Motor Trade Insurance

How much Motor Trade Insurance and the Cost?

The cost of 'premium' you pay depends on the insurer (searching around for quotes) and other factors such as the level of cover, driving record and age of drivers, type and size of vehicle and the nature of your motor trade, such as sales offices and showrooms, garage and repair workshops, engineers and mechanics, which experience different risks.

Road Risk

A mandatory insurance. Select the level of cover level of insurance that suits your business and vehicle(s):

• Comprehensive (most costly but most the cover)
• Third Party, Fire and Theft (cheaper but less cover); or
• Third Party Only (the bare minimum and cheapest)

Employers Liability

Employers Liability Insurance is a legal requirement.

The level of Employers Liability cover your business needs depends on your business, and the risks to health and safety involved and the number of employees.

Cover should usually be at least £5 million, however most insurers offer cover of at least £10 million.

Public Liability Insurance

The price of quotes will increase due to:

• The higher level of risk associated with your motor trade business, its turnover and the number of employees.
• Higher business turnover attracts greater premiums.
• More employees will increase the cost of cover

Extras

To assess whether you require the optional extras consider with your broker or agent the likelihood of claiming against each option, and the value to be gained from a claim.

• Product liability
• Material damage cover for buildings, contents, stock and vehicles
• Demonstration cover for loss during customer product demonstrations
• Business interruption cover for loss of profits from insured events such as fire or flooding
• Engineering inspection cover for inspection of plant required by UK law
• Goods in Transit - Own Goods loss or damage to your own property while in transit in your own vehicles
• Theft by employees against loss of money or property as a result of employees' dishonesty
• Legal expenses for solicitors' fees and expenses, barristers and witnesses, court costs, and opponents' costs if the verdict goes against you
• Computer insurance to cover loss or damage to computer equipment and valuable records
• Deterioration of stock unusable as a result of unforeseen deterioration
• Group personal accident and sickness for bodily injury or inability to carry out normal working activities

Cheapest Motor Trader Insurance

Lowest prices for insurance are gained when following some simple guides.

• Older drivers - over 25 and under 65 - 70 are the cheapest to insure. They should have a clean UK driving licence, and ideally have lived in the UK for two years with no convictions in the last 5 years
• Limit the number of drivers - the "risk" of a claim increases with the number of drivers on your policy
• Avoid sports or high performance cars, vintage, veteran, or classic cars, agricultural vehicles and horseboxes
• Limit breakdown recovery to 25% or less of your total business
• Track down insurers who will allow you to pay your insurance premium monthly - why pay for a whole premium upfront?
• Don't buy cover you don't need, eg.
  • Demonstration cover for vehicles being test driven by potential buyers, if it doesn't apply to you. Many insurers provide demonstration cover free of charge, by the way.
  • Green card cover, if your business doesn't take you to Europe
• 'Grey' imports, leased vehicles and vehicles adapted for disability are looked on as higher risk
• Vehicle salvaging, dismantling (even for spare parts), breaking, scrap, sale of parts or recovery are more expensive to insure
• Go for a combined policy with the one insurer - cheaper than taking out individual cover for different risks
• You'll get discounts on fire and security equipment such as alarms, locks and CCTV