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Does Motor Trade Insurance Cover Anyone to Drive the Vehicle?

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Motor trade insurance will allow the operation of any vehicle with a named driver or any driver policy.

Finding cheap motor trade insurance can be done by using an insurance quote comparison site like NimbleFins, and policies can be made more affordable by opting for a ‘named driver’ policy. These policies document all the people that have permission to operate vehicles, and as the risk is limited, the policy premiums can often be cheaper.

Larger organisations that may name each driver too restrictive can choose to purchase an ‘any driver’ policy. The insurance protection provided in this case allows anybody with the company’s permission to drive. However, as the operators are not limited, the cost of these types of policies is usually higher.

Companies that require motor trade insurance are those that deal in the sale, repair or maintenance of motor vehicles, such as:

  • Car dealerships
  • MOT inspection shops
  • Auto body shops
  • Mechanics
  • Valeters

Some businesses may operate on a mobile basis, as is frequently the case with mechanics and valeting providers. Motor trade insurance will provide coverage when moving a customer’s vehicle or test driving it to check repairs.

Can I drive under motor trader insurance without trade plates?

If you are in the business of selling, testing, or trading motor vehicles, then there may be times where you need to move an unlicensed vehicle. Trade plates are used as a way to allow you to legally operate a vehicle without the need to register each one.

Only one vehicle may be operated under trade plates at any one time, and there are rules and restrictions associated with the correct display and use of trade plates. Vehicles that are registered in your name cannot be driven under trade plates, and even though there is no need to tax and register the vehicle, it will still need to be MOT’d. The only exception to this is if the vehicle is being driven to an MOT testing centre for certification.

In the case of mobile mechanics or mobile valeting services, trade plates will be required if planning to operate a vehicle on public roads. In addition, motor trade insurance provides a number of protections for vehicle operators.

These are most commonly:

  • Road risk, Public liability, Product liability, Employers’ liability, and Material Damage.

Can I pay motor trade insurance monthly?

Most insurance policies can be paid in a single lump sum on an annual basis, which also applies to motor trade insurance. However, there may be some reasons for paying for a motor trade policy on a monthly rather than an annual basis.

There are a number of factors that can impact the cost of a motor trade insurance policy. The size of the business, number of employees, and age and vehicle-driven types will all be considered. For businesses that are changing or expanding rapidly, the level of motor trade insurance will need to be adequate enough to provide suitable protection.

Fluctuating business needs and changing requirements may mean that the motor trade insurance policy needs to be frequently adjusted. Making these kinds of changes and alterations can be more complicated with a fully paid policy. Monthly policies allow for easier policy adjustments and ad hoc changes while spreading out the cost of the policy. This can be useful for smaller businesses concerned with cash flow, helping them reduce lump sum payments.

Can you get motor trade insurance at 21?

To obtain a motor insurance policy, you will need to be involved in a business that is connected with the motor trade. Typically policies are designed to cover those who are 25 and older, leaving younger business owners with a problem. Insurers tend to regard younger drivers as a higher risk and therefore limit policies to older users.

However, some specialised insurance providers supply motor trade insurance policies to those business owners who are 21 to 25 years of age and older to provide them with coverage. Policy premiums will be more expensive than those in older age groups due to perceived risk and limited driving experience. Motor trade coverage starts around £40 – £50 per month, but it may be hard to find a competitive quote for those in younger age groups with criminal convictions or a poor driving record.

The law states that motor trade insurance is required but only to the minimum level needed to operate. Coverage can be purchased in different policy levels providing lower and higher protection to the insured.

Policies are available as:

  • Third-Party only
  • Third-Party Fire and Theft
  • Fully Comprehensive

This means that insurance can be purchased as a third party only policy and substantial savings can be gained in some cases.

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