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Monthly Archives: April 2018

Keep Motor Trade Insurance Cost Down

It’s essential when taking out any motor trade insurance, that you check to see if there are any vehicles eliminated from the list of vehicles safe to drive. Driving a customer’s high performance vehicle when you don’t have adequate cover to do so, can cause serious financial problems should you be involved in an accident.

Where is your building located? This is another very important consideration. In many cases being located in a city or town can increase the premium. This also depends on area, areas are listed according to crime rate and other statistics, things you have no control over. Where you can make a difference is to put security measures in place, such as alarm systems, strong roller doors and even bars on the windows, reducing the risk of a break in and reducing your risk to the insurer.

If you have been in the industry for some time and are currently shopping around to find a better price, then take advantage of the no claims bonus you have been building up over the years. Many insurers will take a no claims bonus into consideration, this is their way of knowing you are not a major risk and these bonuses will often have a significant impact on your annual premium.

One of the most risky parts of owning a business within the industry is driving customer’s vehicles. As you know you need to have valid cover in place to drive a vehicle on the road. When it comes to private cover, you are only covered to drive a specific vehicle, but when you’re driving numerous vehicles on a daily basis, you will need road risks cover.

The good news with this cover is you can add all your staff, the bad news is that the staffs driving records and age will impact how much your premium will increase. Keep your drivers to a minimum, ensure they are over twenty five and have a clean driving license to keep your motor trade insurance cost down.

Another great way to keep your motor trade insurance cost down is to discuss voluntary excess with your broker. Many companies will allow you to choose this option; it lowers your annual premium, but increases your excess should you ever need to claim. This is advantageous if you need to have adequate cover in place, but haven’t claimed for some time.

Info of Auto Insurance Renewal

· Annual Policy: an auto insurance policy that is valid for one year.

· Semi-annual Policy: some policies are valid for only 6-moths period. For policyholders, 6-months provide the chance to improve DMV records and reduce the premium for the next renewal date.

Auto insurance companies have the obligation to notice policyholder about renewal information. They can send it via mail or email within 45 – 30 days in advance of renewal date. Unless policyholders want to make changes to the current policy, renewal process should be quick and easy. Nonetheless, it is best for policyholders to do their due diligence and check for errors or unexpected surcharge. Before the renewal takes place, please make time to:

· Review the policy: the best time to verify discounts or make changes to coverage is on renewal date. It becomes more important when policyholders have practiced safety guidelines from the insurer as a requirement for discount eligibility. Auto insurers often reward good customers with lower premium as well. In many cases, it takes an insurance agent to see potential changes in the policy.

· Make payment: whether policyholders want to continue or cancel the policy, the best time to notify the insurer is on renewal date (or several weeks before). Some carriers do not allow for grace period on renewals, so they can cancel the policies because there is no payment confirmation. Even when policyholders want to switch to new carrier, it is important to notify the current insurer to avoid fines.

Premium Surcharge

An increase in premium rate is not uncommon. It happens for two main reasons. First, the insurance company increases the base rate. In this case, all policyholders should get premium surcharge. Even good drivers with clean records should pay more under this circumstance. Another reason is that the policyholder has higher risk than before in the previous period. Traffic tickets and bad credit score can lead to premium surcharge. Auto insurance claims for an at-fault accident almost always increase the premium as well.

Changes before Renewal

Insurers allow policyholders to make changes in the policies between renewals; this regulation applies only for auto/car insurance policy. Other vehicles such as RV, boat, and motorcycles may not have this option. Changes in policy for examples coverage omission or vehicle removal from the list can offset the premium surcharge from bad DMV records. In worst scenario where policyholders have records of involvement in accidents that cause severe injuries or deaths, the rate can go very high beyond affordability. To compensate for expensive premium, policyholders can choose to purchase only state’s minimum coverage requirements.

Truck Insurance Coverage

First off, physical damage coverage is used to protect your truck and your trailer in the event of an accident. The premium that you would pay for this protection primarily depends on the value of your equipment. This cost, in fact, is usually a percentage of the total value of your equipment. Federal and state law does not require physical damage coverage for you to legally be on the road, but if your equipment is financed, then your lien holder most likely will require it. If you do purchase this coverage, it is smart to only acquire enough protection to cover the value of your equipment. Purchasing less coverage could leave you with significant out-of-pocket expenses, and purchasing too much is the same as throwing your money away since truck insurance companies will only pay you the amount that your truck is valued at in the case of an accident.

The next term to be aware of is primary auto liability coverage. This type of truck insurance is required by federal and state regulations. Primary auto liability coverage protects you in the event that a third party is injured in an accident that you and your vehicle are involved in. Along with primary auto liability is general liability protection. This coverage protects you against the cost of any property damage or bodily injury that might occur which does not involve your rig. Some examples of incidents that are covered by general liability protection are slips and falls at a place of business, property damage or injury caused by faulty advertising, and contractual exposure that you might assume as an owner operator or even as a driver for a company.

Other important types of liability coverage that you may consider are non-trucking liability, non-owned trailer liability, and trailer interchange liability. Non-trucking liability, also called deadhead coverage, pays for an accident that occurs while the driver or the rig is not under dispatch or in the process of making a delivery. Non-owned trailer liability protects the trailer that you are pulling if another party owns it. This type of coverage is essential for owner-operators that carry the trailers of various companies at any given time. $20,000.00 is a standard protection amount for this type of coverage. Trailer interchange liability, on the other hand, is used when there is an interchange agreement being observed between two parties. An example of this would be a partnership with a steamship line.

Lower Auto Insurance

Revise coverage on old vehicles

For the older car that is free of finance, it may be worth revising the insurance coverage for collision only. This is the type of protection that is required if damage is coursed to a third-party vehicle. In many cases, this simple step can help to make a useful saving on the cost of insurance.

Use a single insurance company

Try to use a single insurance company for multiple policies, such as auto, home, travel, etc. A benefit of this is the ability to gain a multi-line discount, which is usually in the region of insurance of the total annual premium.

Careful driving

There are plenty of insurance policies that offer incentives for a lower premium. One of these incentives is a proven record of careful driving, which can include staying out of accidents and avoid speeding. This has the potential to give a further discount on the annual premium of about insurance. Also, by avoiding any traffic violations over a period of 3 years; it is possible to get a further deduction of costs.

Increase the deductible

A further simple step to control the costs is to increase the deductible amount. This is the first amount paid by the policy holder at the time of making a claim. By increasing the deductible from $250 to $500, there is the potential to make a substantial difference. The deductible can even be increased to an amount like $1,000, which should go a long way to control the insurance premium. But, it is sensible to only raise the deductible to an amount that is affordable, and easily payable in the event of needing to make an insurance claim.