Motor trade insurance is a vast term; it denotes various policies that are targeted at the motor industry. It comes under the category of business insurance policies where a customer's vehicle is secured when under your control. The thing is, since it covers multiple aspects, finding one that is cost effective and purposeful can be a daunting task to say the least.
The three most important words are 'care, custody and control'. The more fully an insurance policy covers these three things without going overboard with the prices, the more it is beneficial for you. Here are a few tips that can guide your selection:
Auto renewal is a trap:
Whenever signing up for a policy, bear in mind that auto renewal of insurance after it has expired means the same outdated policy when the market will have better deals to offer. It is a major way that insurance companies feed off of their clients who are too lazy to go and scan the market for better options. It's pretty simple: Ever year, better deals come into the market, and when you stick to the same old one, you're paying more for something that has evolved to be cheaper.
Calculate your risks:
Each time you will go to meet a broker, they will come up with points and convincing statements about the various risk factors that are involved in your particular business. It's their job to do so, and it is your duty to do your homework as you go and to have a clear picture of what you require and do not require. They give you studies and researches about the liabilities that might come your way, and as you negotiate, the last thing you need is to be swayed at the heat of the moment. For that, you must go well prepared. Calculate your risks to avoid additional add-ons that they might try to fit in your policy.
These are loopholes, created to extract the maximum benefits from an insurance company. If you need an insurance policy for a standard vehicle, the one that covers all vehicles will charge more. As it will include specialist vehicles whose care, custody and control is higher. Similarly, try to specify the number of your vehicles that are placed on the policy. Try to point out the damages that your vehicles are more prone to. As a rule of thumb, whenever you can, avoid generalisations and you'll be cutting a sizable portion of you'll be avoiding unnecessary charges.
Recruit keeping the cost in mind:
What is meant here is that as an employer, certain things can be put into motion which will contribute to a better insurance policy. It is typical of insurers to exclude drivers under the age of 25 as they are more prone to accidents or they will charge extra for them (called extra premiums). Similarly, the ones that have a criminal history will also call for a more expensive coverage that can be hard in your pocket. It starts from the grass root level, if you want a plan that is cheap, run a system that is efficient enough to withstand it.
Run a system that is cost effective:
Can you place certain rules which will compel the drivers to drive safely? Yes. When the terms of employment states that the drivers are responsible for their excesses, the least they will do is drive cautiously and imply the phrase 'prevention is better than cure'. It is a simple method of incentivising safe driving. When the probability of damage is reduced, one is more confident on the cheaper motor trade insurance. The calculated risk is decreased, and as stated earlier, many add-ons can be left out. Result? Cost effective insurance.
Keep this clear, the insurance world thrives on loopholes, and they prey on the mistakes that you make. Modifying an insured vehicle is one of them. The claim is decreased or lifted altogether if the condition of the car that is insured is altered in any way, they don't care if it makes the car safer. So usually you end up paying more for something whose value is decreased. Again, the tactic of prevention is better than cure should be applied for a more worthwhile deal, avoid modifying your vehicle wherever you can.
Paying premiums annually:
This is a more general tip. Everyone has to come to the decision of their payment plan. There are options of monthly, quarterly, annually, etc. Almost always the annual policy costs are less than the monthly in total as you give a lump sum. If it is difficult for you to separate that kind of money once a year, save some monthly to deposit them at the end of the year. Studies have shown that the annual plans can be as much as 80% more cost effective than the monthly ones depending on your demands.
Don't compromise on the essentials:
There are certain things which can be categorised as unnecessary when looking for an insurance plan while others are an absolute requirement. If you end up being irresponsible regarding selecting the must-haves and the nonessentials, the price to be paid will come out of your pocket which, in the end, is a loss greater than everything we've talked about. Jot down the things that you consider indispensable and make sure all of them are covered.
The crux of all of this point is that to cut down on costs without losing the quality of what you're getting; you need to have a firm grip on what you want and why do you want it. The employees, the vehicles, the company you're getting insured from, the deals in the market that are available, all of these contribute to making the motor trade insurance you're opting for, the best you can get.