Commercial and Motor Trade Insurance

Q. Do I need a Motor Trade Insurance policy?

A. If you are trading vehicles, buying and selling them on a part time or even full time basis then you will need a motor trade insurance policy. If you are repairing or servicing other people’s vehicles, where you have a customer’s vehicle in your care, custody or control for the purpose you will need a Motor Trade Insurance policy. Most likely in these circumstances you will be looking for a Road Risk Insurance policy. With a road risk insurance policy you can test vehicles on the road, collect or deliver a vehicle before and after repairing it, service, valet, MOT test it and carry out other work on the vehicle with the security you are covered in the case of an accident.

Q. What types of vehicles can be covered under my Motor Trade Insurance policy?

A. At Tradesure, we can insure the private car driven by the policyholder or the policyholder’s spouse where they are a names driver on the policy. Employee vehicles are excluded from the policy.

Regarding vehicles themselves it is clearer to explain what we can’t cover. These include:

Traditionally motorcycles will be excluded but they can be added for an additional premium.

Q. Is there any person in the motor trade business that you don’t cover?

A. We cover a wide range of motor trade occupations. We offer bespoke policies to suit your needs. However there are always occupations that can be challenging to quote for, for instance, if you’re involved in the scrap and salvage or vehicles, or vehicle repossessions, but we will always look at each quote on an individual basis.

Q. What’s the youngest driver you can add on to a policy?

A. The youngest driver that can be added to a policy is 25 years of age usually.

Q. Do I need to provide you with a copy of my driver’s licence and copies for the named drivers on the policy?

A. Yes you will need to provide us with a copy of your driver’s licence and for any other drivers insured on the policy. You will need to provide proof of the front and back of your photo drivers licence as well as a DVLA share code so that we can get a print-out of your driver’s licence and confirm what you are entitled to drive.

The reason we request this information is to protect you and others within the motor trade industry from those who seek to be fraudulent.

Q. Do I need to tell you about all the vehicles in my possession?

A. You need to declare all vehicles that are in your care or are sale stock at the start and renewal of your insurance. You are also legally required to tell us about all taxed vehicles used on the road – the only exception being where a vehicle is not held for more than 14 days.

During the course of the policy, any vehicle which you have owned for more than 14 days needs to be declare on the Motor Insurance Database (MID). For more information on the MID click here.

Q. Who is covered on my motor trade insurance policy?

A. Coverage is for the main policyholder and all named drivers, providing they are a company partner or director, an employee or your husband/wife.

Q. Are my employees covered for private use or in their own vehicle?

A. No. Motor trade insurance does not cover and employees’ own vehicle. This is his/hers responsibility to insure this separately. Usually an employee is only covered to drive vehicles for motor trade use only.

Q. Are the vehicles covered at my home or business premises?

A. If you work from home, that address is defined as your business premises for cover. A dedicated business premises will require an extra premium for cover.

Q. Will you still insure me if I work part time in the motor trade but full time in another occupation?

A. Yes. A motor trade policy isn’t just applicable for full time traders. If you are part time, but able to prove you are running a valid part time business as a motor trade, we are happy to offer you a motor trade insurance policy. We may also be able to offer you additional business use to cover your main occupation dependent on what that may be. Give us a call on 0121 248 9300 for more information.

Q. Can I let my customers test drive the vehicles before they purchase from me?

A. Providing a named driver accompanies the customer during the test drive, demonstration cover is provided as per your policy agreement. This is an optional extra if you request this. There is an additional premium for this, which if paid for provides this type of cover.

Q. Are there any restrictions that apply on how a vehicle is used when it is being driven under a motor trade insurance policy?

A. There will be restrictions but this is dependent on the policy. As our policies are bespoke to the policy holder there is no set rule for what restrictions apply. Certain restrictions which could apply would be motor trade use only, social domestic pleasure and commuting, additional business use. The best thing to do is to look at the Cover Note or your Certification of Insurance as it will details what restrictions apply.

One restriction in place for all motor trade insurance policies is that the customer’s vehicle must only be used for motor trade purposes. You cannot use their vehicle for anything else, even to nip to the shops to top up the milk and teabags.

