ChoiceQuote - Motor Trade Insurance Tips
Please note these definitions are for guidance only. For full definitions please refer to your policy document.
Top Tips to reduce your premium
No Claims Bonus - No Claims Bonus - The discounts for no claims bonus earned on a previous motor insurance range from 20% up to 60%, which means significant savings for those with a proven record of claim free driving. Even if you don't want to transfer your no claims bonus, a mirrored no claims discount can be offered giving you a substantial reduction from your premium.
You may have spent many years in the motor trade driving under your employers policy and are setting up on your own for the first time. Discounts can be offered for drivers able to confirm a claim free record under previous company insurance.
Your Motor Trade activity - Specific activities within the motor trade can affect your premium. Many insurers will offer reduced rates for persons involved with Repair trades such as servicing, MOT preparation and body work. Other activities such as Breakdown Recovery or Vehicle Salvage and Dismantling are deemed more hazardous and can increase your premium. Specialising in performance or prestige vehicles will also bump up your premium. It's important to disclose all of your motor trade activities to ensure you receive the correct cover. Don't hide anything just to keep your premium low - this could prove costly if a claim is reported.
Restricted Driving - Having additional drivers on your motor trade insurance policy can be expensive. Always keep driving restricted to as few people as possible. It may be convenient to have casual drivers included to help move cars around but they may add several hundred pounds to your annual premium - it might be cheaper to buy a trailer and transport them yourself in the long term!
Voluntary excess - Having extra excess on your policy can save you money off your motor trade insurance, but beware; it'll cost you if you claim. Most motor trade insurance policies have a compulsory excess of £250, but this can be increased for a saving on your premium.
What to watch out for
Is a motor trade insurance policy the right cover for you? Many people mistakenly take out motor trade cover just to get cover to drive any vehicle. You must have a genuine business interest in the motor trade (full or part time) to be eligible and insurance companies may ask for evidence of this.
Vehicle Exclusions - All motor trade insurance policies will exclude certain vehicle types. Make sure the policy you have covers the vehicles you are dealing with - a list of the vehicles not covered is available from all insurers.
Trading from Premises - A standard motor trade road risks insurance does not provide cover against loss or damage to vehicles kept at business premises. Additional cover may be needed if you want this protection. However, most insurers do not class your home address as business premises.
Vehicle Values - Most claims payments under a motor trade insurance policy are made at the trade value of the vehicle(s) involved. You may find a shortfall in the payout if you have paid anything other than trade money for the vehicle(s) in question.
Additional occupations - If you are involved in the motor trade on a part time basis and have another occupation as your main business, the motor trade insurance policy may not cover you to use vehicles in connection with your main occupation e.g. you may be a builder that needs to use a vehicle to travel to different sites. Some insurers will offer an extension to include this additional use.
Cover and Benefits - Most motor trade insurance policies do not provide the kind of benefits normally associated with private car insurance. Things like windscreen cover, protected no claims bonus and courtesy vehicles may not be included even on Comprehensive policies.
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