Does The Location of Your Business Have an Impact on The Cost of Motor Trade Insurance?
**As written for The Safe Driver
If you have recently decided to open a business that will be part of the motor trade industry, the chances of you needing to look for a location to start operating from is very likely. But did you know that your location could have an affect on how much you will be required to pay for your insurance premium?
Surprisingly, many people don’t know this until it is too late. By deciding to consider using this insurer, as well as making sure that you set up your business in the best location possible, you will have a much better chance at being able to reduce how much you pay for your insurance.
So, how much of a difference can your location make?
Crime Rate
If you are thinking about moving house, how likely are you to move to a house in a neighborhood that has been known to have a history of crime? Depending on your own individual circumstance, the chances of doing this may be very low. And the same could be said for your new motor trade business. By establishing a business in an area that is known to be very busy, or in an area that has had problems, you could face trouble yourself.
When the time comes for you to apply for your insurance, you could be faced with the possibility of having to pay more for your premium due to where you are located. This is because you now have a much greater risk of experiencing theft and vandalism than if your business was in a quiet, small town. Whilst this may not be an issue for most people, if you want to keep your insurance cost to a minimum, try and avoid these areas where you can.
Forecast of Sales
Though operating your business in a city centre could have its own risks, it does have its benefits, especially to the amount of sales and profit that you can generate over time. This is because more people could be in need of the services that you are offering. This could be good news, until you take the time to buy insurance or to think about your renewal. If you are working with more customers, the number of vehicles that you are working with will double, and this could increase any chances that you have of being in an accident, or causing damage to their vehicles.
Because of the increased risk that you may be subjected to, you must be aware that your premium, regardless of which company you decide to use, could soar in price. It can be disheartening but this is done with your best interest in mind, as you will be covering this increased risk if you are offering services to more people. So, bear this in mind when looking for a location.
Flood Risk
This point speaks for itself. Even though most areas don’t face the possibility of experiencing floods, due to being in a certain location or having efficient flood defences, you never know when a small amount of flooding could occur. And, if you have situated your premises somewhere that could be affected should this happen, be expected to pay higher insurance premiums to help cover this type of risk. It may never happen, but it would be better to have the relevant coverage in case it did, even if you do have to pay more money. Luckily, there are many plans that include this clause, so it is just a matter of looking for the cheapest plan that you can get.
What To Do Next
After finding the perfect premises and location for your business, you should always make sure that you are honest in all the documents that you will be required to obtain as part of your insurance plan. No one likes the thought of having to spend more money than they’d like on their insurance, but this is just part of owning a business. So, be honest. If you don’t provide the accurate information, there is a chance that your claims can be rejected, thus causing more problems for you down the line.
It can sound tempting, but it is the worst thing that you can possibly do. The price of your insurance will ultimately come down to the information that you provide, so be honest. And be sure to let your insurance company know of any changes to your location in the future.
It can be surprising to learn that your choice of location can have an affect on your insurance, but it can happen. So, before you decide to start the business of your dreams, make sure you take into account your location and whether or not this could affect your insurance. Then, you can take the time to plan accordingly.
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