Scrap Metal Dealer Insurance

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Scrap metal dealer insurance

Working in the scrap industry carries many risks, including driving company cars, customer vehicles and operating heavy machinery. As a result, having the correct cover in place can prove essential should any accidents happen. Depending on your specific circumstances, some insurance covers may also be a legal requirement.

As a leading price comparison site, we understand that finding the right cover for your scrap dealership is essential, as is the need to right it at the right price.

We work with a panel of motor trade insurance providers who can offer expert, specialist advice and provide competitively priced insurance quotes for scrap dealers to make this process as quick and easy as possible. When you submit your details via the quote form, you can compare quotes from up to 5 insurance providers and choose the most suitable policy.

What cover do I need for my scrap yard?

As with all motor trade insurance policies, no single business is the same, and a tailored policy is therefore critical to ensure you are purchasing the right cover. A scrap dealer insurance policy may include some of the following covers:

  • Road risk cover: although many of the vehicles you take in for scrap will be un-drivable, there may be times when you drive a customer’s vehicle back to the scrap yard for recovery. In this situation, you will need to have road risk insurance. At the same time, a road risk policy can also cover all or some of your employees to drive company cars, tow trucks and other vehicles, provided they are driven for business purposes.
  • Employer’s liability: it is a legal requirement for most businesses with employees to have employer’s liability insurance. It protects employees and employers from incidents, including accidents at work. The minimum level of cover required is typically £5,000,000.
  • Business premises cover: can protect your scrap yard and buildings from various risks, including fire and flood damage.
  • Equipment cover: scrap yards will have expensive machinery and equipment to carry out their business, which you can insure.
scrap metal dealer insurance

Cutting the cost of scrap dealer insurance

Working in a scrap yard is on the riskier end of the spectrum of businesses and policy prices will reflect this. However, you can still find cheap insurance for your breakers yard by following these tips:

  • Do not over insure: it sounds obvious, but purchasing more cover for your scrap business than is necessary is an easy mistake to make. To avoid this, talk through each policy aspect with the insurance provider.
  • Build up your no claims bonus: If you’re arranging motor trade insurance for the first time, this tip won’t help immediately, but it is worth bearing in mind if you ever need to make a claim. A no claims bonus on your scrap yard insurance policy will help reduce costs, and in some cases, it may be worth paying out for more minor claims yourself as opposed to claiming on your insurance and losing your no claims bonus.
  • Experienced operators and drivers: having experienced named drivers on your policy who are also conviction and accident-free will help reduce costs. At the same time, avoid adding drivers under the age of 25 to your motor trade policy as they tend to increase claim rates and therefore cost more to insure.
  • Annual renewal: if possible, pay for your scrap dealer cover in one yearly payment as opposed to spreading the cost over 12 months and therefore incurring interest charges for borrowing. Finally, make use of a:

Scrap dealer insurance comparison service

Taking the time to compare quotes each year means you could take advantage of new customer insurance prices. Auto-renewing year on year is the easier option, but you are unlikely to be given the best price available if you stay put.

Written By Michael Foote, Insurance and Finance Expert

Michael Foote is the founder of Quote Goat and has over 13 years experience working in the finance, insurance and currency sectors. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city for a number of firms including HSBC.