Ways technology can help reduce the cost of traders insurance

The increase of premium tax, changes the Ogden tables, it has been an expensive year for insurance customers. But technology and innovation have been mitigating these costs for businesses in the motor industry. More expensive premiums have encouraged more motor traders to find ways to reduce the cost of payments.

Telematics insurance for trade

For the personal market it has been telematics, more commonly known as the ‘Black Box’ ,which has reduced the cost of premiums. In this type of policy the driver is rewarded for safer driving. Data such as GPS and Acceleration speed, are recorded by a device fitted to the customer’s vehicle. These are used as indicators to underwriters. From these underwriters are able to assess the risk of the customer.

Telematics has had high adoption levels for personal coverage, but commercial sector uptake has been slower. Many motortrade policy customers have a high turnover of cars. Most insurers charge to install a black box, so it is not pragmatic for those buying and selling cars. It is this that has stopped it from becoming an industry standard. Where it has been beneficial for fleet customers, many motoring businesses are not suited to this type of policy.

Despite this companies such as mobile mechanics or recovery agents should consider telematics. Brokers can identify if this option is available to them. However as always it is important to take note of the algorithms and look at the small print. This is particularly relevant for telematics as some underwriters will class night time as higher risk. As such, some business operations may not be suitable for this type of coverage.

Dash board cams in the motor trade

The uptake of insurers accepting dash cam footage his been particularly interesting for car traders. Where in the past CCTV has helped in claim cases, dash board cams are doing the same for people on the road.

Customers can prevent themselves from being the victim of misappropriated blame. This is particularly important in the motor trade, due to the importance of no claims bonus. Brokers have reported that there have been discount of up to 50% for companies who are able to hold a policy for 3 years claim free. This alone makes it easy to justify the affordable purchase of this type of camera. The latest cameras include GPS tracking data as well as record speed .

This alongside telematics has made it easier for drivers to be rewarded for safe driving. Its popularity is being demonstrated by a report that footage was supplied in twice as many claims than last year.

Going further than this, some insurers even offer discounts for using a dash cam.

Comparison sites reducing the cost of premiums.

Everyone knows it is sensible to get multiple quotes before purchasing. But sometimes this is not as easy as it seems. In particular when it comes to something specialist. It can be challenging to even find three suppliers that are suitable, let alone get three relevant quotations.

This has historically been true for motortrade coverage. It is such a unique product and encompasses a wide range of businesses, from crash repair to tyre fitter, and recovery agent to service and repair.

It has been exciting to see that this niche is now benefitting from technology made available to other consumers. Quote comparison online for car businesses is quickly becoming the norm.

Motor traders now find it easier to find a better deal as it is quicker to compare more suppliers. In response to companies shopping around the underwriters have been forced to be more competitive. It is clear that comparison sites have been mitigating the rising cost of trade coverage. To read more about how businesses are comparing different premiums to get the best deal, please click here.

The advice to traders looking to reduce premiums it to embrace technology. Premiums are cheaper for those open to the option of using telematics, dash cams, and quote comparisons sites. It is these motortraders that are reducing the cost of their own premiums if the face of recent hikes.

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