Trade Plate Insurance

Compare Trade Plate Insurance

Quotes from UK insurance providers
One short form – save time & money

Policies and deals from industry leading insurance providers, including

Find Insurance for Trade Plates

Trade plates are an invaluable tool for many motor trade businesses. They allow the company to move vehicles from one location to another without having to register or tax them. However, trade plates do not exclude you from needing vehicle insurance.

Trade plate insurance is a specialised policy that covers vehicles while they’re using trade plates. This cover can be included in some motor trade insurance policies, but it rarely comes as standard.

Trade plate coverage can be essential for your business. Protecting you and your company against liability claims, accidents, and unexpected events.

Compare trade plate insurance quotes now

What are trade plates?

Trade plates allow people in the motor trade industry to legally drive vehicles that are unregistered and untaxed. They save you from having to sort out tax and ownership for cars that are only in your care for a short time. This can help car dealerships and other motor trade businesses save time, money, and hassle.

Why do I need trade plates insurance?

Motor trade plates grant exemptions for road tax and vehicle registration. However, you are not exempt from needing insurance. While these plates can only be used in certain situations, they are tightly regulated. So you’ll still need trade plate insurance before you can legally drive a car with trade plates on public roads.

Who needs insurance for trade plates?

This insurance is useful among many motor trade businesses that need to drive vehicles that are temporarily in the care of their business. This includes:

Car dealers

Vehicle testers

Scrap or salvage business

Business that collects or delivers vehicles

Mechanics

Vehicle Import or export companies

Auction houses

Logistics companies

See all the rules and restrictions on using trade plates in the UK

How to get trade plates

You can only get trade plates from the DVLA (Driver and Vehicle Licensing Agency). To apply, you’ll need to be a registered company and give the DVLA your Companies House registration number. You’ll also need proof of public liability insurance and your motortrade certificate.

Your insurer will need to know the details of any vehicle trade plates you have so they can be passed on to the Motor Insurance Database (MID). In most cases, your provider will do this for you but it’s worth double checking this.

The rules around trade plates are strict and anyone found misusing them could face a £5,000 fine or even a jail sentence.

You can find more information on how to apply for trade plates in the UK here.

How much is trade plate insurance?

There is no way to give an accurate answer to this as the cost varies depending on your business and the level of coverage you need. But you can get an idea of how much it might cost you by considering the various factors that insurers use to set your premiums. Factors that affect the cost of your trade plate insurance can include:

The type of business you have

The services you provide

How many employees you have

You and your employees’ driving history and age

Your business location

The level of coverage you want

The insurer you choose

Your claims history

What risks does trade plate insurance cover?

Trade plate insurance offers the same coverage levels as standard motor insurance.

If your motor trade insurance includes trade plate cover as standard, it’s possible this might be third party only. In this case, you’d only be covered against the cost of damage to a third party’s vehicle or property.

However, most insurance providers also offer the option to upgrade your cover to third-party, fire and theft, or fully comprehensive. This would mean the vehicle you’re driving could also be protected.

To learn more about trade plates, read our comprehensive UK trade plates guide here.

How can I get cheaper trade plate insurance?

Trade plates are a cost-effective option for your motor trade business. So it makes sense not to lose those savings by overpaying for trade plate insurance. Some things you can do to get potentially cheaper trade plate insurance include:

Decide on the level of coverage you need 

Like with other vehicle insurances, you have the options of third party, third party fire and theft, or comprehensive insurance. Knowing which option your business needs means you won’t overspend on coverage you don’t need.

Be proactive in protecting against claims 

Risk assessments and management measures are not only good business practices, but they let insurers know that you are less of a risk to insure.

Build a no claims discount 

This one can help you save money in the long run. In the meantime, you can check if your insurer lets you transfer your personal no claims history to your trade plate policy.

Pay your premium annually 

If you can afford to, paying your premium annually rather than monthly usually comes with a discount from insurers.  

Choose higher excess 

These can reduce premium costs. But they still need to be amounts you are willing and able to pay when you make a claim. 

Compare quotes from various insurers 

Comparing quotes can ensure you are not paying over the odds for your insurance. They can help you find cheaper prices you wouldn’t otherwise be aware of.