For businesses in the motor trade the cost of their motor trade insurance can start from a few hundred pounds or dollars and go up to several hundred thousand depending on their size and requirements. This article looks at the two distinct options available to motor traders when buying their motor trade insurance.

Whether you purchase your cars new or used, use an independent car service repair or a franchised dealer or get your petrol and fuel from a supermarket or a local service station, the one common thing these type of businesses share is their need for protection and peace of mind in the form of motor trade insurance.

Combined Motor Trade Insurance is actually a type of insurance policy that can provide cover for many types of business in the auto industry including those who specialise in service and repair, sales, petrol sales or bodywork. And as the name suggests, a combined policy is designed for motor traders with premises who want a variety of risks covering under one simple to manage insurance policy.

So once a motor trader has established they need a combined policy they really a have options available to them in respect of how and where they buy it. A still relatively new way in which they can look to purchase motor trade insurance is by dealing direct with an insurance company. The benefit of dealing direct is that the trader can sort everything on their own so in the event of a loss and needing to make a claim, they can ring the insurer directly and deal with them until the claim is settled. This control of the policy is favoured by many motor traders who are happy that they understand exactly what they want and are happy to negotiate with insurance companies on premiums and claims settlements.

The second option available when buying motor trade insurance is still the one favoured by the majority of companies and that is to use an insurance broker. The benefits of using an insurance broker are numerous and range from their ability to approach several different insurance companies to in some cases being able to offer you expert advice and guidance which could help reduce your exposure to risk and your insurance premiums. When you combine this with the service that some insurance brokers provide when you suffer a loss in that they will negotiate with your insurance company to make sure your claim is settled quickly and favourably you can see why using an insurance broker is still the desired choice for most motor traders.

There really is no wrong or right decision and whether you deal direct with an insurance company or via an insurance broker who specialises in motor trade insurance is really down to personal opinion. As motor traders you should however be aware of the options available and make the choice on what is best for you and your business. Make the right decision and there is every chance in the current financial climate that your combined motor trade insurance premium could reduce in the coming year.