How much does Mechanic Insurance cost?
Insurance for your motor mechanic business is critical to protecting your business financially over the long term. Unexpected incidents can be costly and may even cause your business to close if you are not prepared.
So how much does mechanic insurance cost? Is it worth it?
What types of insurance does a motor mechanic need?
To fully cover your motor mechanic business there are many types of insurance to consider with the help of an insurance broker for motor mechanics. Some to ask about include:
- Public liability insurance - Ask about driving risk extension for your test drives
- Workers Compensation Insurance
- Professional indemnity Insurance
- Commercial property Insurance - If you are renting check what insurances you are responsible for
- Mechanical equipment, stock and Contents insurance
- Business interruption insurance
- Machinery breakdown insurance
- Income protection insurance and TPD insurance
- Business Car insurance
- Cyber Insurance
What factors impact the cost of my motor mechanics insurance?
Some of the factors that may increase or decrease your premium cost include:
- Do you offer a mobile service?
- Have you made any workplace safety upgrades?
- Have your staff completed any new training?
- Do you take cars out for test drives on public roads?
- Are your customers’ cars left on or outside your premises overnight?
- Are your premises secured adequately?
- Have you actioned any disaster preparation measures?
- Do you service exotic or high value cars?
- If you are renting a property, what insurances are you responsible for?
- How much specialised equipment do you run?
- Do you have a courtesy car or delivery van?
- What cyber security measures do you have in place?
- Do you service commercial vehicles over 2 tonne carrying capacity?
Each of these questions is a starting point in working out the level and cost of insurance for your motor mechanics business.
How can I reduce my motor mechanics insurance costs?
The best way to save on your motor mechanics insurance is to review your current coverage with the help of an insurance broker who understands motor mechanics insurance. Here are 7 tips to help reduce the cost of your business insurance:
- Remove unnecessary coverage: Do I need all the policies I have? Am I covered for anything I don’t need?
- Review your level of cover: Do I have the right levels of cover for my equipment value or stock on hand? Are my revenue and staff numbers accurate in my policies?
- Ask about different cost structures: Can I pay annually?
- Shop around: Are there any new policies available with better value?
- Look for a package deal: Would a business pack work for me?
- Reduce your risk: Have I done a risk assessment and can I introduce workplace safety changes?
- Just ask: How can I get a discount on my insurance?
Your insurance broker is your best ally in helping to both reduce your motor mechanics insurance premiums while also ensuring the financial stability of your motor mechanics business.
If you are running a motor mechanic workshop Urban Insurance can help to ensure that adequate motor mechanic insurance is in place to ensure your workshop is covered for all of its risks.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Naweed Lateef.