Motor Trade Insurance for Under 25s
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Compare motor trade insurance quotes for under 25 year olds
Motortrade Insurance Quotes for Under 25 Year Olds
If you’re involved in the motor trade industry and you’re under the age of 25, it’s highly likely that you’ll need a motor trade insurance policy to ensure safe operations. As with other types of motor insurance policies, you may struggle to get cheaper coverage due to your younger driver. However there are providers that specialise in providing motor trade coverage to those over 25 at a reasonable price. Some insurers may place age restrictions on their motor trade policy so it pays to look around to find the policy that works for you.
Your best approach would be to kickstart your decision-making process by comparing quotes from a diverse range of insurance providers. Take into account the specific trade insurance policies tailored for the motor trade sector, and also explore the array of additional features that can be included. Once you’ve gained a comprehensive understanding of the available policies, opt for the provider that not only offers the necessary motor trade insurance elements but also does so at the most competitive rate for your age bracket – That’s where we can help.
What is motor trade insurance?
Motor trade insurance, alternatively referred to as trade insurance, traders’ insurance, or car dealer insurance, encompasses a range of insurance provisions tailored for individuals operating within the automotive industry. This specialized insurance safeguards both your customers’ vehicles and your own, providing coverage that standard car insurance policies cannot match.
In the context of servicing a customer’s vehicle, you take on the responsibility and obligation of its care. As a result, it is highly advisable for motor traders to secure specialized coverage that shields against potential costs arising from accidents or damages during these operations. This form of coverage can be likened to a distinct variant of public liability insurance exclusively tailored for the motor trade sector. In insurance terms, any venture engaged in profit-generating activities within the motor trade domain qualifies as a motor trade business.
Whether you are seeking motor trade insurance for a fledgling enterprise or an established firm, these policies are meticulously crafted to cater to businesses where personnel engage in driving or handling vehicles, both on and off the road, that are not owned by the business itself. This aspect is often referred to in the traders’ insurance sphere as the concept of having ‘care, custody, or control’ over another individual’s vehicle.
However, it is important to note that motor trade insurance, also known as trade insurance, traders’ insurance, or car dealer insurance, is not confined to a single uniform policy. Instead, it comprises an amalgamation of policies intricately bundled together to furnish your automotive business with precisely the level of protection it requires.
What types of businesses need motor trade insurance?
If you work with third party vehicles for a living then the chances are you’ll need a good motor trade insurance policy. Here are some of the types of businesses that benefit from having a good motor trade insurance policy.
- Car dealers
- Valeting or car detailing businesses
- Breakdown and recovery firms
- Scrap dealers
- Car restoration businesses
- Car parking or car jockey services (at airports, for example)
- Garages offering repairs, MOTs or services
- Bodyshop repair garages
If you’re under the age of 25 there may be some restrictions placed on your policy by some insurers. However their are providers in the UK who specialise in motor insurance for under 25 year olds.
What does traders insurance cover?
There are many risks that a motor trader may face and a motor trade policy is in place to protect you and the business from the following risks.
- Road risk insurance – This will insure you to drive your customers’ cars as well as cars owned by your own business. You can choose from:
- Third party only – if you’re driving other people’s cars then, by law, you must have third party road risk at the very least. It covers the cost of damage done to other cars and property if you cause an accident. It will also cover the cost of compensation if you injure someone. However, it’s important to realise that it doesn’t cover damage to the car you’re driving. This is sometimes the cheapest level of cover.
- Third party, fire and theft – gives you the same cover as third party only, plus you’re also covered if a car in your care, custody or control is stolen or damaged by fire.
- Comprehensive cover – as well as covering damage or injury to third parties, it also pays for repairs to the car you are driving – this could be a customer’s car or a car owned by your business. As you’d expect, this is sometimes the most expensive level of cover.
- Liability insurance – this covers legal fees and compensation if someone decides to make a claim against you. There are lots of different types of liability insurance but the policies you’re most likely to need include:
- Employers’ liability – if you employ anyone then you’ll need this by law. It covers you if an employee is injured while working for you. If you employ staff but don’t have this insurance you could be fined £2,500 every day you go without it.
- Product liability – covers you if someone takes you to court because of a faulty product. For example, if a customer sued you for fitting a faulty part that damaged their car this insurance could protect you.
- Public liability – covers the cost if a member of the public has an accident because of your business; if a customer trips and falls on your forecourt, for instance.
