It is a well known fact amongst private car owners that a very good way of getting a reduced price for your premium is by building up a good few years worth of no claims bonus. However, what people who are working within the motor trade industry may not realise, is that they may also be eligible for a discount on their traders insurance policies via the same means. You will generally find that the bonus will work in the same way for both trade and private cover – you can find some general information below.
For anyone that is just starting out in the motor trade and is taking out their first trade policy, you should find that you can use any bonus that you have accrued on your personal vehicle cover to get a reduction. Your discount may be able to be used for trading purposes without it having any affect on your private cover.
When it comes to the levels of discount that you will be able to get, it can be different depending on which insurer you are getting a quote from. In the majority of cases you should find that you can get a maximum of five years bonus and the actual discount received will depend on the number of years. You may well find that if you have got a full five years bonus then you are entitled to a discount of up to 60% – clearly worth looking into!
As with a no claims bonus on a private vehicle, you may be able to take out bonus protection. The difference with this though is that if you do end up having to make a claim on your policy and you then decide to swap your insurer, the new company might not necessarily give any credit to the fact you had protected your bonus. Without any protection you will find that if you make a claim your bonus will get moved backwards by two years or more – or alternatively it may be taken down to zero!
Whether you have managed to build up a bonus on your own private vehicle or if it is on your trade vehicle, you should find that you can get a good discount on your motor traders insurance policy. The fact that you could potentially get up to half of the overall cost of the policy discounted should be enough to make people drive that little bit more carefully to make sure they remain claim free.
Think Insurance can provide you with a cheap insurance quote today, if you are looking for motor trade, home, taxi or commercial insurance then get in touch with one of our team members.