How much does motor trade insurance cost?
The average cost of motor trade insurance in the UK currently stands at approximately £776. This marks a substantial £222 rise from the previous year, representing a 40% increase over the past year.
The cost is influenced by various factors. These include the nature of your business, the types of vehicles you handle, and the required level of cover. To obtain personalised quotes and expert advice, consulting with motor trade insurance specialists is highly recommended.
Motor trade insurance is crucial for automotive businesses. It encompasses sales, repairs, and various other activities. It provides essential protection against numerous risks, ensuring seamless operations.
This guide aims to simplify the complexities of motor trade insurance costs. It assists you in selecting the appropriate policy. The premiums are influenced by factors such as your business type, the types of vehicles involved, and the level of cover required.
What is motor trade insurance?
Motor trade insurance is a specialised form of insurance designed for businesses in the automotive industry. It encompasses a wide variety of activities. This includes businesses that buy, sell, repair or modify vehicles.
This type of insurance is crucial. It provides essential protection against numerous risks associated with handling customer vehicles and running a business in this sector.
The policy typically includes road risk insurance. This is vital for businesses that need to drive customer vehicles or cars owned as part of their operations. It ensures employees are covered when driving or working on customers’ vehicles, as well as vehicles owned by the business.
Whether you run a car dealership, a repair garage, or a valet parking service, motor trade insurance is key. It offers the necessary coverage to keep your business operating smoothly.
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Get QuotesWhat factors influence the cost of motor trade insurance?
The cost of motor trade insurance is shaped by several interconnected factors. The specific nature of your motor trade business plays a crucial role. Different sectors such as mechanics, car dealerships, or breakdown recovery services face varied risk profiles. Consequently, this affects insurance costs.
The geographical location of your business premises is another pivotal factor. Areas with higher crime rates tend to result in increased insurance premiums. Additionally, the size and complexity of your business operations can influence the cost. Larger businesses generally face higher premiums.
The types of vehicles you handle also play a part in determining the cost. Businesses dealing with high-end, expensive vehicles are likely to incur higher costs compared to those dealing with older, lower-value vehicles. The driving history of individuals listed on the motor trade policy is a significant consideration. Particularly, any driving convictions are crucial for insurers when determining the cost.
Lastly, the level of coverage required to adequately protect your motor trade operations will also impact the overall cost of the insurance. By understanding these factors, businesses can better navigate the complexities of motor trade insurance. This helps in finding a policy that aligns with their specific needs and risk exposure.
What are the different types of motor trade insurance?
Motor trade insurance comes in various types to cater to the different needs of businesses within the automotive industry. The main types include:
- Road risk insurance: This is the most basic form of motor trade insurance, covering vehicles on the road and at your business premises. It is suitable for businesses that require driving customer vehicles or their own vehicles as part of their operations.
- Liability motor trade insurance: This type provides coverage for liabilities to customers and employees. It includes public liability, employer’s liability, and sales and service indemnity.
- Combined motor trade insurance: This comprehensive policy combines road risk cover and liability cover, catering to motor traders who operate from specific business premises. It covers a wide range of risks including damage to your property, tools, equipment, and money.
These types of insurance can be tailored to suit the specific needs of your motor trade business, ensuring that you are adequately protected against the various risks associated with your operations.
How to find the best motor trade policy for your business
To find the best motor trade insurance policy for your business, begin by thoroughly assessing your specific needs and the risks associated with your operations. Ensure you provide accurate and complete details about your business when seeking quotes, as this will influence the accuracy and reliability of the quotes you receive.
Utilise your no-claims bonus if you have one, as this can significantly reduce your premiums. Consider applying driving restrictions to your policy, as this can also lead to cost savings.
Make use of comparison websites to compare quotes from different insurers. This helps you get a sense of the market and find a policy that offers the best value for money. Don’t just focus on the price; pay attention to the coverage provided to ensure it meets your business’s unique needs.
Consulting with a specialist motor trade insurance broker can be beneficial. They have the expertise and knowledge of the market to help you find a policy that suits your specific requirements. They can also assist in navigating the complexities of motor trade insurance and ensure that you are adequately covered.
Remember, the cheapest policy is not always the best. Make sure you understand the terms and conditions, and the level of coverage provided, to ensure that your business is fully protected.
What additional cover can I add to my motor trade policy?
Additional cover options for your motor trade policy can significantly enhance your protection, catering to the specific needs of your business. Some of the options include:
- Buildings cover: This is crucial whether you own or rent your business premises, providing protection for the physical structure of your buildings.
- Employers’ liability: This cover is mandatory if you have employees, helping protect you against claims from employees who might get injured or become ill because of their work.
- Tools and equipment cover: This provides protection for the tools and equipment stored on-site, ensuring that you are covered in case of damage or theft.
- Vehicle cover for vehicles stored on-premises: This is essential for businesses that store vehicles at their premises, providing cover in case of damage or theft.
These additional cover options can be tailored to suit the unique requirements of your motor trade business, ensuring comprehensive protection.
How can I reduce the cost of my motor trade insurance?
To reduce the cost of your motor trade insurance, focus on only paying for the cover you actually need, avoiding unnecessary extras.
If your business deals primarily with standard vehicles, opt for a policy that covers just that, steering clear of ‘any vehicle’ policies which might charge more for covering specialist vehicles like HGVs, high-performance, or classic cars.
What is the role of a specialist insurance broker?
A specialist insurance broker in the motor trade sector plays a crucial role in helping businesses find the right insurance policy tailored to their specific needs. They possess in-depth knowledge and understanding of the motor trade industry, enabling them to offer expert advice and guidance.
These brokers work to understand the unique aspects of your business, ensuring that all potential risks are identified and adequately covered. They have access to a wide range of insurance providers and can compare different policies on your behalf, helping you find the most comprehensive cover at the best possible price.
In addition to helping you secure the right policy, a specialist insurance broker also provides invaluable support in the event of a claim. They act as your advocate, helping to ensure that the claims process is smooth and that you receive a fair settlement.
By leveraging their expertise and industry connections, specialist insurance brokers in the motor trade sector play a vital role in helping businesses protect themselves against the unique risks they face, providing peace of mind and security.
Looking for cheap Motor Trade Insurance? Get your quote today!
Get QuotesHow to compare motor trade insurance with SimplyQuote?
At SimplyQuote, we’ve developed a user-friendly online comparison tool to help you navigate through the myriad of motor trade insurance options available. Our platform is meticulously designed to simplify your search, ensuring you find a policy that’s not just affordable, but also perfectly tailored to meet the unique demands of your business.
Whether you’re in need of comprehensive cover or just the basics, we’re here to guide you to the best possible deal. By inputting detailed information about your business and the specific type of insurance you require, you enable us to generate a variety of quotes from numerous insurance providers. This ensures you have a broad spectrum of options to choose from, helping you make an informed and confident decision.
At SimplyQuote, we take pride in making the insurance comparison process as straightforward and easy as possible. We are committed to assisting businesses in the motor trade sector to find and select the insurance solution that aligns seamlessly with their needs, providing peace of mind and security.