Frequently Asked Questions on Motor Trade Insurance ( FAQ's )
Below we have compiled a list of questions that are asked frequently on the subject of motor trade insurance and sole trader insurance. The question list is updated on a regular basis so that the content remains relevant.
This is normally referred to as motor trade insurance, but it covers van and bike traders. If your business is related to the motor transport industry for example a mobile mechanic then we can offer provide you with comparative quotes.
A motor trade insurance policy is taken out by a business that deals in the trading of vans,bikes and cars ( motorised vehicles). This type of cover is needed by dealer or people involved in the buying and selling vehicles,. However, it also applicable for other motor related businesses. These include running a commercial garage, repairs and service, valeting and so forth. So if you are handling other people's cars as part of your business likely you will need motor traders insurance. The policy is applicable for full or part time motor traders and business small and large. Th policy premium will reflect the size of the business, the larger the more expensive.
If as a sole trader you provide advice or provide a professional service for example, as an architect, indemnity cover will cover your legal costs and pay out compensation to the client to fix the resulting damage.
The regulatory requirements of your industry will dictate if you require PI. Typical industries that it is mandatory include, but is not limited to engineering, surveying and accountancy. In addition, professions that work on a consulting or contractual basis, such as an IT contractor or business consultants will normally only be offered work if they have professional indemnity cover in place.
Trade plates are reserved for workers within the motor trade industry. The let you drive vehicles that are in your possession for the purpose of trading or transporting. Without these you would not have insurance to drive a vehicle that you just bought without first contacting your insurance company. You can clearly see how trade plates are a must for any one working with motorcars.
To apply for trade plates complete form VTL301.
You can apply for trade licence plates for a period of 6 or 12 months. The 6 month plates are the cheapest, expect to pay a little under £100. 12 months are more cost effective , budget around £160 - £180
According to the DVLA if your application is successful, expect to wait 4 weeks before receiving your trade plates.
On completion, you will receive an email that will contain your policy details. This will send immediately after payment has nee processed. The actual hard copy will be sent via post within a few days. Some brokers will also provide a copy online for easy access.
Yes. Adding additional drivers will increase the risk and thus increase your policy premium. The amount will depend upon the new driver risk profile.
Trade policies will normally permit you to drive your own vehicles plus vehicles that you have currently in your possession for the purpose of trading. Please note some brokers may limit the vehicle categories or exclude some categories. If you are dealing in vans and cars please make sure this noted in the policy, with any restrictions on weight or size.
If you opt for a combined policy this will give you the option to include your business premises, stock, tools and cash. Again, check for restriction or limits on these.
Naturally the costs will depend on a number of factors. Below we have separated out the main factors that go towards deciding the costs of your trader policy.