It can be a challenge getting the right motor trade cover set up – once you do, you want to make sure it runs smoothly. Your insurance provider will consider many factors in validating your cover. If you fail to advise your insurance company of any changes to your policy, or don’t provide the correct information, you run the risk of your insurer invalidating your insurance.
If your insurance is cancelled, this could affect future quotes with other providers and could make it difficult for you to gain motor trade insurance altogether.
We’ve put together a list of ten reasons that your policy could be cancelled, and how to avoid them becoming a problem.
You didn’t give full information about your occupation
Failing to disclose any other occupation that you make income from can invalidate your cover. Cancellation can also occur if you’re a full-time trader but you choose part-time motor trade insurance, as you might find that your insurance doesn’t cover your specific needs.
How to avoid cancellation: be honest about any additional occupations you have and whether your motor trade business is your only or main source of income. If the insurer has full details, you can be sure your cover is actually valid if you have to make a claim.
You didn’t update your address
Forgetting to update your address, or failing to provide the correct address can have detrimental effects on your motor trade policy.
Your insurer will check your driving licence against your submitted address, and a licence summary is a necessary part of the documentation process.
How to avoid cancellation: Make sure you give the correct address when you take out your insurance. Many people are tempted to submit an alternative address in the hopes of a cheaper quote; however, if your insurance provider can’t validate your address, you are at risk of having any claims rejected.
You weren’t clear about where you park
The risk of damage and theft is impacted by where you park your vehicle(s) overnight, so insurance providers take this information into consideration when supplying your quote.
If you decide to park your vehicle on the street when you’ve stated that it’s kept in a locked garage, your insurance could actually be cancelled and your claim could be rejected should damage or theft take place.
How to avoid cancellation: Make sure you tell your insurer exactly where your vehicles are parked, when you take out the policy. If you want to change this, contact them first.
You didn’t produce the correct documents
Insurance providers usually require documentation within a certain time period after your insurance begins. Failing to send over the correct documents, such as your No Claims Bonus, proof of trading or your driving licence, can mean that your policy becomes invalid not long after it has begun.
Proof of trading includes receipts from sales you’ve made, or purchase receipts for a vehicle or car parts, so be sure to keep these handy when you are starting the quotation process.
How to avoid cancellation: Have all the documents you need when you get a quote, so you don’t have to worry about them after you confirm cover. If you’re not sure what’s needed, ask your insurance broker.
You didn’t disclose any CCJs
If you’ve had any county court judgements (CCJs) made against you, you’re required to disclose these when you are enquiring for motor trade insurance. Without full disclosure of CCJs, your policy will be cancelled and could be made void. A void policy is a policy that was never valid to begin with, and this can make it very hard to get motor trade insurance in the future.
How to avoid cancellation: Being honest throughout the quoting process is vital to ensure that your insurance provider can find the best policy to suit your needs, and to ensure that your cover is valid.
You didn’t provide details of a conviction
Criminal convictions can be anything from a littering fine, a speeding conviction or a penalty notice. Motoring convictions include insurance offences, careless driving offences alongside failure to follow traffic signs.
Failing to disclose any spent or unspent criminal or motoring convictions to your insurance provider will put your policy at risk of becoming invalid.
How to avoid cancellation: Be sure to disclose any convictions, whether spent or unspent, when you ask for a quote. Your broker will do their best to find you suitable cover that takes this into account.
Your additional drivers weren’t properly added to your policy
If you have a partner or spouse that you’d like to be able to also drive your vehicle(s) for personal use or commuting, asking your insurance provider to add them as an additional driver will avoid your policy being cancelled. Your partner or spouse can be added to the policy whether they are involved in the business or not.
Many factors can affect your insurance cover when adding additional drivers, so ensuring that you are honest about their age is necessary.
How to avoid cancellation: Add anyone else you want to drive your vehicle(s) onto your policy when you take it out, or as soon as you need to add them, with full and correct details. Don’t let them drive your vehicles without being on the policy.
You didn’t get covered for personal use
Motor trade cover with Tradesure covers business and pleasure use on your own stock and vehicles, but not for cars that are not owned by you. If you decide to pop to the shop in a client’s vehicle, you run the risk of your insurance becoming invalid, so ensuring that you’re covered for personal use when you’re planning to drive a vehicle is a necessity. If you have any queries about the level of cover that you currently have, speak to your insurer before setting off on your journey.
How to avoid cancellation: if you want to use your vehicles for personal use, say so when you get a quote and make sure this is included in your policy. If you’re not sure whether you’re currently covered, call your broker as soon as possible.
You weren’t up to date with your payments
It might sound quite self-explanatory, but if you decide to pay your motor trade insurance monthly rather than annually, ensuring that you meet upcoming payments on time is part of your contractual agreement. If you fall behind on payments, you can end up having your insurance cancelled.
How to avoid cancellation: If you feel as though you might not be able to meet your next payment date, speak to your insurer to see if you can mutually agree on a way to pay. Arranging this in advance could avoid your policy being cancelled.
You didn’t advise your insurer of vehicle modifications
Any modifications that take place on your vehicle, from adding parking sensors to a roof rack, should be explained to your insurer. If you are involved in an accident, or if damage or theft takes place, your claim could be rejected if you haven’t been honest about any modifications.
Failing to update your insurance provider on any modifications that you’ve performed on your van or car can lead to cancellation of your policy.
How to avoid cancellation: Let your insurer know about any modifications when you take out cover, and if you’re planning to modify a vehicle, contact them in advance to find out what effect this may have on your insurance.
We hope that these ten tips will help you avoid cancellation on your insurance policy. If you have any queries regarding your motor trade insurance, get in touch!