For each individual their business needs and insurance requirements are different, meaning that there is no such thing as an average cost.
Insurance providers will factor in a number of things, including if you trade on a full time basis and how long you have been trading for.
Before entering into a new agreement, which generally commits you for 12 months, make sure you assess all options and compare all quotes and policies before making that final decision.
If your business involves working with vehicles within a commercial environment, regardless of whether you’re working from home or within a designated MOT centre, you will require motor trade insurance. It is a case of deciding on the level of cover and most suitable insurance company who can meet your insurance needs.
When deciding on an insurance provider, the quote you receive will be tailored to the specific requirements of your business, there are three types of cover to consider and decide which would be more applicable.
Firstly road risk covers vehicles from your home or at an additional cost include your business address. It enables you to legally carry out your duties in the motor trade and take the vehicles on the road.
Then you must decide how to split the road risk cover into;
Third party only, Third party fire and theft, or Comprehensive: when choosing a mixed policy, you can select from the above. With the choice of additional items such as public and employers liability, material damage or vehicles in transit.
If you are searching for the cheapest possible cover to keep costs down, you may want to consider third party only as the first option because it tends to be the cheapest
How do I get lower monthly premiums?
Ultimately when running your own business it often comes down to costs, particularly when you are first setting up. It is a known fact that insurance premiums make up a big part of your expenditure, so it is not unfair to feel that you want to get the lowest quote possible without impacting too much on the level of cover provided.
A number of factors that may influence the premiums payable are:
• Age of drivers named on the insurance policy. Those aged between 25 and 70 may mean a lower premium then those under the age of 25 so long as they have a clean licence and have been living in the UK for over 2 years.
• Don’t have any additional named drivers on the policy. Unless it is a necessary part of the day to day running of the business, by limiting the number of drivers named on the policy, you are limiting the factors that could influence a rise in premiums.
• The car types you specialise in dealing. IF you tend to deal with vintage, classics, imported vehicles or anything with a high performance engine, you need to accept the fact that this could impact on your insurance premiums, making them more expensive.
For a no obligation, competitive and individually tailored illustration of motor trade insurance for your company, contact Insure Motor Trade today on 0844 931 2020.
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