Motor Trade Insurance
From Just £32.67** Per Month

With this type of policy, you can drive you’re own car and also the cars that you’re working with.

However, there are exclusions to the types of cars you can drive on this policy. These restrictions can vary but usually, they include luxury, executive or high-powered vehicles.

This type of insurance is only suitable for people who work with vehicles for profit.

If you’re looking to insure your personal vehicle and you do not sell or repair cars, then you would not qualify for this particular road risk policy.

As trader’s insurance is specifically aimed at covering businesses, proof that you are a legitimate business is essential. Our insurance underwriters will only cover traders with a financial interest in the industry, as well as both experienced and new traders.

Luckily, proving that you are an active and genuine trader for profit is quite simple. 

Simply keeping a record of anything will show insurers that your business is active. Insurers will generally accept the following as proof:

•  Invoices and receipts of vehicles sold or repair services carried out.
• Advertisements – both online and in print.
• Tax forms.
• Registration documents.
• Business memberships and proof of a professional bank account.

Additionally, if you are a car seller, you must prove your business’ motor trade activity by providing details about turnover and the number of vehicles sold along with receipts.

We recommend that you do not send your evidence in the post as these documents may become lost. 

Create digital copies by scanning or taking photographs of your documents, then save them in a folder ready to email them to your insurer. When chatting with one of our insurance experts on the phone, we can guide you through the process of sending over all the evidence needed.

If you fix other people’s vehicles or sell cars to make a profit, you need at least  Third-Party cover – whether you run your business at home or elsewhere.

Even though this is the minimum legal requirement, we highly recommend that sellers running their businesses from homes consider a comprehensive or combined motor trade policy. From liability insurance to policies that protect your cash on-site, your cover can be tailored to suit your business.

Restrictions on the types of vehicles covered will vary depending on the type of motor trader insurance policy you’ve chosen and the insurer.

Usually, these restrictions cover imported cars or models of very high value and performance. Even if your vehicles don’t fit the usual criteria for some policies, we will find any existing policies that will suit your vehicle.

The Motor Insurance Database (MID) is a register of all vehicles insured and shows the identity of the relevant insurer.

You must keep the MID up to date concerning vehicles you own or those that are likely to be in your custody. Additionally, you will need to notify the MID when you no longer have these vehicles.

MID updates can include:

• Vehicles that you use for social, domestic and pleasure.
• Any vehicle used as part of your business.
• Trade plates.

It is a legal requirement for policyholders to supply accurate and timely MID updates. If a trader’s car does not show up as being insured on the MID, they could be stopped by the police, receive a penalty fine, and even have their vehicle impounded.