- Combined insurance – this covers you for both road risk and liability. For an extra fee you can also protect your tools, equipment and workplace.
What doesn’t motor trade insurance cover?
Numerous motor trader insurance plans exclusively provide coverage for vehicles intended for business use. Therefore, if you utilize a company car for personal activities, your insurance may not apply unless you’ve included ‘domestic use’ in your policy. Operating a business vehicle for personal reasons without the necessary supplementary coverage could potentially invalidate your motor trade insurance as well.
What else can I get cover for?
You will be able to tailor your coverage to your needs so there is a lot of flexibility in terms of what you are actually able to cover. Here are some of the typical add-ons that can be included in your motor trade policy.
- Material damage cover – covers stock or equipment you own, for example unsold cars in your showroom.
- Business premises cover – protects the building or forecourt you work from.
- Demonstration cover – insures demo cars that are taken out for test drives; usually only offers third party cover.
- Specialist vehicle cover – most trade policies only cover standard vehicles under a certain weight. If you work with heavy goods vehicles, vintage cars or exclusive sports cars then you might need a specialist policy.
- European cover – covers you if you’re driving cars or lorries across the continent.
- Goods in transit cover – protects any goods you transport as part of your business operations.
- Parts only – if you don’t need to drive your customers’ cars then a ‘parts only’ policy might be more suitable – and cheaper.
Do I need motor trade insurance if I’m self-employed or part-time?
Absolutely, regardless of the scale of your business, if you’re involved in working with vehicles owned by others, having motor trade insurance is a necessity.
Nevertheless, if you are self-employed and run your business on a part-time basis from your home, you have the option to purchase part-time motor trade insurance. This choice could offer a more cost-effective solution compared to obtaining a comprehensive annual insurance policy.
According to data analysis conducted by Quotezone.co.uk on 100,000 motor trade policies, the industry has displayed remarkable resilience despite the disruptions caused by the pandemic. Notably, there has been a 35% year-on-year growth in policies for full-time motor trade businesses and a 24% increase in policies for part-time businesses. The study also revealed a significant 47% surge in insurance policies for motor traders operating from dedicated garages. Interestingly, home-based motor traders also experienced a 22% increase in policies in recent years. Furthermore, there has been an impressive 113% year-on-year rise in mobile mechanics obtaining insurance for their sole traderships.
While some potential motor traders might be hesitant about acquiring motor trade coverage, potentially perceiving it as an unnecessary expense, the statistics mentioned above underscore the industry’s robustness despite recent economic challenges. For individuals contemplating a venture into self-employment or part-time motor trading, it’s essential to recognize that investing in insurance could be a modest cost for participating in such a resilient sector.
How do I find cheap motor trade insurance quotes?
There are some practical steps that can be taken to reduce the costs of your motor trade insurance premiums. There are many varying factors which influence the price of your premiums so you should consider the following when taking out an insurance policy.
- The nature of your business – for example, if you work part-time from home selling one or two cars at a time you might only need third party road risk cover rather than a full-featured motor trade insurance policy. On the other hand, if you own a business premises and have several cars then a combined policy is more likely to give you all-round protection.
- How many cars you need to cover – trade insurance policies that cover an unlimited number of cars are going to be much more expensive than those with a limit.
- The type of vehicles you work with – buy a policy that reflects the cars you actually work with. Insurance covering ‘any vehicle’ including lorries and specialist cars are going to cost much more than policies that cover ‘standard vehicles’.
- How many drivers you need to insure – traders insurance policies that insure ‘any driver’ will set you back more than one that only covers a couple of named drivers. To lower costs even more, make sure the employees you do insure have clean driving records and are older than 25.
- Improving security – a secure garage, CCTV or gated forecourt can all help to lower your premiums.
- Paying for cover upfront – monthly instalments might feel like the cheaper option, but with admin fees and interest it could add a few extra pounds to your premium.
- Transferring your no claims bonus – some insurers will let you transfer your personal no claims bonus to your motor trade insurance policy, which can help to cut costs.
- Increasing your voluntary excess – agreeing to a higher excess on your motor trade insurance can help to lower premiums, but make sure you can still afford it because you’ll need to pay the excess before a claim can proceed.
Regardless of your age, the simplest and fastest way for you to find the right motor trade insurance quote for you is to use an unbiased insurance comparison website like Quotezone.co.uk.
We have compiled a large panel of UK based specialist providers, making it easier for you to find the right cover for under 25 year olds.