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Is Motor Trade Insurance Expensive?

The price of your Motor Trade insurance policy can vary depending on a number of factors, and more add ons can make it more expensive.

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When setting up a motor trade business, one of the first questions you might ask might be ‘Is Motor Trade insurance expensive?’ However, there isn’t a simple ‘yes’ or ‘no’ answer to that question.

There are a number of factors that make up a Traders Car insurance policy, and they can often include additional insurance products that could increase the price of the policy such as Employers’ Liability or cover for your stock or tools, but some of these additional products are vital components of some Motor Trade insurance policies.

cheap motor trade insurance in the uk

Looking for Cheap Motor Trade Insurance?

If you’re asking the question: ‘Is Motor Trade insurance expensive?’ there’s a good chance you’re looking for a cheap Motor Trade insurance policy. A cheap policy isn’t always the way forward and if it doesn’t cover everything your motor trade business needs it to cover, then you could find yourself out of pocket in the future if you need to make a claim. 

Your Motor Trade insurance policy shouldn’t just be seen as a legal requirement, it should be viewed as an essential part of your business plan, and seen as a way to keep your business secure, should anything happen.

Road Risk Motor Trade Insurance

There are ways you can avoid an expensive Motor Trade insurance policy, but that does mean you will only get the basic Motor Trade insurance package, which would be a Road Risk insurance policy - though this could be an ideal type of Motor trade insurance for any trader who is just starting out, and doesn’t have a lot of cash to play with.

The most inexpensive Motor Traders insurance policy that you could take out would be a Road Risk Third Party Only insurance policy, and this would satisfy the legal requirement to drive on UK roads. This minimal level of cover isn’t always practical. For example, if you were a car dealer and only had a Road Risk policy, customers would not be able to test drive the cars you stock unless they had their own Comprehensive Car insurance policy that allowed them to do so. Without this, your customers would not be covered to test drive your vehicles, and you might lose out on a sale as a result.

why is motor trade insurance so expensive

What Makes Motor Trade Insurance Expensive?

Many of the things that increase the price of a regular Car insurance policy can also increase the price of a Motor Trade policy. These can be things such as the location of your motor trade business, or whether you work from home or from dedicated premises. It can also include where the cars/vehicles associated with the Motor Trade policy are kept, whether that’s the cars added onto your policy for use as part of your trade car business, or the stock of vehicles you have if you are a car dealer.

Of course, adding additional insurance products such as Stock of Vehicles cover, and liability insurance products such as Public, Product or Employers’ Liability can often also increase the price, however for a lot of motor traders they are essential pieces of cover that they cannot risk doing without.

Motor Trade Insurance Comparison

One of the commonly held beliefs of insurance is that the way to avoid an expensive insurance policy is by using online comparison websites, and for some general insurance products this might be true. However, if you’re looking to avoid an expensive Motor Trade insurance policy then going through a Motor Trade insurance comparison site might not be the best way to go about it. Firstly, there are very few sites that can offer you a full online Motor Trade insurance quote, and secondly, due to the complex and varied nature of the cover available, if you haven’t spoken to a specialist broker then you run the risk of not having the right cover for your business, which could end up costing you more in the long run if you needed to make a claim. 

Motor Trade Insurance Broker

To get access to exclusive Motor Trade insurance rates that aren’t available through Motor Trade insurance comparison sites or sometimes even the insurer themselves, then you need to speak to an insurance broker such as Think Insurance. If you would like to see how we can help you with your Motor Trade insurance policy, click ‘Get a Quote’ below or call 0800 221 8077.