Whatever it is we buy, we want to make sure we get the best deal for our money. It doesn’t matter whether it’s a loaf of bread at the supermarket or a brand new car, saving some pennies will always put a smile on your face.
It’s the same for businesses looking for motor trade insurance. You want to get the product that suits your needs, but at the lowest price available.
The key thing to remember in this instance is quality. The quality of insurance is the most important aspect of taking up a new policy. There are plenty of insurers offering super-cheap motor trade insurance, but the actual package you receive is unlikely to cut the mustard.
You must be wary about motor trade insurance offers that simply look too good to be true. Scammers will post advertisements on websites such as Facebook and Gumtree claiming they can provide cheap motor trade insurance, but, in the end, the policy you think you have purchased is likely to be non-existent.
In many cases, this is a practice carried out by so called ‘ghost brokers’ who will take the money from you and claim to put you onto a new policy, when, in fact, this is not actually the case.
If you fall for this trick, you will be left without appropriate insurance. This means that if you are the victim of an accident or incident and you try to make a claim, you will not receive any compensation from the insurer and may therefore be required to fork out a vast sum of money.
This could be fatal to your business, as a huge outgoing cost could cripple you financially. For small businesses in particular, this can be a real worry.
Furthermore, you are more likely to be pulled over by the police after your vehicle is recognised on one of the many automatic number plate registration (ANPR) cameras out on the UK’s roads for not having legitimate insurance. As a result, the police could confiscate your vehicle and you may be in line for a fine and criminal prosecution.
If this happens, you will face unexpected financial outgoings and the reputation of your business may also suffer as a result.
It is easy to be drawn-in to posts on Facebook and Gumtree about cheap motor trade insurance, but you must ask yourself one question: Is the company reputable?
There are a couple of ways you can check out a business’ credentials. For example, you could find out if they are registered with the Financial Conduct Authority and/or Companies House.
Some websites will look incredibly professional and will feature the logos of other reputable insurance companies to try and enhance this image. However, you must be vigilant against these insurance fraudsters. Not only should you avoid their tempting insurance offer, you should report them to the police if you suspect they are involved in illegal trading.
Despite all of these warnings against insurance brokers with offers that seem too good to be believed, it is still possible to get cheap motor trade insurance.
Speaking to a broker is your best option, as they will help you to find the best deal at the lowest available price.
Like we said earlier, the important thing to remember is quality. A broker will use their database of reputable and reliable insurers to find a policy that suits your exact business needs, as defined by you during a simple phone call.
They will then identify the best offers on the market, both in terms of quality and price, and will give you a choice of policies. You can then select the one that fits your business perfectly.
The policy you buy might not be as cheap as the ones from illegal sellers, but the most important thing is that you actually have the cover in place.
There is also the option of spreading out the cost of cover over a period of a few months. Like any personal car insurance policy, this is likely to make the price a little bit more expensive. However, spreading the cost of the initial outgoing could help to balance your business’ finances.
If you want cheap motor trade insurance in the future, there are huge benefits you can receive by remaining a careful driver. Building up a healthy no-claims record means you might able to save hundreds of pounds on future policies.
By making sure that you and your staff avoid any accidents or incidents you can be certain that insurance companies will gain trust in your business. This will result in cheaper policies in the long-term. By staying claim-free for five years or more, you could see the cost of insurance drop significantly.
Cheap motor trade insurance is certainly favourable for any business. However, you must make sure that you don’t compromise when it comes to the quality of cover you actually receive, as this could be more damaging in the long-term.