Saving money on your motor trade insurance

Motor trade insurance has not been unaffected by the proliferation of comparison websites for those looking for cut-price deals on cover that is likely to be an essential part of any motor trading business.

The difference, in this case, is that there are fewer comparison websites for motor traders’ insurance (rather than standard motor insurance, for example) and the number of quoted insurers is also much smaller.

Even allowing for the smaller number of comparisons that may be made, however, is this likely to be an effective way of looking to save money?

The drawbacks

A comparison website might tell you the cheapest motor traders’ insurance, but they are considerably less helpful when it comes to describing exactly what is covered by any policy and even less use in helping you decide what cover your particular business needs.

Yet matching the precise needs and requirements of your particular, individual motor business to the appropriate products available is critical.

Saving money on your motor trade insurance is about securing the cover you need at a competitive price – it is about securing good value for money, rather than a bargain-basement price alone.

Indeed, in the past, the Competition and Markets Authority (CMA) has questioned whether some of the relationships between comparison websites and their insurers might work to the detriment of consumers – especially in areas such as motor insurance.

The benefits of a specialist broker

Instead of attempting your own comparison of different motor trade insurance policies, with its risks of settling for cover which does not precisely offer what you need, the expertise and experience of a broker specialising in insurance for motor traders may come into its own.

A specialist motor trader insurance broker has the knowledge, expertise and contacts with the whole of this sector of the insurance market to identify the particular elements of cover needed by your own business and to provide price-competitive quotations.

And there are typically many elements of cover to consider – if you are looking for value for money and the possibility of saving money by dispensing with cover that is not relevant to your business:

Your premises

• some businesses operate from lavish and well-equipped premises while others might run more modestly;

• insuring your premises for the appropriate amount ensures you have the protection you need, but without spending more than is necessary on your insurance premiums;

Public liability insurance

• similarly, with public liability insurance – a relatively modest operation still needs cover that provides indemnity against claims from your customers, visitors or members of the public who suffer an injury or financial loss through your business activities, and that is why public liability insurance typically provides protection for at least £1 million;

• a major motor dealership, on the other hand, may need public liability of considerably more – £5 million or even £10 million – but that means higher premiums of course;

• if you are interested in saving money, it is important to choose the appropriate level of cover;

Employers’ liability insurance

• you have less leeway when it comes to employers’ liability insurance since the law demands that you have a minimum of £5 million of cover – although a specialist broker is well-placed to ensure that this essential cover is also competitively priced;

Vehicles

• money may also be saved by ensuring that you have an appropriate level of cover against the loss or damage to customers’ vehicles in your care and to your own vehicles – including those which are driven on accompanied test drives.

Despite the many different elements of motor traders’ insurance that may be appropriate to your particular business, there are still likely to be opportunities for making savings on the price of the premiums you pay.