While you may think that looking for the perfect location for your premises and hiring qualified staff is the hardest part, you still need to remember that you need to look for the relevant insurance too.
Without specific insurance, like a motor trade policy, being a motor trader can be difficult. Plus, if you don’t take the time to shop around, you may find that you will be paying more for your motor trade insurance than you would like, leaving you short of money in other areas of your business too.
So, how can you reduce the cost of motor trade insurance? Let’s find out.
Consider Your Location
Did you know that more populated areas carry a substantial risk of crime? So, if you decide to set up your business in an area that is known to be associated with crime, as well as in geographically challenged areas, it is very likely that you will receive a higher premium rate from your chosen insurance provider. In some extreme cases, depending on the area, you could be denied insurance altogether, which will cause more trouble than good.
Also, if your business is located where there is more congestion and dangerous roads, you could find yourself subjected to higher claims too, which could affect your business financially. Businesses who work in the big cities, for example, could be at risk of having to pay five times more than businesses who operate in smaller areas.
To prevent this from causing an issue, you may want to consider choosing a location that is within neighbouring towns or business parks, as this can lower the level of risk that your business may be subjected to if you set it up in the middle of a city centre. Don’t forget to include any security features if your location doesn’t already possess any, as this could help to lower the risk of a claim, and can prove to be positive for your insurance premium.
Find The Best Insurance Provider
This may sound simple, but some people don’t take the time to look for the best insurance provider on the market. In most cases, they decide to purchase a plan with the first company they find, so as you may expect, they’re not taking the time to shop around for the best deals that are out there. This could be a big mistake to make. There will be the best plan out there for your budget, and if you persevere, or enlist the help of a professional and experienced insurance broker, you have an increased chance of being able to save as much money as you can on your insurance policy. Though, insurance is probably one of the most important things you need to pay for when starting your own motor trade company, you don’t want to go over a specific budget you have set for this area, as this could leave you short of money in other areas.
So, before jumping into things and picking the first insurance provider that you see, do your research. It could pay off in the long run.
Specify What You Offer
If you plan for your business to offer multiple services, such as buying and selling cars, as well as valeting vehicles, you will find that your motor trade insurance will increase because of the higher risk that it has. Though it can be disheartening to learn that you may be required to pay more money for your premium, you need to make sure that you provide the relevant information to your insurance broker, as it could cause more harm than good to withhold these types of details. Due to the risks that could present themselves to you and your business, it may be in your best interest to focus on one service than specialise in several different areas, for the first year at least.
If you want to reduce the amount of risk that your business could experience when it comes to your insurance premium, you may want to focus on one particular service as this will save a lot of money on your insurance, thus allowing you to improve your finances in other areas of your business. Once you have found your feet, you can then branch your business out and provide more services.
Whilst finding ways to reduce the cost of your motor trade insurance can seem like a lot of hard work, it doesn’t have to be that way, provided that you follow all the necessary steps that can help you to be more efficient when it comes to your finances. Do this, and you will find the cheapest and highest quality premium for your needs.