Motor Trade Insurance – The Facts

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When taking out a motor trade insurance policy, you want to be as well-informed as possible so you can make the right decisions and save money wherever possible. With this in mind, below are some of the top factors that affect the price of a motor trade insurance policy.

No claims bonus

One of the biggest things that affects the price of a motor trade insurance policy is the no claims bonus. A lengthy no claims bonus gives insurance providers a big assurance that they’re not going to have to pay out for many claims, if any at all. Of course this means in turn that they can offer a significantly lower price for the policy. No claims bonuses of 5 years or more can result in a discount of 65% of more. When you take this into account it’s easy to see why so many people value their no claims bonus so much.


Age is another very big factor when it comes to motor trade insurance (or any type of vehicle insurance for that matter). Younger drivers under the age of 25 are statistically much more likely to be involved in collisions. They’re also considered more reckless overall by insurers, which is why it can be quite tricky to get motor trade insurance under the age of 25 at an affordable rate.


The location of your business is another key thing that affects the cost of a motor trade policy. Businesses located in built-up urban areas will typically cost more to insure than those located in quieter areas. This is simply because there is an increased risk of accidents, theft and vandalism. Of course location isn’t always a consideration. For example a mobile mechanics policy will not need to take location into account.

Number of claims

When you’re with a particular insurance provider, the number of claims in the previous year of your policy will certainly affect the price you pay going forward. If you made a lot of claims then you’ll be considered high risk and therefore expect to pay a higher premium.

Types of vehicles being covered

Another big factor that insurance providers take into account is the type and value of vehicles being insurance. For example, a small used garage that sells budget cars is obviously going to pay less than a garage selling high-end, luxury cars. The value of the cars as well as how secure the premises is will certainly affect the price of the policy significantly.