Why Insurance Policies Should Be Tailored to Your Type of Motor Trade Business
Motor trade is a diverse industry and refers to anyone who buys, sells, repairs or maintains vehicles. Motor trade businesses also vary in size and can handle any type of vehicle from vans and motorbikes to vintage cars and commercial vehicles.
While the most common types of motor trade businesses are new or used car dealerships, car valeting firms and car repair services can also get motor trade cover. The company’s yearly turnover could be five cars or five hundred cars so motor trade businesses require different policies according to their size and function.
The beauty of motor trade insurance is that the policies are as flexible as the industry is broad. Each motor trade insurance policy can be tailored to the policy holder’s specific business needs and protect the company against third party damage, fire, theft and accusations of poor standards of work or negligence.
Motor Trade Insurance for Car Dealers
Car dealerships regularly buy and sell vehicles and many allow buyers to give the vehicle a test drive before they buy it.
Since it would be impossible to insure each individual driver that needs to test drive a vehicle, motor traders are able to choose a policy that covers anybody who they give permission to drive their vehicles rather than just one named driver.
Motor Trader Insurance for Garages
Local garages are regularly in possession of different cars for maintenance and repairs and therefore they must also be covered by motor trade insurance. Vehicles will only temporarily be in their possession but mechanics or valets may occasionally need to drive them in order to move or reposition them.
It would be impractical to insure each vehicle individually so motor trader insurance providers can create a bespoke policy where all garage employees may drive any vehicle that is part of their work.
Important Points for All Motor Traders
It is important to remember that the more flexible the policy, the higher the premiums will be. However, discussing your motor trade insurance needs with an experienced motor trade insurance broker like Flint Insurance can secure the right level of cover for your business and ensure you pay the right price for the protection you need.
Motor trade insurance is just like any other; if you are seen to be more low risk and therefore less likely to make a claim, an insurer is more likely to be able to offer you a lower deal. Therefore, anything you can do in order to lower your insurance payments is preferable, and will make you more of an appealing asset to any insurance company.
You can reduce your premium by limiting the number of people and hours you drive vehicles to move them around, as the driving history of those in charge of driving the vehicles may also increase your motor trade insurance plus having a large number of named drivers on the policy. So strip it right back to someone who has a good record and also only those who really need to be on the policy.
Lock it down
The area of your business location is very likely to be a factor in pushing up your motor trade insurance policy – however, no matter where you are based, security is always an important aspect of insurance. So either keep your vehicles in a garage or off the street, and take precautions to put security measures in place to show the insurer that you are locked down and also deter any potential threats through your increased security.
Keep a clean slate
Your driving record, but also your employees’ will also make a huge difference to what you are being charged, so it goes without saying that trying to keep a good account of yourself by driving safely and responsibly is important for your general safety on the roads. But encouraging your employees to do the same and making this something you check when employing someone within your business should be a priority too – as it might reduce your premium.
Set the right indemnity level
Be careful not to over or under insure – as either could prove costly for you in the long run. You don’t want to be just giving away money on your motor trade insurance policy to your insurer, but at the same time you don’t want to find out at a stressful time that you weren’t covered significantly either. Therefore think carefully before setting your indemnity level or…
Seek the advice of your broker
That’s what they’re there for, so make sure to take advantage of their extensive knowledge within this very specialised field and ask them how you can save money on your policy or if they have any insight into any obvious risks your business might pose to an insurer. Asking the right questions from the outset means that you are less likely to find out later on that you could have been covered for various things.
British car sales continue to go against the EU grain
Like any major business sector, motor trade has its booms and slumps – but there is something peculiar (good peculiar) about the UK market at this moment in time.
With an 11.5% sales increase in January, Britain’s motor trade industry looks like its continuing its 2012 momentum throughout Q1 of 2013. However, European sales continue to fall – the rest of the EU took a year-on-year decline of almost 10% in January.
Even Germany suffered a loss of 8.6%. Our home-grown dealerships are already nipping at the heels of their German counterparts – the UK now sits in close-second to Deutschland as the largest auto market in Europe.
So, could the looming introduction of the 13 plate be the impetus behind our island’s success?
Unlucky for Some
The new plates won’t come into play until March, so it has been reported some people are ordering their cars early, to superstitiously avoid the number 13 on their reg.
Still, UK motor trade has been growing over the last 12 months anyway and the realists are seeing the January increase in sales as a natural result of a positive market.
The total figure for car sales in Britain amounted to more than 2 million in 2012. Considering the 2011 total of 1.9 million, the increase of over 5% is significant and it already looks like 2013 will be good year for UK dealers (figures sourced from the Society of Manufacturers and Motor Traders).
It was suggested that an increase in used-car prices may have contributed to more people considering new car incentives. The new Ford Fiesta was the top selling car in the UK and considering you can grab one for under £10k, it comes as no surprise.
Advice for Car Dealers
Every new car forecourt in the country can ride on this momentum and as for the second-hand dealers, it’s a chance to adapt; the auto trade sector is currently enjoying a boom and it is up to the dealers themselves to capitalise on it (superstition isn’t really going to have that much of an impact).
Brokers come into play at this juncture – the experienced ones who have been around for the slumps too. All dealers need motor trade insurance but understandably we Brits need to see value for money (like the Fiesta for example).
So, the brokers go ahead and create a brand new protection package for 2013, designed around the individual applicant’s trading business. Then it’s time to source the best possible motor traders insurance quote. With the protection side of your business taken care of by a professional, not only can you save money, you can completely turn their focus to making the most of a seemingly positive 2013.