Buying trade coverage can be challenging. Further to this, some untrue but commonly held beliefs make it harder. The consequences of having the wrong policy is severe. Recently we read about a trader banned from driving, thinking they had coverage, when they didn’t! Mistakes such as these are costly and can be avoided.
Traders Insurance is a complex product, and not everybody knows the ins and outs. Here we are clarifying details about this type of coverage. We are aiming to end some of these myths.
You Can’t Get Trade Agreements Under 25
It is possible to get coverage for under 25s, but it may be more expensive. Like with personal car agreements young people will struggle to get great value. Whether it is for yourself, or for an employee, don’t give up too soon!
Some young traders choose to go into business with a partner. This is certainly one way to reduce costs. While this can be a solution, starting a partnership is a long term commitment. It is certainly not a decision to be taken lightly. By talking to a broker you may be able to find an underwriter who will cover you, as a sole-trader.
When trying to find coverage for an employee, we recommend getting multiple quotes. With a price in mind, a company director can assess benefits. They can weigh up having the member of staff using the vehicles, against the additional cost of a premium.
We think it is important to bust this myth and help more young people succeed in this sector.
You Can’t Get Insurance With A Criminal Record
Fair access to those with prior conviction has been a hot topic. In 2013 there was a change in the law so that unspent convictions typically no longer need to be declared. For ex-offenders this is good news. Formerly discrimination for this segment of society has been rife.
There are underwriters who understand that mistakes happen. For those who have been prosecuted by the justice system it is still possible to access coverage. There are specialist brokers who work to find a suitable match for any aspiring entrepreneur.
With Motor Trade Insurance I Can Drive Any Vehicle
It can result in a ban. This is a dangerous assumption and it is important to be clear on policy wording. There are a number of questions that traders can ask themselves before turning the key.
Is it valid for SDP usage? Do I need to update my details? Unfortunately ignorance is not a mitigating circumstance for driving without a policy.
Motoring Business Insurance Will Cover Anyone Driving A Vehicle On My Policy
Unfortunately this is another very dangerous myth. It is frustrating for the policy holder, but imagine the shock for the person who suddenly discovers they were without insurance. But further to this did you know you can also be prosecuted to lending a vehicle to an uninsured friend.
You may be able to get your wife, and your staff insured, but it is dangerous to make presumptions.
Car Dealing Insurance Is Too Expensive
Trading without coverage is not practical and particularly risky. Without it you will not reasonably be able to conduct business professionally. E.g. unable to offer test drives
It is a myth that is too expensive. Because of the protection it offers, it is good value.
It is also a competitive marketplace with a wide range of underwriters able to quote. This reduces the costs. Brokers would be delighted to help personally to bust this myth. offer a free and independent advice service to help vehicle trade customers to find the best value cover.
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