Ways to Reduce Your Premium with Motor Trader Insurance*

When you are a business, whether working from home in a mobile capacity or your business premises, you will look to reduce the kinds of expenses that will stand out on your profit and loss account. If we think that our insurance figure is on the high side, then renewal time is when we have the best opportunity to do something about it. The best way to address the situation is to look for a more competitive insurer to switch to.

To see what else is out there, bearing in mind that not everyone offers motor trader policies, you might like to check out companies like https://www.onesureinsurance.co.uk/motor-trader-insurance.

Below, we will think about other ways that will mean any motor trader insurance quotes you receive will be less than they might have been.

Avoid Dealing in High-Performance or Luxury Vehicles

Dealing in high-performance vehicles, when it is not your main business, may cost you money. Nobody wants to turn customers away, but for the sake of a few customers, you might find yourself paying a lot more for insurance. It is something to think about in your business plan.

We might deal with more valuable or luxury vehicles, whether we are working on the vehicles, cleaning them, or selling them. They represent a higher risk to insurers because of their value, often their greater engine size, and their desirability when it comes to what vehicle a thief might look to steal for maximum gain.

Modified vehicles are also considered a higher insurance risk if taking on those as motor traders. This risk will concern an insurance company, which will react by putting the premium up to mitigate their risk.

Take Care Which Drivers You Employ

It is a good idea to check for motoring offences on a driving licence before employing someone. It should be part of the checking process when you recruit someone who will be put on your motor trader policy. Apart from the inconvenience employing them might potentially cause, because of their history, the person who speeds for perhaps the fun of it, will invariably put-up insurance costs. 

Young drivers, which are those under 25 years of age in insurance terms, will also impact your premium and push it upwards. We are not saying do not employ younger drivers, just that they will have to more than prove their worth to make up for the extra they cost in insurance.

Policy Excesses

The part of a claim that you pay as the insured is known as the excess. It can be a compulsory one that has been applied to a policy to keep it competitive or one that is voluntary and accepted in exchange for a reduced premium. Either, way, they are a means of obtaining a better-priced motor trader policy. Any way a business can save money will be a way that helps to ensure its survival.

The knock-on effect of paying too much insurance is that we have to pass that cost on to our customers, and that will mean not attracting so many when they simply go elsewhere for a better price. What you are trying to achieve as a garage, perhaps, is the same as what insurance companies are looking to do. Lower prices generate business but, at the same time, profitability has to be taken into account.

If you elect for the highest voluntary excess you are prepared to accept, then this will have a significant effect on the premium that is payable. Lower premiums because of higher excesses mean more risk to you but also more affordability.

Storage of Vehicles

Consider how you would store vehicles overnight. Are they left on a forecourt or put inside a garage? Insurers will be able to offer better rates where vehicles are secured in a locked compound, or better still, kept inside a locked garage.

It is not always possible, but if you can achieve secure storage, then it will lower the insurance premium on a motor trader policy or any other motor insurance. Many of the same insurance factors are applied to policies to work out premiums.

Avoid or Check for Add-Ons

Finally, check for policy add-ons that are making things more expensive. There may be a cover that you do not need when you check a policy document or quotation in detail. A new insurer will help you to eliminate your old items of unnecessary or, sometimes, duplicated cover. You will want to make sure that your motor trader insurance cover is like for like as a minimum, though.

There are many ways to reduce insurance premiums with motor trader insurance. The above should act as a guide, when it comes to negotiating with your new insurer. The insurance sector has not been known for its loyalty to existing customers and so it always pays to shop around.