How to get Motor Trade Insurance For Under 25s
Finding Motor Trade Insurance under the age of 25 can be tricky - here’s what you need to know if you’re thinking of taking out a motor trade policy.
If you buy and sell cars, or run any form of business that involves cars, motorbikes, or vans, then you will need some form of Motor Trade Insurance. Ordinarily, Motor Trade Insurance is pretty easy to come by for adults over the age of 25, but for younger entrepreneurs, it can be a little trickier. If you’re under the age of 25 and are trying to secure yourself Motor Trade Insurance, then here’s what you need to know.
What is motor trade insurance?
Motor Trade Insurance, also sometimes referred to as Road Risk Insurance, is a legal requirement for anyone with a business in the Motor Trade industry. This includes buying and selling cars, valeting or running a repair workshop - it doesn’t matter how big your business is, whether you work part-time or full-time, or how many people you employ, you need some form of Motor Trade Insurance to cover you in the event of an accident while driving your own or a client’s vehicle.
Motor insurance cover options
There are a number of different motor insurance policies available depending on the cover you need and also the hours you work. In general, Motor Trade Insurance with convictions can be broken down into two main categories, Road Risk Insurance to protect you, your vehicles, and your customers when on the road, and Business Premises Insurance to cover your buildings, tools, and equipment. Get a better understanding and see more information. Road Risk Motor Trade Insurance can be purchased alone or it can combined with additional policies, such as Public Liability Insurance or Business Premises Insurance, depending on your needs. The main kinds of Motor Trade Insurance are listed below.
Third-party cover
By law, a third-party policy is the lowest level of Motor Trade Insurance that a trader can have. With a third-party policy, anyone who is named on the policy is permitted to drive any vehicle in relation to their policy and is also covered for damage to any third-party vehicles.
Third-party fire and theft
Third-party fire and theft is the next step up from simple third-party insurance and also covers you for loss or damage to vehicles within your policy as well as fire or theft.
Comprehensive
Fully comprehensive Motor Trade Insurance covers everything mentioned in the third-party fire and theft, but also includes cover for accidental damage to any vehicle that you, the trader, own, or have responsibility for.
Liability Insurance
Motor Trade Liability Insurance includes public liability, employer’s liability, and sales and service indemnity. Employer’s liability insurance covers you if any of your employees are injured while working for you. Public liability insurance covers you if a member of the public is injured or sustains damage to their property, and sales and service indemnity covers you for accidental damage to any property.
Combined Motor Trade Insurance
If you’re looking for maximum coverage, then combined Motor Trade Insurance includes road risk insurance, liability, and business premises insurance to protect you both at home and on your business premises.
Why is so much harder to get cheap Motor Trade Insurance as an under 25?
It is notoriously difficult for young drivers to get any form of motor insurance and Motor Trade Insurance is no different particularly with convictions . The problem for young drivers is that statistics do not lie, and sadly the statistics say that people under the age of 25 are involved in and cause more accidents than any other age group. For this reason, insurance providers ofter charge astronomical prices, and many also include additional caveats in terms of age and experience. Here at Trader’s Insurance, we believe that your age should not stop you from getting the insurance you need to run your business, which is why we are committed to helping under 25s secure Motor Trade Insurance.
What can help you be accepted for a Motor Trade Insurance policy?
Although we believe that age should not be a decisive factor, sadly, it still is, and many insurance providers refuse to offer Motor Trade Insurance to anyone below 23. That being said, there are still ways to secure affordable Motor Trade Insurance at a young age - here are some things that can help you.
1: Have at least two years of driving experience
Two years of driving experience can dramatically increase your chances of being accepted for a Motor Trade Insurance policy as it proves that you are a more experienced driver.
2: Take an advanced driving course
In addition to having your regular driving licence, an advanced driving course proves to insurance underwriters that you have the skills needed to keep yourself and other drivers safe on the road.
3: Keep your licence clean
A history of other convictions or driving penalties will work against you with any insurance policy. To increase your chance of acceptance, try to keep your licence and criminal record clean.
4: Install telematics, dashboard cams, and use driving apps
And lastly, offering to use telematics, dashboard cams, or monitored driving apps can also help to bring down the cost of your insurance as a young driver.
Dealing with exceptions on your Motor Trade Insurance policy
Sadly, even with experience, a clean licence and additional monitoring software, being under 25 still mean that you will likely have exclusions on your insurance policy. This may mean that you cannot drive any vehicle and are excluded from high-value, powerful, or large vehicles for the first few years. Although this can be frustrating, having a foot in the door with Motor Trade Insurance so that you can prove your safe driving history is far better than having no cover at all.
How do we help young drivers get Motor Trade Insurance
Here at Traders Insurance, we are passionate about helping more traders access the insurance they need to run their business without paying above market rate. We compare all of the major insurers and encourage them to play off against one another to find you the best deal. Whether you’re 21 or have been in the Motor Trade industry for many year’s we know how to find our client’s the cheapest insurance deals and can help to send you on your way.