It is important to have insurance because it saves us from hard times. There are many businesses that need to have business vehicles to get their business running. The vehicles become extremely necessary if you want to get your task done fast. It is also our duty to make sure that the car is safe. If the car is safe then we are safe as well. Hence, the Motor Trade Insurance becomes extremely necessary. Nothing in this world comes free and so this policy requires a premium to be paid to help you insure under the Traders Insurance. There are some factors that affect the premiums and those are listed below.

The types of the motor trade policy

The premiums mainly depend on the policy that you undertake and the items that the policy would have to cover. An expensive car will have a premium higher than that of the low-value car. That is because the repair cost and the parts of the car are expensive and hence the premiums are expensive. In addition to that, the types of car and its past records also determine the premiums. That is because the depreciation that the car is supposed to have over the year to come, increases the repairing cost as well.


The location also plays a major role in determining the premium for your car. The insurance company looks into the factors like if you are operating from a separate premise or you run the business from home. They also take into account if the location is prone to floods or any natural disaster. They look if the crime rate is higher than the expected rate in your area or if the locality you are living in is dangerous or not. All these factors together combine to set the premium rates.

No claims bonus

The no claim bonus is the most significant factor that could reduce the motor trade premium significantly. The more the years you do not claim a bonus for the vehicle, the more discounts you are expected to get. This reduces the premium rates very much. The reason for this is that the no claims already save the insurer money and they give it to you as discounts.

Driving Convictions

The driving convictions can have a negative effect on the premiums. If you have few speeding fines against you its fine, but too many have a bad impact on the premium as you are considered a negligent driver.


Next time you decide to take Traders Insurance to make sure to look into factors to get the lowest premiums.

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