Motor Trade Insurance premiums have recently risen – on average by 15-20% in the last 3 months – and leading underwriters are attributing these rises to an increase in motor insurance claims payouts. Where private car insurance premiums rise motor trade tends to follow suit. It wasn’t too long before they followed private car drivers in paying more. But while the average Jo has to put up with his annual increase motor traders can still save money when compared to private policies. This is because trade policies can include multiple vehicles for the same price.
Motor trade has traditionally been seen as a more cost effective way to ensure multiple vehicles. There has recently been a huge increase in part time motor traders who have dipped their toes into buying and selling second hand vehicles. Their experience is generally favourable and most have said they would not want to go back to a private insurance policy.
Effectively if a part time motor trader is selling between 6 and ten vehicles a year the profit they could potentially make could at the very least cover the cost of next year’s motor trade premium!