There is no reliable flat monthly price for motor trade insurance. A two-bay workshop handling six ordinary cars has a different exposure from a dealership holding R25 million of stock or a towing operator carrying luxury SUVs.
A useful quote starts with the maximum loss that could happen at one time—not just turnover. Insurers price vehicle accumulations, activities, road use, security, fire exposure, claims and selected limits.
The figures that drive the quote
Insurers usually separate property, customer vehicles, road risks, liability, workmanship and business interruption. Each section has its own exposure measure.
- Maximum total value of customer and stock vehicles at each address
- Highest value of any one vehicle
- Annual turnover and payroll
- Buildings, tools, diagnostic equipment and machinery values
- Road-test frequency, radius and driver profile
- Three to five years of claims
Why two similar workshops pay different premiums
A workshop in a sprinkler-protected industrial park with controlled keys and documented quality checks is not the same risk as one with overnight vehicles on an unfenced pavement. Higher excesses can reduce premium, but only if the business can fund them after a loss.
Hail zones, flood exposure, vehicle theft trends and the cost of modern sensors and body parts also influence rates.
How to compare quotations properly
Compare excesses, vehicle limits, driver restrictions, theft conditions, road radius and workmanship wording before comparing the bottom-line premium. Check whether VAT is included in sums insured and whether average applies after underinsurance.
Ask specifically whether customer vehicles, resulting damage after defective work and unaccompanied test drives are included.
A workshop selected a cheaper quote using an average of R1.2 million of customer vehicles. A weekend fire damaged vehicles worth R2.4 million. Because the declared maximum was too low, the settlement was restricted. Declaring the genuine maximum would have cost more, but would have matched the exposure.
Questions an insurer will ask
- What is the maximum—not average—vehicle value on site overnight?
- Which employees drive customer vehicles and how far?
- Are spray painting, welding, engine rebuilding or security fitments performed?
- What alarms, armed response, CCTV, tracking and key controls operate?
- Which prior losses occurred, including incidents below the excess?
General information only. RMI requirements, fees and processes can change; confirm current requirements directly with RMI. Insurance cover depends on the insurer’s schedule, wording, limits, excesses and conditions.