Tips for Comparing Motor Traders Insurance

It can be complicated to look for motor traders insurance, so it’s vital to consider some vital factors when comparing quotes so the whole process becomes easier.

By knowing which factors make up a good policy for your company, and understanding the qualities of a legit motor traders insurance firm, you’ll be more than ready to find a good deal and weed out bad quotes.

Below are some of the important areas to consider while comparing the best traders insurance policies.

Insurer claims service

While insurers are judged by their claims service, the problem is that you’ll find out the quality of the service only after you’ve suffered a loss. Be sure to find out the insurer’s name (not the broker’s) and research a bit online. It’s possible that you’ll soon know how great (or poor) the insurance company’s service is.

Warranties/conditions

Carefully review each quote and note any relevant conditions or warranties. These are stipulations you’ll need to meet or follow before you claim is validated. It’s important that you understand the specific terms and whether you’ll be able to comply with them, otherwise you might find that the cover you’ve bought is effectively useless.

Insurer security

Many insurers are rated by a credit rating agency. These ratings will give you an idea of the financial position of the insurance company, and hence, their capacity to pay claims. A number of insurers choose to not get a rating or remain “unrated”. While this doesn’t necessarily indicate that they’re unstable, it provides less certainty so it would be wise to investigate further on why they have no security rating.

Indemnity levels or sums insurance

Many road risk policies are based on indemnity levels. This means the maximum indemnity that’ll be paid by the insurer in case of a claim. Make sure to compare your specific requirements with this and ensure that the quotations match.

Vehicles and restrictions

Some motor traders’ policies will also involve restrictions on the kind of vehicles covered. For instance, policies can exclude commercial vehicles, high performance cars, or motor cycles from cover, either completely, or for young or new drivers under 25. Take note of each cover restriction and you should get a clearer comparison from different insurance companies.

Similarly, if you trade courtesy vehicles or plates, or own a recovery motor vehicle, ensure that the policy completely covers such vehicles for the designated drivers and take a look at the applicable excess.

Cover sections

Usually, trader insurance covers have sections for all areas of cover, including employers’ liability, public liability, tools and equipment, stock vehicles etc. List the policies offered by each insurance company under all areas to:

Make sure you have adequate sum insured or cover under each section

Review specific provisions as some insurance companies usually provide increased limits

Policy excess

An excess refers to the first portion of any claim you’ll be responsible for. The most important thing is to understand the different levels of excess which apply to sections of cover. For instance, loss/theft of tools and accident can all carry different excess levels.

Road risks/premises

If you run your business from premises, be sure to have a separate policy for this factor. A road risks cover won’t cover vehicles at premises and you wouldn’t want to find out that your customer or stock vehicles aren’t adequately covered.

Drivers and flexibility

There are several options available, including approved and named drivers, as well as any driver covers for bigger trade risks. Take your time to consider who should drive and the basis for their driving. If extra drivers can be limited to only trade use, then this can save your premiums, but is this practical in reality? Are your options identical across every insurer you’re comparing?

Different motor trade insurance companies have different underwriting policies, therefore, it may be wise to ask questions about your growth plans as well as their opinion on your business development. If you’re thinking of having an apprentice, for example, make sure that the cover can accommodate drivers under 25.

Price/premium

You might have expected price to be the number one consideration, but you really must ensure that all the other areas are okay before you compare levels of premium. Do not forget to consider any fees or interest charges if you intend to pay your insurance premiums in installments.