insurance will be broken down using the following simple steps.
- Road risk only insurance (cover for business on the road).
- Combined Motortrade Insurance (cover for business with premises).
Level of Insurance Required:
- Fully Comp (cover for you and the third party)
- Third Party Fire and Theft (Only covers against fire and theft of the vehicles as well as the third party).
- Third party (only provides cover for the third party).
Once the above has been determined, in come all the other factors such as postcode, cost of cover for vehicles cost of cover for property, risk associated with that trade and so on. In essence, a motor trader who only cleans cars and wants to cover himself third party only in a good postcode will typically have a lower premium to pay. Whereas a garage that buys and sells cars, repairs cars within a bad postcode area will typically have a higher premium due to the associated risks.
There is no 1 template fits all for motor trade insurance as each policy and business is different.
So what can you do to bring down your traders insurance?
First off, work out the risk associated with your own personal business, do you need to ensure a property, if you don’t, potentially a road risk policy may be better and save a little. If there is no risk to your own personal property, then maybe a third party policy may be right for you.
Don’t insure what you don’t need insurance for, a mobile car valeter is unlikely to need to insure a property.
Have proper security measures in place. Good security measures lower the risk of theft which in turn lowers your premium. So if you are a car dealer or repair garage, have proper security in place.
If you never need to go on the road, insure for minimum level of mileage.
Experience within the industry, this is a fairly large factor on your policy, the longer you have been trading, the lower your policy premium typically becomes. For the first few years in motor trade business though, it is best to simply work hard and deliver good service to build a good claims history and gain years trading. Typically it will drop fairly quickly as years go by.
Think about future insurances and claims.
Sometimes it is not always a good idea to claim. If the claim you are facing is only very small, then maybe not claiming is best and cover the expenses direct, this will ensure your future insurance premiums remain low with a good claims history. Of course though, if you need to claim on your policy you have every right to do so.
Above everything though, ensure that you always tell the truth when taking out a policy, failure to do so could mean you are not insured should something bad happen.