Q. What’s the maximum amount of vehicles I am allowed to insure on the policy?

A. There is no restriction on the amount of vehicles you can own but you will be asked what will be the maximum of any one vehicle. If you drive a vehicle worth more than this you will only be paid out the maximum you declared at the start of your policy. This can be increased at any time during your policy so call us if this is the case.

Q. Can I pay for my motor trade insurance by instalments?

A. Yes you can. For more information visit out payment options page.

Q. What No Claims Bonus (NCB) do you offer?

A. With Tradesure Motor Trade Insurance, we can transfer your NCB from a private motor policy, motor trade policy or commercial vehicle policy up to 50% after five years. In the event of one fault claim, only two years’ NCB will be lost.

Q. How much will I be paid if the vehicle is a write off?

A. As this is a motor trader policy, you will be paid the trade price for the vehicle less the policy excess.

Q. Can I get immediate cover over the phone?

A. Yes with Tradesure Motor Trade Insurance, we can provide immediate cover over the phone once payment has been setup (or paid in full if preferred).

Q. Am I covered for towing a caravan?

A. Yes you are automatically covered third party only to tow a caravan for pleasure use. If you need to tow a caravan for any type of business activity you would need to refer to us beforehand.

Q. Do you insure motor traders in Northern Ireland?

A. Unfortunately we aren’t able to cover motor traders from Northern Ireland.

Q. Who is covered on my policy?

A. Coverage is for the main policyholder and all named drivers, providing they are a company partner or director, an employee or your husband/wife.

Q. Is there any person in the motor trade business that you don’t cover?

A. We cover everybody in the motor trade except those involved in scrap and salvage and repossession.

Q. Are my employees covered for private use or in their own vehicle?

A. No they are not. They will need to insure these vehicles themselves.

Q. Can I add Motorbikes on to my policy?

A. As long as you have held a full UK bike licence for at least 12 months we can usually add these on, but not all our insurers will allow this. Call us to confirm.

Q. Are the vehicles covered at my home or business premises?

A. If you work from home, that address is defined as your business premises for cover. A dedicated business premises will require an extra premium for cover.

Q. Do I need to tell you about all the vehicles in my possession?

A. You need to declare all vehicles that are in your care or are sale stock at the start and renewal of your insurance. You are also legally required to tell us about all taxed vehicles used on the road – the only exception being where a vehicle is not held for more than 14 days.

Q. Can I let my customers test drive the vehicles before they purchase from me?

A. Providing a named driver accompanies the customer during the test drive, demonstration cover is provided as per your policy agreement.

Q. What No Claims Bonus (NCB) do you offer?

A. With Tradesure Motor Trade Insurance, we can transfer your NCB from a private motor policy, motor trade policy or commercial vehicle policy up to 50% after five years. In the event of one fault claim, only two years’ NCB will be lost.

Q. How much will I be paid if the vehicle is a write off?

A. As this is a motor trader policy, you will be paid the trade price for the vehicle less the policy excess.

Q. Do I need to let you know if there are any changes to my business?

A. Yes you will need to. Any changes to your circumstances could affect your policy and premium, so you must contact us to keep us updated. For example, this could be a change of address, or getting a motoring conviction.

Q. Do I need to tell you if I have a new vehicle?

A. Yes you will need to advise us of any new purchase within 14 days of purchase so it can be added on the MID. If you update the MID yourself then you do not need to inform us.

Q. How do I notify you of any vehicles that I have bought or sold?

A. The best thing to do is to update the vehicles online as this is available 24 hours of the day, however if you would like us to update your MID you can call us 0121 246 7070 during office hours.

Q. Am I able to drive the vehicles on my policy for private use?

A. No, only your own personal vehicles are covered for social, domestic and pleasure use. Any customer vehicle is for motor trade use only.

Q. Can I change the level of cover that my motor trade insurance policy provides during the insurance period with you?

A. Yes you can make changes to the policy at any time.

Q. The MID isn’t recognising my vehicle details when I update it. Why?

A. Sometimes the MID struggles with older vehicles due to the documentation. Or if a private plate has been put on recently, the DVLA may not have updated the system at that moment. Feel free to call the team here who will assist.

