Insurance

Eight useful motor trade insurance facts

If you are thinking of taking out this type of insurance, here are eight important considerations.

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1 Design of policies

Motor trade insurance is a business or commercial insurance policy available only through brokers. The insurers favour issuing policies and dealing with claims, but leave the policy’s general upkeep to the broker who takes a percentage of the total premium.

2 No claims equals rewards

Your premium is computed using different rating factors. A major factor is the policy’s no-claims bonus. This gives the insurer the big picture of how the policy holder handles their insurance. If there are five years plus on a policy, major discounts will apply.

3 Younger drivers

You age is another important factor, as is the age of other named parties on the policy. It is generally understood that younger drivers are more reckless and more likely to make a claim, pushing up premiums.

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Insurance for young drivers is investigated here: https://www.moneysavingexpert.com/insurance/young-drivers/.

Insurance firms covering this market include Quotemetoday.

4 Location matters

Postcode and location are also significant. Inner-city postcodes are higher-rated than rural ones, so you pay less in the country.

5 Multiple claims

If you have made claims whilst holding an insurance policy, this impacts significantly on the overall premium. A policy that is constantly appreciating claims becomes ‘distressed’ and will be too risky for an insurer to take on.

6 Fact finding

A broker will ask various questions when examining your profile. You may be asked what you paid last year or what has been your best quote. Be truthful – some insurers have minimum premiums you might lose if you answer incorrectly.

7 Don’t cancel early

Don’t cancel your insurance before the policy ends. Major cancellation costs apply, and some insurers will not give any refunds after six months. Your best option is to wait until the next renewal date and compare the market then.

8 Account handling

Much insurance is handled via call centres. Everybody knows these are frustrating as you are passed from operator to operator. However, some brokers have chosen an office-based approach, guaranteeing that you have a dedicated account handler to deal with any adjustments or questions on your policy.