Monthly Archives: May 2010

Adding Your Spouse to Your Motor Trade Insurance Policy

Did you know you can add your significant other onto your Motor Trade Insurance policy? Did you also know that they can be added on for relatively low cost?

You can add your spouse onto your policy with most good insurance companies nowadays with very little fuss – and it can cost as little as 5% of your total premium! More good news is that you don’t even have to be married – most companies will now consider a common law wife/husband in the same way. So, as long as you co-habit you can add them on!

Let me give you an example of where you can save:

EG: You move into a house with your girlfriend/wife. You are paying insurance on two cars on two separate policies (approximately £450 on each one) as you both need to commute to work. You are a self employed motor trader who valets cars & vans. One of the cars is registered to you and one to your girlfriend/wife.

You take out a trade policy for £520(this is an estimate, generally a trade policy can be as cheap, if not cheaper than a private car policy anyway!). Why not add her on as well? You could then cancel her insurance policy and put her car onto yours. This will save you one set of insurance premiums. She will even be able to commute to work covered by your insurance. Your partner would not even lose her no claims bonus as you can cancel a policy and keep the important discount for up to 2 years without using it.

So, as long as you are a motor trader you can benefit from the fact that you can add multiple vehicles onto your policy for free. (Please be aware that the benefits stated in this article can be attributed to a spouse, whether common law or not, only. Other family members/friends/employees may be subject to different terms and conditions)

The ability to add your partner on to your Motor Trade Insurance policy is an often over looked benefit of working in the trade. Call us today and see how much you can save!

Think Insurance – Quality, Service and Price

Do I Need a Traders Insurance Policy?

To someone in the industry one of the first questions you may consider is – do I need a Motor Trade Insurance policy? Here are some things you may find helpful :

Regular Car Insurance policy – you may be able to change your vehicle on your car policy but it will probably cost you each time. At an estimated £20 a go this can take the price of your annual insurance to unreasonable levels. Also, be aware that if your insurer finds out that you are in the trade and you haven’t told them for a re-rating of your policy it may invalidate your cover!

Driving Other Cars Extension – this is a useful addition to your private car policy that allows you to drive someone’s car at a Third Party Only level (perfect you may think as a cheap alternative to a Trade Policy). This may be okay if you are stopped by the police but in the event of an accident your insurance could again be invalidated. Why? Because Driving Other Cars cover does not apply to anyone in the motor industry! I often speak to people who use this cover to carry out their business and I can only advise to not – if you do you’re paying for insurance that will never pay out!

Price – motor trade insurance can actually work out cheaper than what you pay for private insurance. With our policies there is no limit to your amount of personal vehicles (so instead of separate car policies you can incorporate all your vehicles on the traders policy – for free!). The minimum premiums through our company can be very low – £350 for Third Party Only; £395 for Third Party Fire & Theft; £450 for Comprehensive!

Necessity – are you getting to the point where not having a policy is restricting your earning potential? Have you ever needed to drive someone else’s car for a repair or a test drive and not been able to? You could take a chance and drive without the right insurance but be prepared for a fine and points, or a ban, if you’re caught. Also, remember that some clients will ask to see your insurance policy before they allow you to drive their vehicle.

Freedom – a trade policy can allow you to drive a multitude of different vehicles under one policy. Some examples could include – vans up to 7.5 Tonne, imports, sports & performance vehicles, mpv’s up to 8 seats, and kit or modified cars. Most policies also allow you and your wife/common law spouse to be covered for social and/or trade use for little extra cost.

So, the question should be – can you afford to not have a Motor Trade Insurance policy?

Think Insurance – Quality, Service and Price

Top Tips for Selling

As a Motor Trade Insurance Intermediary we like to think we can help in your search of sales. Below are some tips we hope may help.

Pre-Sale Preparation

Take time to make sure that everything is in place before the potential buyer turns up. Ask the purchaser before he arrives to bring his licence and proof of insurance (if not covered on your policy) so he can take a test drive. Ask someone to be with you when they turn up for peace of mind and added safety. Make sure that the vehicle has been cleaned, inside and out to a high standard. Make sure that any problems with the vehicle have been sorted or repaired. There’s nothing more embarrassing than a buyer pointing out obvious problems you’ve missed!

Buyer Arrives

Allow the buyer to have a good look around your vehicle. Do not interfere too much or the buyer may think you have something to hide. Let them carry out a check – whether by themselves, a friend, or a hired professional – this all helps to build their confidence for the sale. Answer any questions they might have honestly and professionally. Remain pleasant and polite even if you think they’re not interested – some people are just born miserable – it doesn’t mean they won’t buy your car!

