If you are looking at getting motor trade insurance, then before you sign on any dotted line you need to make sure that you shop around and do thorough research to ensure you are getting the deal that is the best value for money.
Although motor trade insurance premiums are generally quite high, by doing quantitative and qualitative analysis you can reduce the price. It is important that though you will want to find the cheapest deal available to save some money that you don’t compromise on the level on quality of coverage just to save some money. In the follow post we will cover some helpful tips to help you on your search.
No Claims Equals A Reduced Premium
A large majority of motor trade insurers will give a lower priced premium to customers who do not have any previous claims on insurance. The reason for this is that these particular individuals are considered to be very low risk and many companies will offer as much as a 60% discount. It is also important to note that this premium reduction is incremental, which means that the longer period of time you have gone without claiming on your insurance in the past, the higher the discount you are likely to be offered.
The Type of Business You Have Will Determine How Much You Are Discounted
Another aspect that an insurer will take into consideration that will affect how much of a discount you will get on your premium is the business activities you are involved in. Body work and MOT are considered by many motor trade insurance companies as being low risk. Therefore, if that is the type of work your business does, you can expect a low insurance premium.
However, businesses involved in damaged vehicle salvaging, breakdown recoveries and dismantling are consider much riskier.It is most likely if you are involved in a business that does jobs like these, you will not receive any discounts on your insurance premium. Obviously, it is not a good idea to lie about your business practices just to get a lower premium insurance policy, as this may nullify your policy completely and leave you without any protection.
Some Other Factors That Affect Premiums
If your business involves luxury vehicles, then you will probably be quoted higher premiums than other businesses of at least 10% more. This is because any claim on luxury cars could reach the thousands and luxury cars are targeted by thieves. However, company cars are eligible for low insurance if they don’t have any previous claims and have been used for many years. If you want to make sure that you are eligible for discounts on insurance, you need to make sure that only the individuals named in the insurance documentation are authorized to drive the vehicles. The reason is that if an unauthorized person is involved in an accident while driving, the insurer has the legal right to cancel your policy without paying a penny.