The majority of people who have got a regular car insurance policy will be aware of the fact that by building up a solid few years of no claims bonus you should receive a lower premium for your cover. There will be a proportion of people who work in the motor industry though that do not realise that they can also get a discount on their motor trade insurance policy as well with their no claims bonus. The reduced rates will work out just like a private policy in the majority of cases but we have given a brief outline of some of the main areas below.
For anyone who is only moving to a traders policy now, they may be able to use any no claims bonus that has been accrued on their own individual private vehicle cover. Using your personal no claims policy for trade cover should not mean that your private cover is affected in any way so it can be extremely worthwhile looking into. You will usually find that you can get a bonus of up to five years no claims – although you will need to check with the specific insurer. If you do have the maximum amount of five years then you may find that you can get a massive reduction in the overall cost of the premium with discounts of up to 75% a possibility!
When you take out a traders policy you may still get the same protection for your no claims bonus as you can for your private cover. You should take note though that if you were to end up making a claim on your cover and then decided that you wanted to chance to a different provider, the new company may not necessarily acknowledge the previous protection that you had. Deciding not to protect your no claims will mean that if you do end up making a claim with your insurer, your bonus will either be reduced by a year or two (down to 2 or 3yrs) or, even worse, it could be rescinded altogether.
Whenever you are looking to take out a motor trade insurance policy, you should look into whether or not you are eligible to receive a no claims discount. Even if you have only built up your bonus on your own personal vehicle cover you will still usually be able to get a good reduction on the price of your premium so you should look into this before diving in.