When looking to take out a new motor trade insurance policy, or renew an existing one, there are several things you can do to make sure you choose a policy that suits your business.
Before contacting your motor trade insurance broker to get a quote, you need to decide exactly what you want your policy to cover and have the facts of your business to hand. There are also some things that should be avoided when speaking to your broker, including not being honest and truthful about your motor trade business.
Here’s a quick guide to some dos and don’ts when choosing your policy to make sure you are making the right motor trade insurance choices.
1. Speak to a Broker
Finding an experienced motor trade insurance broker will be invaluable in getting the right policy for your business. They will have extensive knowledge of the cover your business needs and will speak to several insurers to find the policy with the best value.
One of the most important things to do before speaking to a broker is to identify exactly what cover you need by being as specific as possible. Aside from choosing whether you want third party or fully comprehensive road risk insurance, you need to think about which areas of your business requires the most cover and look at all the options.
2. Don’t Ignore the Optional Extras
A good broker will outline the optional extras specific to your business. If you sell cars, you may be looking at demonstration cover, or carriage of vehicles for those who have recovery trucks as part of their company. If you keep vehicle stock on your premises, or tools and equipment, have these all covered in case of theft or damage. The same goes for the building itself.
Liability insurance is an important area for most businesses whether that is cover for employers’, the public or products. The optional extras may push up the price of your premium but can give important financial protection in the long run.
3. Be Honest and Upfront with Your Broker
When speaking to a motor trade insurance broker, you need to be honest about your company and the work that you do. The broker will check with you about your previous claim history (and that of any other employees), motoring or criminal convictions, bankruptcies and CCJs. If you aren’t honest about your past history, your policy could be cancelled or even made void, meaning any outstanding claims will not be honoured.
Other misleading information that could void your policy includes claiming you are a part-time trader when doing full-time work, false information about the quality of your vehicles or claiming you have adequate security in your premises when you don’t.
Falsifying the address of your company to get a cheaper quote or claiming to have parking when there isn’t any, is also fraudulent, and easily checked with the use of Google maps. In addition, misleadingly naming an older, more experienced motorist as the main driver when they aren’t is illegal. This is known as “fronting”, and is commonly associated with new or young drivers who are attempting to keep their Insurance premiums down.
Giving false or incorrect information may also negatively affect the cost of a premium when you are looking for a new motor trade insurance policy. There are also often penalty fees incurred because of a voided or cancelled policy.
4. Keeping Your Options Open
Getting a cheap quote may seem attractive, especially as a new business starting out, but spending some time shopping around for the best deal will make sure you are covered for everything you need at the most reasonable price.
Draw up a comparison table of all the options on offer from each insurance company that your Broker provides you with. You might find that the slightly more expensive policies will have additional cover as standard and therefore provide better protection for your Motor Trade business.
5. Reading the Small Print
All insurance policies seem to have never ending terms and conditions, but it’s worth making sure you are getting the cover you expect with no nasty surprises, including any exclusions and excess costs.
Look at the flexibility of the terms. Can you adapt your policy to meet future growth, such as a larger fleet or new premises, and are there any restrictions on location? You also need to check if you would be allowed to add new employees, such as drivers, to your motor trade insurance policy and whether there would be restrictions on driver age, convictions and previous claims.