This is the question we get asked most often and in all honesty it is the most difficult to answer. It does all depend on your individual circumstances with many factors being taken into account such as proposer age, location of business, services offered, number of employees and experience when compiling a quotation. It also depends on which insurers are approached because they all have their own criteria, with some favouring certain areas of the motor trade. This is why working with a specialist broker is essential – we will search the market to get you the best quotes!
Although giving an exact premium with no details is almost impossible, we can tell you our road risk policies start from:
- Third Party £318* What does this cover
- Third Party Fire and Theft £382* What does this cover
- Fully Comprehensive £477* What does this cover
If you are new to the trade then getting a policy may be more expensive because of your lack of claims history. However, all is not lost because some insurers we work with will let you use private motor no-claims bonus on your trade policy, which can make your motor trade policy cheaper.
Age can be a big factor also – the younger you are, the more you’ll probably pay. This is probably one area you cannot change. Some insurers won’t consider you if you are under 25 whereas others have a lower age tolerance of 23 years. This can be frustrating from a motor trade point of view so it’s important that you deal with a specialist broker like Bollington that work with a wide range of motor trade insurers to get the best chance of cover.
Cheap doesn’t always mean value. It’s important to compare costs and cover at the same time. Brokers worth their weight will do this for you and recommend the most appropriate cover for your needs and budget. But remember that not all brokers are the same – some will only speak to a single insurer or a couple of insurers so won’t give you a fair assessment of the market. Bollington has established relationships with over 50 insurers and developed specialist schemes which are only available by speaking to us. Call us on 01625 854300 for a quotation.
Remember insurance is about the transfer of risk. If you don’t buy the right policy, you may not be properly covered when you need it the most. It’s best to be honest from the outset about your business or risk being left exposed. In our experience, it can often be easy to underestimate the cost of replacing items or compensating customers if something does go wrong. So if you want to skimp on one area of your business, please do not make it your insurance. This could quite possibly save your livelihood.
Spreading the cost of your insurance across manageable monthly payments is also possible. Many motor traders take advantage of this to help budget for the expense of insurance across the year, especially if you are starting out in the motor trade. This is normally available by paying a deposit (roughly 2 months worth of premium) at the time you take out your policy, followed by 10 monthly payments. Deposits can be paid by credit or debit card. Based on a third party only policy with a minimum premium, your monthly payment could be as little as £26.50 per month*.
Finance for your motor trade insurance is provided by an external company, subject to acceptance criteria and will involve a credit check. You will be offered this option when you speak to our motor trade advisors over the phone.
Please note that your motor trader insurance is still an annual contract.
*Prices correct March 2014.