Car Broker Insurance
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Why Compare Car Broker Insurance Quotes With SimplyQuote?
Finding the right insurance policies can be time-consuming. But it doesn’t have to be! You can use SimplyQuote’s online comparison tool to find and compare the best value car broker insurance options in the UK.
Search through dozens of offers from trusted insurers to find a deal that best suits you. The best part? It costs you absolutely nothing to compare with SimplyQuote, and you will almost certainly save money by finding a better insurance policy – making it a win-win for all businesses in the motor trade industry.
What Do You Need To Get A Car Broker Insurance Quote?
Provide us with the following information so we can provide you with a quote:
- Business information: Business name, address and structure (e.g. sole proprietorship or partnership)
- Description of business operations: Types of vehicles you broker, the area where you operate.
- Cover requirements
- Vehicle inventory
- Claims history
- Number of years you’ve been in business
Why Do You Need Car Broker Insurance?
Anyone in the motor trade industry will have to take out some kind of insurance as a legal requirement. Companies that broker or facilitate the sale of vehicles also need specific kinds of insurance.
At a minimum, you will require employer’s liability insurance if you employ more than one staff member in the UK.
If you drive your customers’ cars, you will also legally need road risk insurance.
For most car traders, having the right level of insurance in place is absolutely vital. It provides protection against the unknown, enabling you to run your business with the confidence that even if something goes wrong, your business will have the financial support it needs.
Without the correct cover, your business could face high costs to replace or repair stock or damage to your business premises. Your business may also be liable to meet expensive court fees and compensation payouts.
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What Does Car Broker Insurance Cover?
Car broker insurance typically covers employers’ liability and road risk.
Employers’ liability cover
Employers’ liability insurance is a legal requirement for any business in the UK that employs staff, even if it is casual, part-time workers or volunteers.
This insurance financially protects your business if a staff member is injured at work and takes the company to court.
If you are found not to have employers’ liability cover, you risk getting fined £2,500 per day until you get the correct insurance policy.
Road risk cover
If you or your employees drive cars that don’t belong to you – say you’re taking a car to a customer – then you legally need road risk cover.
This insurance covers you if you drive any vehicles on public roads, even if they don’t belong to you.
What’s not covered?
- Personal vehicle use
- Intentional acts (any damage caused by fraudulent actions or misconduct by your employees)
- Damage to the property not related to business operations (e.g. if personal property of the employees is damaged)
- Certain types of vehicles (e.g. high-performance sports cars or classic cars)
What Levels Of Road Risk Motor Trade Insurance Can You Get?
Although you can’t get different levels of car broker insurance, you can opt for different levels of road risk insurance as part of your car broker insurance policy, just like you can with any standard car insurance policy. These levels are third-party only (TPO), third-party, fire and theft (TPFT) and comprehensive cover.
Third-party only (TPO)
The bare minimum legal requirement. If there is an accident caused by you, the insurance covers the cost of damage or injury to third parties. However, the cover doesn’t extend to your vehicle, so you will be liable to pay to repair the car you’re driving when involved in an accident.
Third-party, fire and theft (TPFT)
This is more extensive than third-party only insurance as it also insures against vehicles being stolen or damaged by fire.
Fully comprehensive
This insurance covers the cost to repair or replace the vehicle you are driving when damaged in an accident. It will also cover legal expenses should a third party file a claim against you, and any medical expenses.
Which Add-Ons Are Available For Car Broker Insurance?
Talk to your insurance broker about getting the following additional extras added to your car broker insurance policy:
- Demonstration cover: Insurance that permits your customers to test-drive the vehicles you are trading as a car broker.
- Trade plate cover: Covers unregistered cars that are using trade plates when it is stolen or involved in an accident.
- Business premises cover: Covers repairs to your business premises, such as your showroom or stockyard if it is damaged in for example a fire or flood.
- Business interruption cover: If you have to unexpectedly close your business because of a fire or flood (or any circumstances beyond your control), this cover helps you pay bills and salaries.
