If you’re under the age of 25 and looking to start up your own motor trade business then you might be worried that it won’t be possible, either because you don’t have the experience or cannot get insurance.
The truth is that it’s certainly possible for younger people to set up in the motor trade. You just have to know how to go about it in the right way.
Getting affordable insurance
Getting insurance at an affordable price is one of the biggest challenges for young motor traders. A lot of insurance providers won’t even offer insurance to those who are under 25, believing that the risks are too great.
The good news is that there are specialist providers of motor trade insurance policies for those who are under the age of 25.
Some ways to cut down the cost of insurance include –
- Paying for your policy upfront - Paying for your policy upfront will cost more initially but it will put you in a position to negotiate a lower premium. It might not always be affordable but if you can pay annually rather than monthly then you should fight to get the lowest rate possible.
- Getting a lower level of cover - Although it’s nice to know that every aspect of your business is covered, it will cost more to get a comprehensive policy. A third party policy will still enable you to work on customer vehicles but costs a lot less.
- Make your premises secure - If you get a combined policy that covers your premises then you’ll want to take any steps you can to make it secure. By taking precautions such as installing security lights and CCTV, you can reduce the cost of your insurance significantly.
Choosing the right type of business
Choosing the right type of business to set up is vital if you want to stand the best chance of success. The right type of business will depend on what skills you have and what you enjoy doing. For example, if you’ve trained as a mechanic then it makes sense to set up a business in that field rather than something you have little experience with, such as buying and selling cars.