Written by Michael Foote, Insurance Expert
Renewing your motor trade insurance is more than just letting the policy roll over. If your business has changed, or if the insurer has altered their terms, you could end up paying too much or being underinsured.
Important to note: for business insurance, the responsibility is on the business to make the sure they have the right cover.
This guide outlines what to review before you accept your renewal quote, and how to make sure your cover still matches your business.
1. Has Anything Changed in Your Business?
Start by asking yourself:
- Have you taken on staff or let anyone go?
- Are you working on different types of vehicles?
- Have you moved premises or added a second location?
- Are you handling more stock or higher-value equipment?
If the answer is yes to any of the above, your existing policy may not be fully up to date. You’ll need to tell your insurer or broker so they can reassess the risk and adjust your cover if needed.
This applies across all professions, from mechanics to car valeters.
2. Are You Still Getting Competitive Pricing?
Don’t assume loyalty means the best rate. Renewal quotes can creep up even if your risk profile hasn’t changed. It’s worth:
- Asking your broker to review other options
- Comparing quotes from specialist motor trade providers through the comparison service on our site
- Checking whether no-claims bonuses have been applied correctly
Even small errors, like overstating your turnover or forgetting to remove an old vehicle, can affect pricing.
3. Are Your Insured Values Still Accurate?
Over time, you may have:
- Bought new diagnostic tools or equipment
- Increased the number of vehicles stored on site
- Expanded your business assets
If your declared tool value or stock limit hasn’t changed, you may be underinsured. In the event of a loss, this could mean you’re only partly reimbursed.
Keep an up-to-date inventory and double-check what’s covered, especially if you’ve invested in new kit over the past 12 months.
4. Have Any Terms or Excesses Changed?
When your insurer sends the renewal paperwork, don’t just look at the price, check the fine print. In particular:
- Has the voluntary excess increased?
- Are there any new exclusions or security conditions?
- Have limits for tools, stock, or business interruption changed?
Insurers occasionally update policy wordings at renewal, especially if market conditions change. Make sure you’re not being caught out by something that used to be covered but now isn’t.
5. Is It Still the Right Type of Policy?
If you started with road risk only and have since opened a premises, employed staff, or begun offering more complex services, you may need to upgrade to a combined policy.
Or vice versa, if you’ve scaled back your operation, you might be able to reduce your level of cover and cut your premium accordingly.
