RD

Thursday, 21 July 2011

Will my No Claims Bonus Bring Down My Motor Trade Insurance?

Whenever you apply for motor trade insurance you need to prove that you
are a low risk in order to achieve low premiums. Being a low risk applicant
can depend on a number of factors, one of which is your no claims bonus.

Whether you have had a trade policy before or whether you are applying for
the first time, your previous no claims can impact heavily on the premiums
you will be quoted. Luckily these brokerage companies do take private auto
policies into account when generating a quote for you, so you can still benefit
even if you didn’t get the no claims in the trade industry.

As mentioned, you need to be as low risk as possible to the company in order
to achieve a low premium. These companies take a variety of factors into
consideration including your no claims (private or trade), your license
information and your age.

If you have a clean driving license without any points deducted and you are
over 25 years old with no previous insurance claims, you are likely to receive
an affordable quote.

You don’t realise how much of an impact you not needing to claim from your
policy can have on future insurance quotes, but when you are running a
business you want the best cover for the lowest possible price and this is
where you realise how important all of it is.

The same applies if you decide to add multiple drivers onto your policy to test
drive customer vehicles. You need to ensure that these staff members are
over 25 years old with clean driving licenses and their own personal auto
policies have not had any claims in the past five years at least. This way,
even when you include people onto your policy, you can reduce the premium
costs dramatically.

People under 25 years old are considered a high risk by insurance
companies, as the majority of accidents on UK roads are caused by people
under 25 years old. The same applies for driving licenses; if you have
speeding tickets or previous DUI (driving under the influence) points against
your license, you are obviously a high risk to the company and they will
charge you more.

Taking all of this into account, it proves that the lower risk you are when
applying for motor trade insurance the lower your premiums will be, your no
claims bonus will be an important factor in that decision.

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