Motor Trade Combined insurance can offer this coverage however insurers generally offer it as a separate policy. Always read the specifics of the policy you take out. Having such a provision within your policy offers that essential peace of mind, knowing that one of the most critical tools of the trade is protected against unforeseen events. It's the safety net that is essential with motor trader policies and ensures you can keep your business revving along smoothly, without any unexpected and costly key-related roadblocks.
17/12/2024 | Category: Motor Trade Combined Insurance
Motor Trade Combined insurance is a safety net for anyone operating within the motor trade industry. From car dealers to mechanics, not having the right cover can lead to serious legal repercussions. However, the cost of Motor Trade Combined insurance can vary greatly, influenced by several factors. In this article, we will explore these determining elements in detail.
Nature of your motor trade business
The first factor that influences your Motor Trade Combined premium is the nature of your business. Motor trade businesses that deal with high-value, luxury vehicles often have to pay a higher premium compared to those dealing with older, cheaper cars. This is primarily because the potential financial risk associated with expensive vehicles is much higher.
Business location
The location of your motor trade business also plays a significant role in determining your insurance premium. This includes whether you operate from a separate premise such as a car lot or conduct your business from home. The risk of flooding, crime rates, and other regional factors are taken into account when calculating your premium.
No claims bonus
A no claims bonus may be given to policyholders for not making a claim during their policy term. This can significantly reduce your Motor Trade Combined premium. The longer you have a no claims bonus, the higher discount you might receive on your premium.
Number of drivers
The number of drivers on your Motor Trade Combined policy can also affect your premium. More drivers mean a higher risk of claims, which can result in a higher premium.
Level of cover
The level of cover you choose will also influence your premium. Cover with more protection and optional extras tends to be more expensive than standard cover.
Motor Trade Combined insurance considerations
To get a quote for Motor Trade Combined insurance or to receive a quote for any of our other insurance products, you can get a quote through our website. If you would like to talk to one our insurance team, you can give us a call on 01384429900 to receive more information.
Vehicle security
The security measures you have in place for the vehicles in your care can also affect your premium. This can include things like alarm systems, CCTV, and secure overnight storage.
Experience in the trade
Your experience in the motor trade business can also impact your premium. Those with several years of experience may seen as lower risk and may receive a lower premium.
Voluntary excess
Voluntary excess – the amount you agree to pay towards a claim – can also affect your premium. By agreeing to pay a higher voluntary excess, you might be able to reduce your premium.
Payment method
How you choose to pay for your Motor Trade Insurance covert may also have an effect. Paying the premium in full, upfront may work out cheaper than spreading the cost over monthly payments.
Use of trade plates
The use of trade plates, temporary registrations for unlicensed vehicles, can affect your premium. If you regularly use trade plates, you may find that your premium is higher.
Business activity
Finally, the specific activities your business undertakes can affect your premium. For example, businesses involved in vehicle recovery often pay higher premiums due to the increased risk associated with this activity.
Frequently asked questions
What factors are considered less risky and may decrease the cost of motor trade insurance premiums?
Navigating the ins and outs of motor trade insurance cover doesn't have to be a bumpy ride. Certain factors can work in your favour, reducing what you pay while keeping your coverage robust. If you've got solid security measures in place, such as CCTV or a gated premises, you're also less of a risk for theft or vandalism. Additionally, opting for a higher excess can lower premiums, and demonstrating an experienced hand at the wheel with years in the trade can also lead to more favourable rates. Keep in mind in the event of a claim, the policy holder will have to pay more if opting for a higher excess.
How does my business premises impact my Motor Trade Combined insurance premiums?
The location, security, and structure of your business premises may influence your Motor Trade Combined insurance premiums. A well-secured facility with robust security measures such as CCTV, alarms, and gated access can be seen as a lower risk by insurers, potentially leading to more favourable premium rates.
Conversely, a premises located in an area with a high crime rate or poor structural integrity might be considered higher risk, increasing the cost of your cover. Additionally, the size and nature of your premises could affect premiums; larger spaces or those with additional features like public access showrooms may carry higher premiums due to increased risk exposure. It's crucial to accurately assess and convey the specifics of your business premises to secure a policy that not only offers comprehensive protection but also reflects a fair premium.