Motor trade insurance simply covers any activities undertaken by people and businesses working in the trade. These activities could include service and repair work, vehicle sales, restoration, or transportation. Any activity involving making a profit in the motor trade requires traders’ insurance.
What does trading mean in insurance?
Trade credit insurance provides cover for businesses if customers who owe money for products or services do not pay their debts, or pay them later than the payment terms dictate.
Do you need insurance to trade?
Buying and selling cars for profit
Even if you only sell a few cars each year to make a profit, you need a traders’ insurance policy to stay road legal. That’s because running a motor trade business requires the vehicles in your possession to be insured.
What is motor trader?
They buy and sell new and used cars and usually have a forecourt where members of the public can view the vehicles. Since dealerships have their own premises, numerous members of staff and a large number of vehicles on their forecourt, they’re usually recommended to get a combined motor trade insurance policy.
How does Trader insurance work? – Related Questions
Can anyone drive a car with traders insurance?
The motor trade policy you need to drive vehicles is called road risks cover. While the cover provided for driving is similar, it is designed for motor trade businesses. This means that you can: Drive cars that you don’t own.
Can anyone be a car trader?
Better still, it’s completely free to try for yourself. To become a successful car trader, you don’t need to be a petrolhead. But you do need to know how to strike a deal, recognise a bargain when you see one, and understand exactly what your target market is after.
How do I become a car trader?
To obtain an authorisation, you must apply to your VRT Control Officer and: show you intend to be actively engaged in the trade. have suitable business premises. be registered for Value-Added Tax (VAT)
Authorisation of motor traders
- manufacture.
- distribute.
- deal-in.
- deliver.
- store.
- repair or modify.
How do I become a part time motor trader?
How to become a motor trader
- GET TO KNOW THE MOTOR TRADE INDUSTRY.
- UNDERSTAND THE LEGAL REQUIREMENTS.
- APPLY FOR TRADE PLATES.
- BUY A CAR TO SELL.
- FIGURE OUT YOUR PRICING.
- MARKET YOUR MOTOR TRADE BUSINESS.
- HAVE QUESTIONS?
What is motor trade policy?
A motor trade insurance, also known as road risk insurance, is a policy designed to cover any injury, loss or damage to the third-party caused by the vehicles involved in the business.
What is a trade vehicle?
The vehicle was sold to a genuine ‘Dealer’ with access to a ‘Trade Auction Site’ who is in business purchasing cars which are then resold for profit. The vehicle therefore is likely to have been ‘sold as seen’ to the Dealer.
Do trade plates cover insurance?
It is important to note that trade plates do not cover insurance in and of themselves. If you are looking for quality trade plate vehicle delivery insurance, look no further.
What is the law on trade plates?
You can only use trade plates on vehicles that: are safe to drive (‘roadworthy’) are insured. have a valid MOT, or are exempt from needing an MOT.
Can trade plates be traced?
There’s no direct link between the trade number plates and the specific vehicle they’re being used on at the time, although the number on the trade plates can be traced directly back to the individual or company they have been issued to in the first place. Why are Trade Plates Needed?
Can you carry passengers on trade plates?
Trade plates should not be used on a vehicle that is carrying passengers for hire and reward as the purposes for a trade licence being issued does not allow passengers to be carried on a commercial or personal basis.
Can you drive on someone elses trade plates?
As described above, trade plates are strictly for motor trade business use only. You can only use them on one vehicle at a time, and you can’t keep a vehicle on the road if it is not in use (unless it has broken down, for example).
How many trade plates can I have?
A dealer can have as many trade plates as they can show a need for, as long as the conditions are met.
Do you need tax with trade plates?
Trade plates bypass the need to tax each vehicle temporarily in your possession. However, you will still need to tax brand new vehicles or second-hand cars already registered in your name—you can’t use trade plates on these.
How long are trade plates valid for?
All trade licences expire on either 30 June or 31 December. You cannot get a licence for less than 6 months or more than 12 months at a time (from the month you apply). This means, when you apply for your first licence, it will last for between 6 and 12 months, depending on when you apply.