Every company in the motor sector should make cutting costs a top priority. You can discover the best coverage for your needs if you go about it the right way and spend some time studying. It’s easy to forget that there are motor trade insurance UK discounts available to businesses of all sizes and sorts in the motor sector.
You can save money on insurance for your motor trade business by following these easy steps discussed in the blog, regardless of the size of your company or its budget, and without lowering your coverage, service, or the amount of your excess or deductible.
Avoid high performance and customized vehicles:
Don’t engage in selling customized or high-performance vehicles. Even if some insurers will cover them, the premiums will be higher because they are considered higher risk. This is especially true for specialized firms. Consider a private vehicle policy; more attractive cars have a higher risk of being stolen or damaged in an accident. That’s why it’s tougher to insure them under a standard vehicle dealer insurance.
Transfer or mirror your no claims bonus:
If you’re just beginning out in the motor industry, a great piece of advice is to transfer or replicate your private no-claims bonus. No-claims bonuses (also known as no-claims discounts) can be transferred from personal vehicle or commercial vehicle policies to motor trade policies. When you initially start paying for insurance, this can help you save.
The only real drawback is that if you close your motor trade business, your no-claims bonus will usually not transfer back to the individual policy. Your no-claims bonus can also be replicated. Because of this, you can use your good driving record on both your personal vehicle insurance and your commercial vehicle insurance. However, this strategy comes with the additional cost of maintaining both your personal vehicle insurance and your commercial vehicle insurance policies.
Choose policyholders wisely:
If you have a lot of younger drivers on your motor trade policy, you can lower the risk by limiting the number of drivers listed. Keep only drivers who are at least 25 years old and who have no traffic violations or major convictions on your coverage. When hiring new employees, it’s important to check their driving records to prevent unexpected expenses down the road. The ‘any driver’ option is available, but it comes at a higher premium.
Pick a greater excess:
The larger the excess on your insurance, the more of the claim’s costs you’ll be responsible for paying out of pocket. However, it is crucial that you have the financial resources to cover the excess should you need to file a claim. For instance, if you’re a car dealer with a garage and a customer’s vehicle rolled down the ramp, you’ll need to file a claim under your combined motor trade insurance policy.
Choose your location and structure with care:
Insurance premiums will be higher or you may have trouble finding coverage if you live in a region with a high rate of violent crime or flooding. Location-related concerns should be thoroughly considered while exploring potential commercial space. Choose your business location wisely, as problems with insurers and higher premiums may result from using a historic property, a shared location, or a building with unusual construction.
Consider safety measures:
Don’t make yourself a convenient target for thieves. In order to prevent criminals from attacking your organization, it is recommended that you install closed-circuit television cameras, store vehicles in a garage or behind a gate, equip your building with security lighting, and use high-quality burglar alarms. By taking these precautions, you can show your insurance company that security is a top priority, potentially resulting in a reduced premium.
You should also watch what you share on social media, as that could reveal when you are more likely to be a target, such as over the holidays. Never, even if you are working in close proximity, leave valuable or easily stolen objects out in the open during business hours. It won’t take more than a minute, but the expense of replacement could be significant.