Any - Car trade insurance

Honest John Back Room » Motoring discussion
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Sat 15 Dec 2012 13:12
Any - Car trade insurance - tony g
I'm ringing round looking round for renewal quotes for car trader insurance .

My present insurer who used to trade as MMA have declined to quote for my BD postcode .Its not difficult to imagine that they're loosing money in many inner city post codes ,probably because of the high incidence of fraudulent claims for whiplash ,fraud ,uninsured drivers etc .How to prevent people from behaving like that I dont know .

However the real point of my post is to comment on the amount of commission earned by insurance brokers .Ive been quoted £1250 for the same insurance company by two different insurance brokers . When I said I would be checking with my existing broker before placing the business .One of the brokers brought the price down to £970 . That suggests they are earning gross profits of 30% .A good margin for the service they provide ?. Possibly it's one of the reasons why insurance is so expensive ?
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Sat 15 Dec 2012 13:26
Any - Car trade insurance - Collos25

Since the advent of online brokers and price comparison sites then the premiums appear to have gone up.I had a friend who owned a hire company in a BD area the insurance became so much he packed in.May I suggest you register your business address in a low risk area.

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Sat 15 Dec 2012 14:11
Any - Car trade insurance - tony g
( May I suggest you register your business address in a low risk area. )

Hi collos ,I've considered a change of address to a better postcode ,unfortunately that would involve renting premises ,which would cost a lot more .

I currently have room to work from home , which costs me nothing ,in addition it's not wise to pretend to work from a different address .The insurance company would invalidate my insurance if they found me doing that .
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Sat 15 Dec 2012 17:22
Any - Car trade insurance - dacouch

The commission a normal broker would earn on a motor trade premium is normally between 7.5% and 12.5% of the pre Insurance Tax Price plus any fee they add. The majority of MT policies would pay 10%.

The branded brokers eg MTS etc who have a scheme with an Insurer which they place large amounts of business could well pitch their commission at between 15% and 25%. Their deal with the Insurer will be linked to perforamce of the account eg it providing a defined profit after claims payments to the Insurer, they may also receive bonus payments if the account performs to certain targets which like any other business can mean a in the run up to the end of the finanicial period for the scheme they can discount above their income from the policy in order to hit bonus targets.

It could also be your dealing directly with the Insurer eg Tradex and they would have their own profit margin plus what they would have paid a broker.

Do yourself a favour and avoid Tradex and Tradewise, they're even worse than MMA for motortrade claims and that's saying something

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