Reducing Your Motor Traders Insurance Costs
Motor trade insurance is usually the biggest expense that people in the motor trade business incur
. There are many ways of reducing the premium that you pay to the insurance companies. Before you learn to save on the insurance policy you need to understand the various types of insurance policies available in the market. Road risk insurance is the basic motor trade insurance policy that has to be taken by all vehicle owners using public roads.
Taking a road risk insurance policy is a legal requirement that all motor trade business owners have to take. Since road risk insurance is a basic insurance policy it is preferred by business owners who work from home and don't have their own property.
A combined insurance policy is taken to safeguard the business from various risks. This insurance policy provides protection against various risks and is suited for motor trade businesses that have their own property. Combined insurance policies will also protect the interest of people who work for the business. Some of the risks that are covered in a combined insurance policy include cover for damage to the building, contents, material, stock and all other items that are used in the business. Combined insurance policies will also provide employee and public liability cover.
Once you understand the benefit of the covers offered by the insurance company, you have to learn to reduce your risk. You can reduce the insurance cost by looking at the covers offered by the current policy and choosing a coverage that is required by your business. Some motor trade business owners take insurance cover for risks that their business may not be subjected to. For example if you have a motor trade business in an area that is not prone to earthquakes, then it does not make sense to take earthquake insurance cover. You can discuss with your broker or your agent, and find out the insurance covers that you should take to protect your business.
Another way of reducing the insurance premium you pay is to ask to your existing insurance provider to reduce the insurance premium. Most insurance providers will renew the insurance policy without making an effort to get you the best deal. If you have received a renewal notice and are not happy with the terms of the offer, you can ask your broker or the agent to search for a better option.
Another easy way of reducing your insurance cost is to change the insurance company that you are dealing with. Most people prefer staying loyal to their existing insurance provider and are hesitant to change the insurance provider, even if it means paying higher premiums. So talk to your broker or agent who will help you in finding an insurance provider who charges you lower premium.
Another benefit of approaching an insurance broker is that some brokers have specialist policies that are usually not available when you approach the insurance company directly. There are many other ways that can help you reduce your insurance premium, so it is important that you discuss your requirements with your broker or agent.
by: Neil Anderson
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