Running a motor trade business often means you need specialist motor trade insurance. This type of cover allows you to drive both your own vehicles and your customers’, with options to protect your stock, plant, machinery, diagnostic equipment, and tools in transit. It can also safeguard your business against liability claims that may arise.
At Lifestyle Insurance Brokers, we work with a wide panel of reputable UK motor trade insurers to tailor policies that meet your needs. Our goal is to deliver competitive pricing while providing industry-leading advice and customer support.
Here are the key factors that influence the cost of motor trade insurance:
Nature of Your Business Activities – What You Do Matters!
The type of work you do has a big impact on your insurance premium. At a minimum, you’ll need road risk-only or Road Risk-Only cover (RTA) to meet legal requirements. However, many traders opt for combined motor trade insurance, incorporating premises, plant, stock, tools, machinery, and liability protection.
Whether you’re a part-time car dealer, a full-time recovery operator, or a mobile valeter, you can choose from third-party-only, third-party fire and theft, or fully comprehensive motor trade insurance.
At Lifestyle Insurance Brokers, we understand that every trade is different. Whether you’re a new start-up without motor trade no-claims bonus or an established trader with full bonus and a list of vehicles on your MID, we’ll find a policy that works for you.
The Vehicles You Handle
The types of vehicles you work with can have a significant impact on your motor trade insurance premium. If your business involves handling high-value vehicles, such as luxury cars, sports or high performance, classic models, or commercial vans, insurers will view this as a higher risk. These vehicles are more expensive to repair or replace, which increases the potential cost of claims. Similarly, if you deal with specialist vehicles like recovery trucks or modified cars, this can also affect your premium due to the unique risks associated with these types of vehicles.
On the other hand, businesses that primarily handle standard vehicles may benefit from lower premiums, as the perceived risk is lower. At Lifestyle Insurance Brokers, we take the time to understand the specific types of vehicles you work with and ensure your motor trades policy is tailored to reflect your needs. This way, you’re not paying for unnecessary extras or cover that doesn’t apply to your trade.
Your Business Location
Where your business operates is another key factor that insurers consider when calculating your premium. If your premises are located in a high-crime area or a postcode with a higher risk of theft or vandalism, your insurance costs may be higher. This is because insurers assess the likelihood of claims based on the security of your location.
Operating a business within a higher rated post code area does not mean that you can’t do anything to reduce premiums. Great security will help! From CCTV, reputable alarm system installation, to doors, windows and good locking systems as well as good external security to protect vehicles in the open, will all be taken into account by a specialist underwriter.
Drivers on Your Policy
The drivers you include on your policy can have a big impact on your premium. Insurers assess the risk profile of each driver, taking into account factors such as age, driving experience, and claims history. Younger drivers, particularly those under 25, are considered higher risk due to their lack of experience and statistically higher likelihood of being involved in accidents. Including younger drivers on your policy can significantly increase your premium.
Similarly, drivers with a history of claims or motoring convictions may also raise your insurance costs. Insurers view these drivers as more likely to make a claim, which increases the perceived risk of your policy. To keep your premiums down, it’s important to be selective about who you include on your policy. Limiting high-risk drivers or opting for a named driver policy instead of an “any driver” option can help reduce costs.
Your Coverage Choices
The level of cover you choose is one of the most important factors in determining your premium. At a minimum, you’ll need third-party-only cover to meet legal requirements, but many motor traders opt for more comprehensive policies to ensure they’re fully protected. Comprehensive cover includes protection for accidental damage, fire, and theft, giving you peace of mind that your business is safeguarded against a wide range of risks.
In addition to your core policy, you may need to consider optional extras depending on the nature of your trade. For example, public liability insurance is essential if you interact with customers or the public, while employers’ liability is a legal requirement if you have staff. Other add-ons, such as business interruption cover, tool and transit cover, or cyber insurance, can provide additional protection but will increase your premium.
Why Choose Lifestyle Insurance Brokers?
At Lifestyle Insurance Brokers, we specialise in finding the right motor trade insurance for your business. Whether you’re a mobile mechanic, valeter, recovery operator, or dealership, we’ll match you with a motor trade policy that fits your needs and budget.
Call us today on 0161 641 3229 to speak with one of our experienced advisors. With policies starting from just £37.50 + IPT per month, we’ll help you protect your business with confidence.
