Cheap Motor Trade Insurance – Is It Worth the Risk?

When considering any type of insurance, it is not uncommon for businesses to want to keep the costs of their policy as low as possible. However, choosing the cheapest motor trade insurance policy can carry certain risks which are often better to be avoided.

Like any business, a motor trade company is going to make it their goal to save money on the little things to ensure they make the most of their yearly profits. Cheap motor trade insurance can help achieve this goal, but if purchased from an illegitimate source, the consequences can out way the benefits and often, businesses find themselves paying out money for insurance protection that is never actually provided. It is therefore important to take care when choosing your policy provider.

The internet is a great tool to use when searching for the best motor trade insurance, but it is important to note that not all sources on the web can be trustworthy. Facebook and Gumtree for example, often advertise cheap insurance by stating their ‘low insurance prices will beat any other provider.’ Unfortunately, these claims are often false. Such adverts will trick you in to thinking they are reputable by displaying images or logos of other reputable insurance providers. The sad truth is, many of these websites are not legitimate and you run the risk of being scammed out of your hard-earned cash. You could end up paying for an insurance policy, but never receive any cover or protection in return!

If you have fallen into this trap, you might not realise you are without cover until its too late. Imagine if yourself or your employees were victim of an accident in the workplace. You make a claim, only to realise that the insurance policy you purchased was fraudulent. You would then have no choice but to cover the associated costs from your own pocket which could have a huge negative impact on your businesses finances as well as reputation.

So, what should you do to ensure you are buying from a reputable source? Before purchasing your insurance, you should ensure you check the websites credentials on the Financial Services Register. This online tool will help you discover if the company is in fact who they claim to be.

It is also important to be internet savvy and shop around before you make any quick decisions. Spotting an untrustworthy broker shouldn’t be too difficult as they often provide inexperienced services. A trustworthy broker will work with you to discuss the details of your business and your requested insurance needs. They will then contact several established and trusted insurance companies, which will not only provide the cheapest deals but will provide deals that have maximum cover. You will then be given a shortlist of deals, and the ability to choose which fits your requirements.

Friends and family are another reliable resource when it comes to choosing your motor trade policy. Ask for their recommendations and opinions on who you should avoid. The chances are, if they received a bad service, you are more likely to receive bad service too. You can also search the internet for reviews on insurance companies, so it might be a good idea to check out any reviews online before you make any rash decisions.

Other ways you can reduce the costs of your motor trade insurance include the following:

Only pay for the cover you need

It is a good idea to consider in detail what your business requires regarding insurance cover. Making a list of the risks associated to your employees, customers or equipment in the workplace, will help you identify what you do and don’t need in terms of protection. This will ensure you only pay for the cover you need, and costs will be reduced.

Spread the cost of Payments

For some businesses where cash flow is a problem, particularly for smaller businesses that have just started out, or those who are self-employed, paying one large lump sum to cover the costs for an insurance policy can be a scary thought. Most insurance providers will give you the option to spread your insurance payments over 12 months, meaning you will not need to pay a large up-front sum. It is important to consider that in doing this, the overall cost might be more expensive, however, it will help you balance your businesses finances and this could have greater benefits in the long run.

Employ Experienced Drivers

You should consider only employing experienced drivers with a clean driving license and has made no claims. Not only is this the safest option for all involved, most insurance providers will charge an extra premium for drivers that have less experience or a poor claims history.

Other points to consider include ensuring your place of work is secured well at night and opting for a higher voluntary excess. Both of which will cut the costs of your motor trade insurance policy.

It is always within your interest to secure the cheapest possible deals for your business to reap the rewards from your profits, however, looking for a ‘too good to be true’ cheap policy can often lead to an unreliable source and inevitably, this could be putting yourself, your staff and your business at risk. If you’d like a solid place to compare cheap motor trade insurance quotes give a try.

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