If you are a car dealer or work in any part of the motor trade, you are only too aware that margins are tight and your cost-base is high. An article in AM Online on the 9thof November 2017, presented just some of the operating costs with which most car dealers have to grapple.
Your profitability may depend on the sale of cars and a wide range of services you provide – including the servicing, repairing, maintaining and possibly valeting of vehicles. Whilst all the time your overhead costs seem to be mounting – from staff costs to the utilities used on your premises, advertising to marketing.
But there is one inescapable operating cost essential to your business, and that is motor trade insurance. But, with an eye on safeguarding your bottom line, that does not mean you cannot save money on your motor trade insurance.
Let’s see how:
Specialists in motor trade insurance
· if you want to be sure of arranging the motor trade insurance suitable for your business, yet cover which may also saves you money, the expertise and experience we bring to bear here at Aston Scott could give you just that opportunity;
· whereas many other brokers may offer a product that meets your basic needs, our specialist knowledge may help to ensure that protection for your car dealership is tailored to meet your precise needs and requirements;
Road risks insurance
· in the first place, this extends to what is probably your core concern – road risks insurance;
· that is the cover which meets your basic legal obligation for insuring any vehicle which you or your staff are going to be driving;
· but it is also an element of insurance which could present sufficient flexibility for saving money where at all possible;
· do you need it to cover customers who take one of your cars for an accompanied test drive, for example;
· have you limited the named drivers to essential staff only – thereby potentially saving the expense of continuing to name those who are no longer working for you or no longer need the cover;
· is cover limited to the types of vehicle in which you are trading – so that you may exclude high-performance or especially high value imports which might otherwise increase the cost of the premiums you need to pay;
Premises, tools and equipment
· of course,you are likely to want adequate insurance cover for the premises you own, but avoid the temptation to over-insure – you may be paying over the odds for buildings that are over-valued;
· the total building sum insured needs to be sufficient to cover the cost of reconstruction in the event of a major disaster, but that is the rebuild cost alone and not the current market value of your premises, still less the price you paid to acquire them;
· as far as insurance for the tools and equipment used in your workshops and showrooms, however, avoid the risk of under-insurance, which might leave you inadequately funded if you need to repair or replace lost or damaged equipment and tools essential to your business;
· it may be a shortsighted economy to skimp on essential public or employers’ liability insurance, but ensuring the appropriate level of cover may help you save money on your motor trade insurance.
In your ongoing struggle to control overhead expenditure, therefore, it is likely to be well worth your while to look carefully at the cost of the motor trade insurance that is essential to your business.