How Can I Reduce The Cost Of My Motor Trade Insurance?
When you’re running a motor trade business such as a garage, showroom or mobile mechanic, it’s vital to have the right kind of motor trade insurance. But, as with any kind of insurance cover, you need to know that you’re getting the right price.
There are many different things that can affect your insurance premiums, from the provider you work with, to your claims history, and beyond. So how can you reduce the cost of your motor trade policy, without compromising on cover?
For more information on this type of commercial insurance cover, take a look at our motor trade insurance FAQs.
What can affect your motor trade insurance cost?
Some of the elements that can affect your motor trade insurance cost include:
- Type of trade
The type of trade business you have can affect your premium – this is because it will affect the type of cover you need. If you don’t have a physical location such as a showroom, for example, you won’t need Property Damage or Buildings Insurance as an add-on to your cover.
- Size of the business
What type of business is it? Are you a large franchise with multiple locations and hundreds or staff, or a sole trader? The larger the business, the larger your motor trade insurance premium is likely to be as there are more elements of the business to be covered.
- Risk assessment
Is your shop or showroom in a high risk area? Do your named drivers have any claims history? What type of vehicles are you working on, how high value are they? All of these things and more can affect how high risk your business is deemed to be.
- Claims history
Have you had to claim on business or motor trade insurance previously? This can impact your motor trade insurance cost as insurers may consider you a higher risk.
This is not an exhaustive list, and there may be other factors that can drive up your insurance costs. However, there are ways that you can help decrease these costs and tackle the issues to bring down your motor trade policy price.
How can you reduce your motor trade insurance cost?
- Maintaining a good claims history
Of course, sometimes making a claim on your commercial insurance is unavoidable – that’s why we have cover in the first place. But by taking as many precautions as you can and keeping your business safe, you can keep a good claims history up and this should reduce your motor trade insurance premiums when it comes to renewal.
- Implement robust security measures
The more secure your business and equipment is, the lower your motor trade insurance cost is likely to be. Make sure your physical location is safe and secure, if possible in low-risk crime and flood areas and in a non-listed building.
Improve your business’ security by installing CCTV cameras, using gated or locked premises to keep
vehicles, and have good quality burglar alarms, can also improve your chances of a lower premium.
- Accurately declare your trade activity
Always be open and honest with your insurer about the activities and traits of your business. By omitting information or providing misinformation, you could face any claims being thrown out and your insurance void. This will also hinder your chance of getting cover in the future, driving up costs even more.
By accurately providing the information required by your motor trade insurance provider, you are also more likely to have just the type of cover that you need, rather than extra cover that is not relevant. This can also help bring costs down.
- Use a higher excess
If you have a low claims history and have the ability to, opting for a higher voluntary excess can help reduce the cost of your motor trade cover.
- Use a reputable insurance broker
One of the best ways to ensure you’re getting the right cover at the right price for you is by using a reputable motor trade insurance broker. These are experts who have strong relationships with national insurance providers who will get to know you and your business. Make sure you’re working with a broker you trust and with a good reputation, like Higos.
To get a quote on your motor trade insurance from our reliable and expert commercial insurance team, get in touch by calling 01458 270323 or Request a Call Back from us at a time that suits you.