Obtaining great motor trade insurance has a different meaning for each type of business. It is especially important to sign up for the right policy that meets your requirements and is available at a competitive price. Below, we will outline five simple tips to follow that will assist you in finding the right insurance policy. These tips could potentially be the difference between buying cover that is not required, over paying for your insurance policy or even exposing yourself to potential associated risks for not having the right cover when it matters most.
Cover exactly what your business needs
Before speaking to a broker, it is essential that you try to identify what your business needs are including the type and level of cover you require.
- Are your tools and equipment protected elsewhere?
- How important is it to get cover for your business premises?
- How many staff members need to be added to your policy?
By carefully considering your requirements, you can avoid overpaying for cover that is not required. However, you don’t want to underpay for the policy either, as this could potentially put you at risk of paying out a large sum of money in the event of an incident occurring because you didn’t have the appropriate cover in place to begin with. To provide suitable protection in the long term, it is recommended that you be as specific as you can be about your motor trade insurance needs, this will ultimately give you the most suitable insurance policy.
Contact a broker
To obtain the insurance policy that is most suited for your business needs, it is important to contact an experienced motor trade insurance broker such as Utility Saving Expert. They are able to get in contact with a number of insurers on their panel and assist you in finding the most competitively priced policy. Additionally, they will be able to give you knowledgeable advice when understanding what type of protection your business requires. Brokers can utilise their experience and are able to identify consumer requirements by conversing with them and helping them find a competitive price that suits them.
No claims discount (NCD)
To reduce the cost of your motor trade insurance policy, a good no claims history will be beneficial. If your business has been operational for many years, and you’re able to provide evidence that you are a safe and careful driver to the insurer, you are likely to receive a discount for the cover you require. Having a no claims history for more than four years may allow you to save a large sum of money. As a recommendation, it is best practice to only make claims for things you really need, this will ensure you are able to keep your no claims discount bonus. If you are involved in an incident and you’re able to find a solution with your own skill set and tools, it is not necessary to recover the money through your insurance. It is better to spend a small amount of money compared to losing your no claims discount (NCD) bonus which you have built up. Many insurers give you the option to protect your no claims bonus with an additional cost. Although it does increase your premium, this can be very useful when it is time to renew the policy.
Setting up the business
Carefully consider any impact your location would have on your motor trade insurance policy when moving to a new premise or setting up a new business. By locating or relocating to a high crime area, a densely populated town or city, or even a flood plain may lead to a higher insurance premium. Try to find the right balance between potential business revenue and all associated costs from the location compared against the insurance premium due to where you are going to be based. Lastly, it can be difficult to find insurance if you are under the age of 25 and starting a new business. You will find that unfortunately some insurers are not comfortable offering you a policy if you are entering the motor trade industry at a younger age. Depending on your finances, you may want to consider waiting until you are 25+ before setting up your new business.
By increasing your excess cost, you may see your insurance premium is reduced. When taking out a motor trade insurance policy, check the price difference of your insurance policy compared against the different excesses you can choose from. It is recommended to not increase your excess by too much, because in the event that you do have to make a claim, you could have to pay a large amount of money towards any claim. Insurance policies are for your protection and peace of mind.
In conclusion, when trying to find great motor trade insurance, it is recommended to pay a little extra towards your premium to find the type and level of cover that meets your requirements as opposed to looking for shortcuts which could potentially leave you with large sums of money to pay in the event of an incident or accident.