Test Drive

Check they’re covered by their own or your insurance before you let them drive. Always accompany them on the test drive and take a friend if you feel it necessary. Always keep the keys on you when getting out of the car or swapping seats. Potential purchasers may drive your vehicle harder than you would like and this happens quite often – don’t be afraid to ask them to slow down if they are putting your vehicle, or the passengers, at risk.

The Deal

Be prepared to haggle! This is usual so don’t take the hump when confronted with it. Have a minimum figure in your mind and remind yourself of it during the negotiations. Don’t be rude if you decline an offer – leave the door open for the buyer to make an increased offer. Don’t be too rigid on your price – is it worth losing a sale for £25 if you have to readvertise the car? If you reach a stalemate don’t be afraid to throw in a sweetener – this could be a tank of fuel, a warranty or tax.

Remember – preparation is the key – preparation of the vehicle; preparation of your advert; and preparation of your sales technique. Finally – Good Luck!

Think Motor Trade Insurance – Think Insurance

Is Your Motor Trade Insurance Broker Up to Scratch?

There will always be people who are only influenced by price, and that’s absolutely fine, but for others other things come into play when choosing their Motor Trade Insurance policy. Here are some thoughts about broker, or insurance company competence that may help.

Call Centres

A justifiable subject of hate throughout the insurance landscape. Do you sit on hold for ages only to speak to an unhappy assistant? Do you get to speak to someone who knows their stuff, or do you get to speak to the newly trained office junior? A good company fields comprehensively trained staff who are happy to help. Remember, a saving of a few pounds may seem good when you take the policy out but please make sure that you won’t regret your decision whilst later listening to “Greensleeves” on hold!

Just a number?

How big is the company you’re with? Do they value your business or are you just a number on a printout? Some large companies have excellent customer service, but they are generally the exception. A smaller business will value your business a lot more as the simple truth is they need your custom to survive! Also, a smaller company will generally be more helpful with any problems that may arise during your 12mths.

Charges

Are you charged for things that should be free? Does your company charge you for MID adjustments or for duplicate documents? There can be many hidden charges with some companies, from excessive instalment charges to high Legal Protection policies. Ask what fees might be levied during the year before you buy your policy.

Insurance company choice

Which insurance companies your broker uses can tell you a lot about the company. Do they use quality ones who help you in the event of a claim, or do they use 2nd tier ones who are only after your money? An excellent insurance company is worth a couple of quid if it gives you peace of mind and security. So don’t be afraid to ask your broker for their advice on which one suits you best!

I hope that this brief summary helps you in your insurance choices. Please feel free to call one of our expert advisers for one to one advice on your Motor Trade Insurance policy selection.

Think Insurance – Quality, Service & Price.

What Level of Indemnity Do I Need on My Traders Insurance?

When it comes to Motor Trade Insurance we’re often asked what level of cover, or indemnity as it’s referred to, do I need? Well that depends on what you do in the trade. A mechanic, for instance, may need a totally different level of cover from a valeter. We’re going to try and help you decide.

First off, if you’ve only got a cheap run around yourself it may be better to split your indemnity. i.e A car jockey (with a £3.5k Mondeo) could have £5k of cover on his own vehicles and £25k for customers. This works out a lot cheaper than just having £25k of cover for both his own and customer’s vehicles.

Then it may depend, lets say if you’re a salesman, on what type of cars you specialise in. Do you need £20k worth of cover if you generally sell 10yr old Fiestas? Probably not, and remember if you start out with a low indemnity you can always increase it later on in the year if you need to.

On the other hand, a Ferrari valeter would probably want a very high level of indemnity. You may find that some customers require proof of suitable comprehensive cover before they allow you to take their pride and joy. Specialist policies can extend road risks cover to £100k and over in certain circumstances. These policies, though, can be a little bit more expensive than the average because of their nature.

Some may just need Third Party Only. A motor trader who specialises in breaking cars and salvage vehicles might not need anything more extensive. Their only real risk would be for the vehicle they were driving as the vehicles they collect or dismantle might not be worth much and would be on the back of their truck – also for this type of motor trade business a lot of trade insurers will only give Third Party Only.

Purchasing a level of indemnity is a calculated risk on your behalf. Unlike a private car policy the responsibility for how much cover you want rests on your shoulders. An example – you’re a mechanic and you drive people’s cars. One day you crash a customer’s vehicle (your fault) and do £8k worth of damage, but you’ve only got £5k of cover. The insurance will only pay out a maximum of £5k so what about the rest? Who pays the £3k leftover? That’s right, you!

Remember, a good broker can help and advise you on what levels of Motor Trade Insurance you need. They should be able to find you a policy that fits your needs, rather than make you fit the policy. If in doubt always seek professional advice.

Think Insurance – Quality, Service and Price