Motor Insurance Guide Part Four - Location Vs Premium

In you personal life, many of your biggest decisions in life start right from the moment of where you live. Once you have your “base” everything is then mapped out from there, from traveling distance to work, local schools, whether it Is a good area, is your family nearby so they can babysit etc. If you live in a nice leafy suburb you can expect to pay insurance premiums that are lower than compared to an area with a higher crime rate and a larger population. The question is why not take the same approach to your motor trade premises?

With your motor trade business, location is key. Is it in an area with a lot of passing trade? Is there enough space on your premises for expansion, will it be an area, which has a lot of break-ins and history of criminal damage? These are all considerations that a motor trade insurance company will look at when assessing your annual insurance premiums.

You need to be very mindful of the area around you. For instance if you have premises a stones throw away from the local river or canal, then you will find it hard to get your stock insured for water and flood damage. You have to be very mindful of your immediate surroundings and the effect this will have on your insurance premiums. This can be from anything to areas with a high risk of subsidence, like many in the south-east of England to historical crime rate data and even local authority regeneration initiatives in your chosen area.

Don’t Try To Outsmart Your Insurance Company

Some motor trade businesses in the past have been known to claim that their motor trade business operates in a completely different area as to where their vehicles are stored. This is in an attempt to significantly reduce insurance costs. This can be a tempting strategy as a business owner to keep motor trade insurance costs down.

Insurers are aware that this has and does go on. Even though this can be tempting, imagine if you are put in a position whereby you need to make a claim on your insurance. You will find yourself in an extremely difficult position when it comes to claiming if you have a compound of stock in a completely different area that your insurance company are not aware of.

Best business practice means looking for the right premises at the best location, whilst approaching a broker for your motor trade insurance so they can go to the rest of the insurance market and get you the best deal for your business.