The do’s and don’ts of buying Motor Trade Insurance



February 14th 2014



When you are looking for the very best Motor Trade Insurance, it pays to have a little foreknowledge. Here are several handy tips to ensure you are not only getting the cover you need, but that you are also getting it at the best possible price.



Do’s

Before you even contemplate buying Motor Trade Insurance, you do need to make sure that this is genuinely the right choice of insurance for you. Some people believe choosing a policy like this is a cheaper option to become insured on any vehicle. This is not the case and insurance companies will require proof that you are a genuine motor trader.

Don’ts

The best Motor Trade Insurance will be vastly different from a standard vehicle insurance policy. Don’t assume that the same rules apply. Knowing the difference in specifications, when it comes to policy, will make sure you get the right deal.


Do’s

It is imperative that if you require cover for your premises, as well as vehicles on the road, that you choose combined insurance. This will, in most cases, also cover you for liability. As always, it pays to check with a broker to make sure that every box you need is ticked.

Don’ts

Don’t forget to check which type of insurance is best for you. For example, many third party policies will not cover damage to a customer’s vehicle or even to your own. The right comprehensive insurance, however, will give you all the piece of mind that you need.


Do’s

As simple as it sounds, it pays to shop around. Your best course of action is to pick up the phone and actually speak to an insurance specialist. Not only will they give you the information you require, but an actual conversation also opens up the door to the greatest tool at your disposal: the ability to haggle on price!

Don’ts

Don’t just click through site after site or hope that a price-comparison website will do the hunting for you. The figure that pops up telling you how much you can save might not be all it’s cracked up to be. It is useful to have them as a guide, but make sure you speak to someone before you make your final decision.


Do’s

As with standard driving insurance it pays to make the most of your no claims bonus. Discounts for being a careful driver can range from 20% to 60%, so do make sure you mention anything that could save you a substantial amount of money.

Don’ts

Perhaps you don’t want to transfer your no claims bonus – not a problem! It is still worth looking into a mirrored no claims discount, allowing you to essentially enjoy the discount on your personal and work cars. Be careful if you transfer back, however, as moving from a commercial contract to a private policy may mean you lose any bonus accrued whilst on the work contract.


Do’s

Brush up on your “indemnity limit” knowledge. An “indemnity limit” is the maximum amount an insurer will pay out for any one claim. If you need to cover a number of vehicles, you’ll need to have a maximum figure in mind to discuss with your agent.

Don’ts

Do not drive a vehicle that has a higher value than your chosen indemnity limit. Perhaps you’ve found yourself in charge of a luxury car thanks to circumstances changing. If this is the case call your agent and let them know.


Do’s

Always remember that you must let your insurer know if there are any changes to your circumstances. Without keeping your insurer up-to-date you could invalidate your policy and any claim, especially if you stop trading. Looking on the bright side, changes in circumstance could see a reduction in your premium.

Don’ts

Never just settle for the cheapest option. Of course you want to save your company a few pounds, but if it is at the cost of the right policy you could end up giving them, and yourself, a much greater problem further down the road.