If you are a young driver starting out as a courier, driver or mechanic within the motor trade, you may find that getting road risk, van or courier insurance comes at a price, generally quite a high one. The same may be encountered by fleet companies looking to employ younger drivers or apprentices.
However, there are some things you can do to make sure your premium remains reasonable when drivers are under the age of 25.
When looking at a new policy or to renew your full-time or part-time motor trade insurance, fleet van insurance or our flexible home fleet insurance, here is some advice on what Tradex looks for when considering your annual premium.
What’s the Cost of Younger Age Insurance?
The straight answer is that if you employ drivers under the age of 25, or you are a driver starting out in your own business, insurance will be more costly the younger you are, and there may even be some reluctance to offer insurance at all.
When an insurance broker calculates your premium, they do so by looking at the possibility of risk. As there is a higher possibility that an inexperienced driver will be involved in an accident, especially if you are driving for work, the risk increases substantially.
If you are between the ages of 21 and 25, some insurance companies are more likely to consider you for a road risk insurance policy when starting out if you can prove you have ‘on the job’ experience and have spent time gaining skills. This can be within service and repair, valeting, helping with deliveries, tyre fitting or break down and recovery.
What Cover can you get when under 25?
As a new motor trade business, you will need road risk insurance which allows you to drive your own vehicle as well as those of your customers. Road risk insurance is available as a minimum of third-party only cover, which is cheaper, up to fully comprehensive which covers you and your clients.
Nine Ways to Reduce Your Motor Trade Insurance
1. Increase Your Excess
When getting a quote for your car insurance, you will be asked to choose a level of excess. This will be the amount you will have to pay out in the event of a claim. Making your excess higher will reduce your premium but make sure you can afford to pay the extra amount should an accident happen.
2. Payment Upfront
Paying your motor trade insurance in one lump sum can reduce your premium significantly. If you can afford to do this, then it may be one way to save a substantial amount.
3. Install a Black Box
A black box is installed in the vehicle to help monitor driver behaviour and will help to lower your premium when your policy is up for its annual renewal (provided the vehicle driver has been practicing safe and responsible driving). It also allows an employer to see if a young driver needs further training to improve on their driving knowledge and skills.
4. Choose A Less Powerful Vehicle
A car or van with a smaller engine will not only be cheaper to run, it could reduce your insurance costs. As a rule, the more powerful your car, the more expensive it will be to insure, especially if you’re a recently qualified driver.
5. Choosing Your Vehicle Insurance Group?
The size of your vehicle as well as the vehicle category will also have an impact on your premium. Generally, the smaller the size of the van or car, the lower the premium. All vehicles also have an insurance group number – the lower that number is, the cheaper your vehicle will be to insure due to reduced repair costs, cheaper parts, the value of the car at purchase, as well as the engine size mentioned above.
6 Securing Your Vehicle Off-Road
Where your vehicle is parked at night when not being driven is important to insurance providers, as well as what security you have in place to prevent theft. Fit your vehicle with an alarm or immobiliser, or some other security system, and park in a brightly lit, secure location, preferably a driveway, locked yard or garage.
7. No Claims Bonus Boost
Younger drivers are often at a disadvantage as they haven’t had an opportunity to build up a no claims bonus history. Some insurance companies may give you the option of transferring your private car no-claims bonus to a motor trade policy. Tradex offers a special Bonus Booster, which gives those with no bonus a six-month policy to accrue a year’s no claims bonus when looking to take out a full-term policy.
8. Monitor driving Ability
Employees can help to keep an eye on annual premiums by monitoring their drivers. If a driver has had too many accidents, has any convictions or points on their licence, it may be worthwhile removing them from the policy until they can demonstrate safety on the road.
9. Home Fleet Insurance
Home fleet insurance offers a multi-vehicle policy that puts all vehicles on one policy. The higher the number of vehicles, the greater the saving and all types can be included from family cars to classics, motorbikes and commercial vehicles.
Tradex takes a flexible approach to insuring young drivers, assessing risk on an individual basis. We insure new ventures and trader’s insurance for under 25s who are starting businesses or who are apprentices and can provide competitive policies.