What is a car traders policy?

A Motor Trade insurance policy is an insurance product that protects someone who deals with cars as their profession or business; this can be as a full-time job or on a part-time basis. It doesn't matter if you are a sole trader or if you're a Limited Company and hire employees, you will need Traders insurance.

What does a car traders policy cover?

Motor trade insurance, or traders' insurance, covers your employees when they're driving or working on your customers' vehicles, as well as those owned by the business itself. It's used by a wide range of businesses. Usually, it benefits those involved in repairing or selling vehicles.

Can anyone drive a car on traders policy?

If you're not a named driver on that policy and their car isn't included in your motor trade cover, then no, you can't drive it. If they're a customer of yours and their car needs to be driven by you as part of your business, then your motor trade policy should cover this.

How much does traders insurance cost?

Although giving an exact premium with no details is almost impossible, we can tell you our road risk policies start from: Third Party £318* What does this cover. Third Party Fire and Theft £382* What does this cover. Fully Comprehensive £477* What does this cover.

What is classed as a motor trader?

Any job that involves buying and selling vehicles, transporting them as a business (e.g. recovery operators, vehicle transporters taking cars to and from showrooms etc.), servicing them or repairing them, is a motor trade business.

What does it cost to become a motor trader (what do you legally need)

Can you drive an uninsured car on a traders policy?

It is possible to drive an uninsured car on a motor trader's insurance policy, however that car would then be considered insured. Therefore the answer to whether you can at any time drive a car or other mode of transportation that is classed as uninsured just because you have a trader's policy would be incorrect.

How do I get a traders policy?

To even qualify for a Motor Trade insurance policy, you must first be able to provide evidence that you are running a business that generates a source of income, such as receipts from vehicles you've bought and sold, or documents showing vehicles you've worked on.

Who can drive on traders insurance?

In summary, Motor Trade policies are designed for you to operate your business, and to allow you to drive your own vehicles and customers' vehicles, but you can't just drive the vehicles belonging to your friends or family members if they are not on the policy.

Why is trade insurance so expensive?

Factors that impact the cost of your motor trade insurance

The drivers on your motor trade policy and their driving history. The location of your business – as with any insurance policy, areas with higher crime rate are likely to incur a higher cost. The type of motor trade activity. The types of vehicles you work on.

Do traders need insurance?

Contracts you take on could specify you have to be insured. Local authorities and some bigger corporations usually expect those who work for them as sole traders to have public liability insurance and professional indemnity as standard.

Do car traders have to be registered?

There is more information about applying for and using trade licence plates on the Gov.uk website. under the provisions of the Money Laundering Regulations 'high value dealers', including motor dealers, must apply to register with HM Revenue & Customs (HMRC) and put in place anti-money laundering systems.

Is it safe to buy a car from a trader?

You can ask a trader to show you a recent independent check on the finance and other history such as Hpi or similar. You should always check a vehicle carefully and test drive it before purchasing, testing to check if it drives smoothly and feels fault free.

Do you need a license to be a car trader?

This is a top priority when considering a move into the motor trade business, as licences depend on this fact. Should you choose to opt to work as a private motor trader then a licence is not needed, but for those interested in public motor trade, then a licence is imperative.

Is Traders insurance fully comprehensive?

It's a complete insurance package for the motor trade which will protect your business, employees, the work carried out, the vehicles under your control and any premises you may own or rent.

Am I insured to drive a car with trade plates?

It is important to note that you need trade plate insurance before you can legally drive a car with trade plates on public roads.

How old do you have to be to get traders insurance?

If you're 21 or younger, motor trade insurance is not generally available. If you're 21-23 years old, you can sometimes be accepted for motor trade insurance if you work in servicing or repairing vehicles.

What does traders insurance do?

Motor Trade Insurance, also known as Traders Insurance. Traders Insurance, is a highly versatile insurance policy that aims to effectively cover businesses and their employees. This will cover any vehicle that is in your 'care, custody or control' in addition to any of the business' own vehicles.

Why is trade insurance important?

Trade insurance allows businesses to establish a quality risk management system while trade credit insurance products safeguard businesses from instability, customer bankruptcy, and other credit risks. Different types of insurance covers can protect your investment from particular circumstances and issues.

Why is trade in so cheap?

To help increase value, reputable dealers will even fix worn or broken items such as paint, lights, audio systems, and other functions. As a result, a dealer needs to offer a trade-in value below the car's retail value so they can still make some money on it after the reconditioning is complete.

Can a 17 year old get traders insurance?

Whether a part time or full time trader. Running a business from your own premises or from home. If you are self employed or employ others, there is a form of trade insurance cover available to you if you are 17, 18, 19 or 20 years old.

Can I add someone to my traders insurance?

Add Your Spouse or Partner for as Little as 5%

You can add your spouse, as long as you are cohabitating, on to your Motor Trade insurance policy with very little fuss, and it can cost as little as 5% of the total price of your Traders insurance premium. There's more good news!

Do you need motor trade insurance to sell cars?

Buying and selling cars for profit

That's because running a motor trade business requires the vehicles in your possession to be insured. No matter how frequently you buy and sell, you need road risks insurance to legally drive the vehicles. To get a policy, you must prove you are buying vehicles to sell them.

What insurance do I need to sell cars?

It's motor-specific business insurance that you'll need if your company has customers' vehicles in its care, custody or control. You'll also need motor trade insurance if your business involves selling vehicles. It'll cover you while demonstrating, collecting and delivering cars.

Does motor trade insurance cover my personal car?

With private motor insurance, you cover the vehicle you personally own or are the registered keeper for. With motor trade insurance, you can cover vehicles you have purchased to sell on to other people as well as vehicles that belong to customers – for example, if you are servicing or repairing them.

Can you be a car trader from home?

Getting started as a car dealer can be one of the less costly options for entrepreneurs as well, as you can start from home, without needing to find a business premises, and operate as a sole trader.