Q. Will you update the MID on my behalf? Does this cost anything?

A. Yes we will and it costs you nothing, although you will only be able to contact us during office hours.

Q. Is windscreen cover provided on my motor trade insurance policy?

A. Generally not, due to the amount of vehicles that come and go, motor trade insurance policies tend to exclude this. However we may be able to find an insurance company to help if you feel it is important to you.

Q. What is the difference between a cover note and a certificate of motor insurance?

A. A cover note is a temporary insurance document which usually lasts for 30 days. It assists with putting you on cover. A full certificate is your full annual insurance document which should be used once received in replacement of the cover note.

Q. What happens if I have a claim?

A. If you have a claim you need to contact our claims handler who have a 24 hours claims helpline to assist. For more information click here.

Q. If I have any convictions during my insurance policy, do I need to notify you?

A. Yes you will need to notify us of any criminal or motor convictions as soon as possible. If you do not, this could invalidate your motor trade insurance policy.

Q. What is my obligation to register or remove vehicles from the MID, and how do I go about doing this?

A. You must ensure that the MID is kept up to date. You have 14 days to register vehicles which you must comply to. For more information about the MID click here.

Q. Can you cover me driving abroad?

A. We can cover you to drive anywhere in the European Union (EU) in your own personal vehicle. This would be for social, domestic and pleasure use only and you would need to advice us of this before you go on your journey. We cannot extend the policy to include motor trade activities abroad, and your policy does not cover non-UK registered vehicles.

Q. What is proof of trading?

A. At any time you could be asked to provide proof of trading to confirm you are running as a motor trader. Proof of trading should be in the form of the following documents:

  • Copies of purchase invoices and sales receipts for vehicles bought or sold
  • Auction House invoices and Auction House Membership
  • Proof of joint bank account for business partnerships
  • Copies of any invoices and receipts for part or work carried out on any customers vehicles
  • Submission of Accounts

Q. What documents do you need from me?

A. We would need:

  • proof of no claims bonus
  • copy of driving licence
  • DVLA share code

Q. What is Continuous Insurance Enforcement (CIE)?

A. Continuous Insurance Enforcement (CIE) is an additional compliance and enforcement approach to reduce the number of uninsured drivers. Premiums are affects when an uninsured driver has an accident and with this it is extremely important these individuals are stopped.

It is an offence to use a vehicle without insurance. From 2011, it has been an offence to keep a vehicle without motor insurance unless it has been declared as SORN – Statutory Off Road Notification.

Under CIE, the registered keeper of a vehicle will be sent an Insurance Advisory Letter (IAL) if it appears that the vehicle has no insurance. The letter will set out what options the registered keeper can take to comply with CIE. If the registered keeper still fails to comply, their details will automatically be sent to the DVLA for enforcement action.

Q. What is the CIE penalty for not having insurance?

A. If you fail to have the correct cover for a vehicle you will be given a fixed penalty of £100 which can be reduced to £50 if paid within 21 days of issuing of the fixed penalty. The vehicle in question can also be seized and even disposed of whilst the owner could find themselves in court with a maximum penalty of up to £1,000.

Q. I am a Motor Trader how does CIE affect me?

A. Vehicles that are registered as being ‘in trade’ with the DVLA are excluded from CIE. This means that motor traders have up to 90 days before they need to register themselves as the keeper of the vehicles if they haven’t sold them or disposed of them in that time. They will need to ensure by this point that the vehicles are made SORN or insure them.

Q. Are there any vehicles exempt from CIE?

A. Yes, vehicles exempt under certain Sections of the Road Traffic Act (RTA) 1988 are not included within the CIE arrangements and are identified by the vehicle register system codes.

  • vehicle has a valid SORN
  • vehicle that was exempted from SORN (as untaxed before 31/01/1998 and has had no tax or SORN activity since)
  • vehicle recorded as ‘scrapped’
  • vehicle recorded as ‘stolen and not recovered’
  • vehicle recorded as ‘disposed to the trade’
  • vehicle recorded as ‘disposed’
  • vehicle recorded as ‘exported’ (includes all forms of export)
  • vehicle is owned by the crown, to be identified by tax class (60)

Q. I am a motor trader, why have I received an IAL /FPN (Fixed Penalty Notice)?

A. This is because you are recorded as the registered keeper(s) for the vehicle(s) and there is no record of insurance for this/these vehicles or a valid SORN, as detailed above.

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