If you are under 25, it’s likely you will struggle to be accepted onto a motor trade insurance policy. Some brokers will stipulate an age of over 25, while others may limit the type of cover you can obtain.
At Tradex Insurance Services we always try to accommodate young driver insurance needs, assessing any potential risks on an individual basis according to your particular occupation within the motor trade. To help you get the best start in your business, here are some tips that may help you lessen your risk exposure and possibly reduce your premium.
Limit Your Motor Trade Insurance Options
If you are looking to keep your premium down, you may find limiting your insurance options the cheaper choice. There are three types of under 25s insurance: third-party, third-party fire and theft and fully comprehensive. You can often save a bit of money by going for the first two options, however it’s critical to understand this would not cover the value of the vehicle, should an accident happen. In addition, you may need specific optional extras, such as liability insurance, so it’s always worth shopping around for the best deal for your specific needs.
Increase Your Excess
If you are confident in your driving and have driven safely for a while, increasing the excess you’d pay in the event of a claim will help to cut the cost of your motor trade insurance policy. This would mean paying more if you were to make a claim, but it may help to reduce your annual premium costs.
By paying annually, you may also be able to negotiate a lower price with many insurance brokers. It will mean a bigger initial outlay but could help you get a better deal.
Be More Appealing to Your Broker
Whilst it will take a while to build up your no claims bonus and experience, there are other ways that can help you get a good deal. Think about a smaller engine (1-litre, 65hp are the cheapest to insure). For some help on which are the best cars for a beginner driver, look at our blog The Cheapest Cars to Insure for the Under 25s. Steer clear of any performance vehicles which will make your insurance costs skyrocket.
Investigate fitting a Thatcham approved alarm or immobiliser if not already installed. Having a black box fitted or using other telematics is another way to prove you are a safe driver.
Modifications to Your Vehicle
Aside from security modifications that can lower your premium, other alterations can cost you dear when it comes to insurance. The more changes you make, the greater the cost of your policy. A modification is classed as anything that doesn’t come as a standard factory fitting. Find out more about vehicle modifications with our blog on Car Modifications – What You Need to Tell Your Insurer and Van Modifications – Keeping You Insured.
Building Your No Claims
Motor traders under the age of 25 are often required to have at least two years driving experience and a year’s no claims bonus (NCB). If you already have knowledge of the motor trade this will help. To support new drivers, many Insurers offer a bonus booster, in which a six-month policy can help you to accrue a year’s no claims bonus which can then be used on a full-term policy.
Get Multiple Quotes
Insurance companies vary widely in the coverage they are prepared to give drivers under the age of 25. If you get several quotes you can compare the cover on offer. Some may only give third party insurance, while others may offer motor trade cover for personal liability and premises cover.
Starting out in the motor trade can be an expensive time. If you are finding the insurance premiums daunting, particularly if you need a larger vehicle such as a van, it may be worthwhile partnering with a more experienced driver initially. Whatever your circumstances, Tradex has worked with many younger motor traders and can help support you in getting the cover you need.