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How to reduce your motor trade insurance premiums

If you operate a motor trade business, it’s important to take out a motor trade insurance policy. Unicom Insurance is a leading provider of policies designed specifically for the motor trade, which can be tailored to meet your needs. Premiums have had a habit of rising over the past few years, but there are still ways of making savings if you know what to look out for.

1. Select your drivers carefully

Young drivers are more likely to be involved in accidents, so command higher premiums. If you insure a young driver on your policy and they have an accident, your No Claims Bonus will be affected. Ensure drivers are over 25, claim and conviction free and only offer social use to responsible employees.

2. Don’t insure too many drivers

Generally, the more drivers you choose to insure, the higher the risk perceived by the insurance company and the higher the premium, so restrict the number of drivers on your policy.

3. Protect your No Claims Bonus

Aim for a flawless, claim-free insurance record and you could qualify for some serious discounts on your policy. If you’ve formerly worked in the motor trade for another business but are now setting up on your own, you can still be eligible for discounts if you prove that you have a claim-free past under your employer’s insurer.

4. Consider your motor trade business

What is your business? If you specialise in body work, MOTs and servicing, you’ll be more likely to attract discounts, whereas trades such as breakdown recovery, dismantling or vehicle salvage tend to be regarded as more hazardous, so carry heftier premiums. Be upfront about your motor trade activities and don’t be tempted to cover anything up to lower your premium – if you have to make a claim at a later date, it may be rejected.

5. Set an appropriate indemnity level

You should neither over or under insure your vehicles. Set too high an indemnity figure and you will be over-insuring yourself and effectively handing out money to your insurer. But if you under insure and try to make a claim for a vehicle whose value is higher than the indemnity level, you could face a bill for thousands of pounds. Policies can be adjusted mid term so start low and build up as and when it’s needed. Consult your broker for advice if you are unsure.

6. Select an appropriate excess

In the event of making a claim, you will be required to pay an excess. The higher the excess, the less your premium will be. However, if you have an accident, you will have to pay out more towards the claim. Sometimes it can be worth choosing a higher excess, settling smaller claims yourself and protecting your No Claims Bonus and the cost of future premiums.

7. Keep your vehicles safe

Where possible, park vehicles off the street and in a drive or garage to minimise the risk of damage or theft.

8. Shop around

Compare providers online to make sure you’re getting the most appropriate cover for your business at a competitive rate. Talk to a specialist broker for advice on the policy that best suits you, remember that the cheapest premium is not always offer the best cover for you.

This was posted in Bdaily's Members' News section by Will Hemner .