Top Tips for Saving Money on Motor Trade Insurance

The spring can be a profitable period for operators in the motor trade, with March usually seeing a peak in activity which follows through into the next few months. Data from the Society of Motor Manufacturers and Traders confirms that activity in March was better than had been expected, with private registrations up 7.4 per cent from the previous month. This flurry of activity in the new car market then filters through the re-sale sectors, presenting opportunities for traders.

With this in mind, now is the ideal time for smaller traders to make sure all their business operations are in order, which includes the use of a suitable insurance policy. Policies come in a variety of forms, with different levels of cover available and a range of prices, but having the incorrect coverage can prove costly in the long run. It is therefore advisable to take expert advice and choose a policy which can be individually tailored.

For many motor traders looking to grow their business, the cheapest policy may seem like the best option, but there is a balance to be achieved between the level of cover and the price paid. Too much indemnity on the policy and you’ll pay higher premiums, but have too little and you will be required to make up the shortfall after any claim.

To achieve this balance and ensure you save as much as possible on an insurance policy, it is important to consider some variables. Firstly, how many cars do you expect to sell in a year? If it is no more than three, a simple private insurance policy that can be transferred from car to car may be a better option.
Secondly, you need to think about whether your premises need insurance. If you are operating from home then, after checking with your broker, you may find that this is sufficient. It should, however, be supplemented with cover for transporting motor vehicles. Lastly, think about what type of cars you are selling, and adjust the indemnity level accordingly. If you change the type of cars you sell, update your policy as soon as possible. Remember, you don’t need cover for supercars when you’re selling hatchbacks!

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