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Motor insurance trade

There is no such thing as an instant insurance quote for car traders.

This is partly because everyone and every business is different, and partly because there is far more at risk for the Insurance Company when they issue a car traders policy because the policyholder will necessarily be driving so many different cars and models. So, just as your possible insurers will need to know much more about you and your business, you will most probably need to make enquiries with other companies to see if you are eligible.

And eligibility really is the crux of the matter as far as car and motor traders insurance is concerned: It isn't so much about how much the policy costs, but much more about whether the insurance company will accept YOU and insure you as a trader! You should be under no illusions about that when you apply, even though you may see all sorts of ads off and online for that type of insurance.

All the above sounds rather gloomy and really only applies to people who are applying for a car traders insurance policy for the first time, as anyone seeking a renewal or a more competitive quote will find that changing to another insurer is a doddle, providing they have had little or no claims in the past.

For first time applicants though the vetting procedure is more thorough and will include questions like these below, all of which are crucial to your successful application:

  • Age: Most insurers like you to be at least 23 years of age.
  • Whether or not you have a current Motor Trade Policy.
  • How many years have you been involved in the motor trade? This Q can catch you out so you may need to review your CV before answering.
  • Will you be a sole trader, a Partnership or a LTD Company? Partners who may also be insured will come under scrutiny here.
  • How many drivers will you want to be insured? At some stage they will also need to be named so that the insurers can make a fully informed decision.
  • One of the last questions is all about the risks you expect your prospective car traders insurers to face, such as:
  • Do you require a road risks policy, road risks with liability or a combined road risks policy?

Last update: 24.06.2016