- Public liability insurance: Covers legal fees and compensation if a member of the public is injured on your business premises, for example, if they slip and hurt themselves in your showroom.
- Tools and equipment cover: Insures your stock, tools, machinery and all other equipment should they be damaged or stolen.
- Classic car insurance: If you trade classic cars, you should get this add-on to make sure all your stock is covered.
How Much Does Insurance Cost For Car Brokers?
Car brokers insurance is a type of motor trade insurance, which costs an average of £776 per year.
The cost of car broker insurance will depend on which insurance provider deal with as well as the level of cover you opt for.
Which factors impact the cost of insurance premiums?
The following factors will affect the quotes that insurance brokers provide you with:
- The size of your business
- The complexity of business operations
- Address of your business premises
- How secure your business premises are
- How many staff you employ
- Additional extras added to your policy
- Level of cover for road risk insurance
- How experienced your named drivers are
How Can You Get Cheaper Insurance Rates?
There are several ways in which you can reduce your car broker insurance premiums:
Value precisely
Accuracy is critical if you want to find the best quotes for insuring your car dealership. If you overestimate your stock or the value of your premises or equipment, you could end up paying more for insurance than you should.
However, if you undervalue the worth, you might get caught short. If an unexpected event happens that means you need to claim on your insurance, you might find the amount you are insured for doesn’t cover your needs.
What’s more, if your insurance provider thinks you have been dishonest, they might invalidate your insurance altogether, which could have disastrous consequences.
Be as transparent as possible and give precise valuations to ensure your business has the best chance of good rates on your motor trade insurance.
Improve security measures at your business premises
The safety and security of your business premises is important. If you leave your business vulnerable to the possibility of theft or vandalism, your dealership will appear to be a greater risk to insurers.
This means insurance firms will expect that your business has more chance of making a claim and they will protect themselves by increasing their quotes.
You’re likely to be given lower quotes if you make your business premises safer, for example by installing additional security features such as alarm systems and CCTV cameras to deter criminal activity.
Not only does this give you the practical benefit of less risk of a break-in, but it also encourages insurance firms to offer you better deals.
Shop around
The best way to find a better deal and compare insurance quotes. Use comparison sites like SimplyQuote, or arrange calls with car insurance brokers to see which deals they can offer you.
Choose mature drivers
Most insurance providers will quote you more for named drivers who are under 25, and some won’t insure young drivers at all.
Statistics show that younger drivers who are not experienced behind the wheel are more likely to be involved in accidents, increasing your risk of making a claim.
The best thing you can do is choose named drivers who are safe, experienced, over 25 years old and have clean driving licenses. By doing this, you show insurers that your drivers will be unlikely to cause an accident and your dealership would be unlikely to claim on insurance. In return, they’ll offer you better quotes.
Pay annually
Paying for your premium in one lump sum is helpful for insurance providers because it reduces administrative load and removes the possibility that you might miss your payments.
This cuts the costs for your insurance firm, so they’ll reward you by offering a cheaper deal overall. As long as a single, annual payment is affordable, this makes good financial sense for your business. Plus, you will skip out on the interest on monthly payments. A win-win!
How To Compare Car Broker Insurance Quotes With SimplyQuote?
Compare car broker insurance quotes with SimplyQuote in just four steps:
- Fill in our short form: Tell us about your business, stock and drivers.
- Choose insurance add-ons: Select which optional extras you want to add to your car broker insurance policy.
- Compare insurance quotes: Find the most suitable and affordable quote.
- Start saving: Get the best insurance deal!
Frequently Asked Questions
Designed for automobile traders selling new or used cars, car broker insurance is a type of motor trade insurance. It’s sometimes referred to as car dealership insurance and car trader insurance.
Car broker insurance is a specialist insurance designed for businesses involved in brokering or facilitating the sale of vehicles. It provides cover tailored to the unique risks faced by car brokers, such as employer’s liability, road risk, and cover for inventory.
Regular car insurance is intended for personal vehicles and typically does not provide the same level of cover for businesses engaged in vehicle sales.