If you are looking to get cheap motor trade insurance then there are several ways you can lower the costs. Talk to your broker and see if they can put you together an appropriate package and find the best price from different insurance companies.
Some of the variables that affect the price of motor trade that we are going to discuss include:
- Level of cover
- Value of vehicles
- Claims history
- Age of drivers
- Number of drivers
- Driving convictions
- Number of vehicles
- Type of business and risk involved
- Number of miles driven
Firstly, the value of the vehicles. If you have £50,000 worth of cover, this may fall short if covering damage to more expensive cars such as classic cars. This means that if you were to make a claim you would not get the full amount back and would have to pay out the rest yourself. If you have a business involving classic car restoration or maintenance this is something you need to bear in mind and you may even need a specific product of insurance to make your insurance policy valid.
You can also change the number of cars that will be passing through your business. For example large showrooms may be handling more vehicles at one time than a mechanic working from their garage, so will need more cover. This is also true for the number of people on the policy. For larger operations, more members of staff means more chances of having an accident. More members of staff also mean more chance of young or convicted drivers.
Again age is another factor that will affect the price of your insurance. Most insurers will not cover drivers under 23 or 25 and even these young drivers will come at an extra cost. Even when this insurance is available you can usually only driver certain vehicles not classic or expensive vehicles. The same applies for older drivers, say over the age of 70. If someone on your policy has a driving conviction this can also affect the policy. We do offer cover for most convictions however they come at a costs.
Those operating more high-risk businesses will also pay more for their premiums. For example recovery operators, whether you are private or independent, big or small, you will run a higher risk of accident due to work on hard shoulders and motorways and transporting several vehicles at one time. We can offer specialist cover for these businesses.
You can opt to protect your no claims bonus which will increase the cost of your premium however if you have a built up a big no claims bonus this discount might outweigh the cost of protection. A motor trade no claims bonus can be built up by companies for many years and the larger your no claims bonus is, the cheaper your insurance becomes.
You can transfer your personal no claims over to a motor trade policy and this will reduce the costs but if you decide to stop trading vehicles you lose your personal no claims bonus and you cannot transfer it back to a private policy.
Some insurers will allow you to mirror the no claims bonus, but you will not get the full benefit of motor trade no claims but you can keep your personal no claims too. It is also important to bear in mind that if you have a history of claims this will more than likely increase the price of your insurance.
It is also difficult for start-ups to get cheap cover because of their nil no claims experience. Motor trade insurance no claims is separate to private no claims so this needs to be built up separately. This means that a start-up company will pay more for their insurance for the first few years but the price will drop if they don’t make any claims.
How many miles you drive on the road will also affect the price of your insurance. The more miles you drive, the more risk of an accident there is. If you provide a low but accurate estimate of how many miles you plan to be driving then your premium will drop. This is useful for many garages and showrooms who will not be driving the vehicles very often or for long distances.
There are many ways to keep the cost of your insurance down whilst keeping the costs of running your business low at the same time. Pretty much all the variables that affect personal insurance will affect motor trade insurance prices. Speaking to a trade insurance brokers will help you understand what affects the price and which parts you can manage without