Please note these definitions are for guidance only. For full definitions please refer to your policy document.
Top Tips to reduce your motor trade insurance premium
No Claims Bonus – No Claims Bonus – The discounts for no claims bonus earned on a previous motor trade insurance policy range from 20% up to 60%, which means significant savings for those with a proven claim free record. Even if you don’t want to transfer your no claims bonus, a mirrored no claims discount may 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 traders 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.