During a recession, such as we are currently experiencing, it is essential that all businesses should reduce their expenditure wherever possible. It is a simple fact to understand that when income falls, expenditure must also be reduced in order to balance the books. When businesses have completed their cost-cutting exercises in the obvious areas, such as payroll and suppliers, they look to make savings in the peripheral areas of expenditure- such as insurance.

All businesses are required to hold insurance cover to a greater or lesser extent, be it material damage, goods in transit or the legally unavoidable road risk cover and employers liability insurance. Staveley Head, one of the UK’s leading motor trade insurance providers, has some important advice for those looking to reduce their insurance premiums. A spokesman said “Many people will opt for policies which are cheaper because the additional benefits such as windscreen cover or a courtesy vehicle in the event of an accident have been excluded from the policy. This can prove a false economy as the reduction in premium will only be marginal, and those benefits can prove very worthwhile if and when needed. It is far more effective to look at areas we tend to take for granted. Many policyholders request any driver cover because once in a blue moon, due to illness or holidays perhaps, someone else will be required to drive their vehicle. This is a very costly way of covering that eventuality. It is far cheaper to name on the policy the drivers you think you may need, and even cheaper again if it is your spouse or partner.”

The Staveley Head representative went on to say “It is also worthwhile considering an additional voluntary excess on the policy, certainly for careful and claim-free drivers. If you divide the amount of the voluntary excess by the number of years since your last claim and compare that to the annual saving in premium it should give you an indication of the overall economy of increasing your excess. Keeping your vehicle overnight in a garage or secure compound or driveway will also reduce your premium. A low annual mileage will also produce a lower premium. The annual average is between ten and twelve thousand miles, but if you only cover five thousand miles a year tell your insurer. Less miles means less risk for your insurer and consequently less premium. There is a number of ways that premiums can be reduced without losing any benefit in cover, and Staveley Head will be delighted to assist and advise anyone if they contact us on our website at www.staveleyhead.co.uk or telephone us on 0845 017 9991.”

Via EPR Network
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