Motor-trader insurance is a policy designed for those who deal with cars as part of their business. This might be as a car showroom selling cars or as a garage repairing cars on behalf of customers. It is available from a limited number of insurers but one sure insurance will quote for this kind of cover.
What are motor trade insurance premiums?
Motor–trader insurance premiums are a major expense on the profit and loss account for anyone who owns a business that needs to financially protect the vehicles in its care. The cover is essential, however, because vehicles can be of a high value, accidents will happen, and vandals and thieves are at large.
Motor-trader insurance premiums can be a costly financial burden for businesses that own or operate vehicles. For business owners, a combination of factors can affect the cost of motor-trader insurance—such as the type of vehicle and the size of the business, as well as the industry it falls into.
A part of any vehicle insurance is the legal requirement, should a vehicle come into contact with a third-party’s and cause any damage. With motor-trader insurance, however, it is vital that the car in your care also has full cover. That is, cover beyond just fire and theft, and for damage that happens anywhere it stands or moves, whether that is at the business premises or while being driven on the road.
As motor-trader insurance premiums are skyrocketing, drivers are looking for ways to reduce the cost.
Here are five tips that can help you reduce your motor-trader insurance premiums while still having the protection you need.
1. Reflect on who is driving
We have all been there: when you are driving, and you realise that you are not in control of the car suddenly. This is especially true if you have been driving for a while, but you have been in a lot of rush. People sometimes tend to blame themselves when they get into situations like this, but in most cases, it is down to the other person that caused the accident. When you buy car insurance, the company has a lot of information on you to predict future claims. They use 3 main factors: your driving record, how long you have been insured, and how many miles you drive each year. However, we are all different, and every person has different driving characteristics. Also, with motor-trader insurance specifically, we may be talking about many drivers who work for the business. Before employing them, a business owner ought to check their driving record.
2. Choose the location and building carefully
Are you an owner of a company that deals in car rentals or car sales? Do you have employees who are involved in the fast-paced world of car rentals? If so, then you might want to consider whether it is worth it for you to take out motor-trade insurance if you wish to offer cover to your business. It is important to note that many factors affect the price that is charged for the policy. Some areas will have higher rates of crime, for instance, and work premises that house many cars can be prime targets.
Sometimes it might not be easy to be honest with your insurance company, but that is the most important part of getting a good deal on your insurance premiums. The first tip is to remember to be honest about any accidents, near accidents, speeding tickets, or any other events that may impact your premiums. It is surprising how you can reduce your premiums when you form a good relationship with your insurance company.
4. Review vehicle types
When you buy a new vehicle, the one that is a work vehicle, you do not just buy it; you also buy an insurance policy to protect it. While some insurance policies are cheaper than others, you can reduce your premiums by understanding how the performance of your vehicle, its engine size, and how costly it would be to repair can impact insurance costs. It will be included in any motor-trader policy as well as the other vehicles that will be temporarily in your possession.
5. Get quotes from more than one company
You can find 15-20 quotes from the same company, but for a similar policy at the same period, you are likely to find at least five different quotes from different companies. Compare these quotations carefully to make sure that you are still getting the coverage you need while still obtaining a cheaper premium than with your current insurer.
All motor-trader insurers have their requirements for the insured drivers, and these vary little between companies. In every case, each insurer is trying to evaluate the risks of drivers having an accident with a customer’s vehicle. If there are many accidents attached to the drivers, or young drivers employed, then the premium is likely to be higher.
The 5 tips mentioned serve to provide information on how you can keep your premium down. It should be noted, though, that not every insurer will offer motor-trader insurance. It is quite specialist. This does limited shopping around to a degree. It is well worth checking the internet, however, to receive that competitive quote that can make all the difference to your business expenses and so profits.
Such an interesting post!
Danielle | thereluctantblogger.co.uk
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