If you are out looking to purchase motor trade insurance, don’t simply put your signature on the dotted lines. Perform extensive research to make sure you get the best deal ever, and value for your money.
In general, motor trade insurance premiums are normally significantly high, but by undertaking both qualitative and quantitative analysis, you can obtain lower prices. However, you must be careful not to comprise on quality of coverage offered just to save money. In this article, we will discuss some handy tips to help you perform industry price-value analysis, and get the best motor
Low number of past claims equates to lower premiums
Most motor trade insurance companies such as Footman James charge clients who with no past claim records lower premiums. The logic behind this is that in the eyes of the insurer, these individuals pose low business risks. As such, majority of insurers will be willing to offer up to 60% discount on the premiums. It is important to note that the quantum of discount offered is incremental. Even after signing your first deal with the insurer, you can still negotiate for further reduction in premiums provided you maintained your no claim record. In simple terms, the longer the period you have covered without making any claim, the higher the amount you can get as a discount.
The Type of Business You Run Will Determine How Much You Will Get Off the Price
The nature and type of business activities that you engage in is another key factor motor trade insurers will take into account when determine how much discount to offer. Generally, MOT and body work are assumed by insurance companies to be low risk businesses. As such, if you are in these types of business, you can expect huge discount on your premiums.
On the other hand, firms engaged in breakdown recoveries, dismantling and vehicle salvaging are considered to be high risk businesses. Consequently, if you are engaged in a business that performs these tasks, you may not win any discount at all.
A word of caution; it is not wise to lie on the nature and type of business you are involved in just to be ranked as a low risk client and pay lower premiums. Doing so may result to nullification of your policy. It is considered a direct violation of the utmost good faith principle of insurance that require you to disclose all material aspects related to the subject matter of insurance policy truthfully and honestly.
Other Factors That Determines How Much Premiums You Will Pay
If your business deals with luxury cars, you are likely to receive motor trade insurance quotes that are at least 10% higher than other businesses. The reasons behind this is the fact that a claim on a luxury vehicle will easily hit thousands of dollars, and luxury cars are more targeted by thieves. However, in case of company cars that have been used for many years with no previous claims, you should obtain a discount on the premiums charged.
Lastly, for any chance of receiving discounts on your motor trade insurance policy, ensure the person named in the policy is the authorized driver of the car. The logic behind this is that in case an unauthorized driver is involved in an accident, the insuring company has a legal right to repudiate the policy and pay nothing.