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Archive Monthly Archives: November 2018

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Starting a Motor Trade Business When You’re under 25

Starting a Motor Trade Business When You’re under 25

Starting a Motor Trade Business when you’re under 25 is possible, but there are a few restrictions and qualification required. If you decide to proceed make sure you have under 25's trader insurance that provides comprehensive cover.To help those of you interested in this business sector we have created this helpful resource page.

What are the qualifications to legally open and operate a Motor Trade Business in the UK?

  • Each owner has had to have a UK driver’s license for a minimum of 1 year prior to opening a motor trade business.
  • Because of the above qualification UK citizens must be at minimum of 18 years of age.
  • EU Driver’s licenses holder can open a motor trade business after having residency in the UK for a minimum of 3 years.
  • Because of the above qualification EU citizens must be at minimum of 21 years of age.

Why does the motor trade insurance cost more for owners under the age of 25?

  • Drivers under the age of 25 are classified as high risk so the premiums are higher.
  • The highest premiums are for owners 21 year of age and younger. Not all insurance companies will offer this type of insurance.
  • Owners 22 and 23 years of age are the next highest costs for premiums again due to the elevated risks associated with drivers of those ages.
  • If even one employee is under the age of 25, the costs of the premium are higher due to the associated higher risk factor.

What types of vehicles can a person under the age of 25 sell and still have motor trade insurance coverage?

  • Small inexpensive vehicles with small displacement engines.
  • Small cars used by families equipped with security devices.
  • Customer vehicles that are only being repaired.

An owner of the motor trade company under the age of 25 cannot be covered for all types of vehicles due to the high risk factors.

What vehicles cannot be covered?

  • Luxury vehicles.
  • Vehicles with large engine displacement.
  • Sports cars.
  • Exotic cars.
  • Race cars.
  • Most large trucks and lorries

Who would not be approved for a motor trade insurance policy?

  • Anyone with a history of making excessive claims on other insurance policies.
  • Anyone with a criminal conviction.

How can you reduce the cost of your premiums?

  • Make no claims and get a no claim bonus upon renewal of the policy.
  • Hire staff that is over the age of 25.
  • Have security devices on the premises that can include CCTV cameras and security lights.
  • Hire staff that has good driving records

This helpful resource page can assist you on who can be covered and what can be covered when you are starting a Motor Trade Business when you’re under 25 years of age. If you have any questions or wish to take out a policy our friendly insurance brokers can assist you in finding the right coverage for your business in a budget you can afford.

car accident

Steps to Take After an Accident for Motor Trade Businesses

Steps to Take After a Road Accident 

It is vitally important that the right steps to take after an accident for Motor Trade Businesses are followed. As a motor trade business owner, you and your staff must be made aware of the steps to ensure coverage under your trader insurance policy will be accepted. Failure to do so could cause the claim to be rejected by your insurance company.

At the scene of the accident if someone is injured

  • Stop the vehicle.
  • Check for injuries in your vehicle and the other vehicle involved.
  • If someone is injured call an ambulance and the police immediately.
  • Look around for possible witnesses that can be interviewed by the police.
  • Take pictures of the scene and record any interaction with the other driver and its vehicle occupants.
  • Keep the conversation with the other driver and the other occupants to a minimum.
  • With the police are called, be prepared to take a breath test for the presence of alcohol.
  • Exchange insurance information with the other driver that has to include their name, address, telephone number, insurance company and policy of the other vehicles coverage.

At the scene if no one in injured 

  • Stop the vehicle.
  • Check for injuries in your vehicle and the other vehicle involved.
  • When no injuries are found find the driver of the other vehicle.
  • Exchange insurance information with the other driver that has to include their name, address, telephone number, insurance company and policy of the other vehicles coverage.
  • Have your cell phone or other device and take pictures of the scene.
  • If you have a dash cam involved make sure the file does not become corrupted.
  • If possible during the exchange of insurance information have your cell phone record it.
  • Keep the conversation with the other driver and the other occupants to a minimum.
  • Look around for any possible witness and get their personal information like name and phone number and ask it they are willing to make a statement. If they say yes record it.
  • If the driver of the other vehicle is not being cooperative, call the police for assistance.

At the scene if no one in injured 

  • The next step is to get the vehicle back to your place of business, either by driving it or calling a tow truck.

Contact your insurance company 

  • Contact your insurance company as soon as possible.
  • In each policy there is a time limit for reporting an accident and making a claim. Failure to do so in the allotted time can cause thee claim to be rejected.
  • Turn over all evidence you gathered at the scene includes the dash cam file if present, any video or audio recording that were made, all of the pictures taken.
  • Provide your insurance company with the contact information of any witnesses.
  • Make a statement to your insurance company about what occurred in the accident, especially if it was not your fault.

Failure to proceed with the steps to take after an accident for motor trade businesses could cause your claim to be rejected and make you financially responsible for any damages, medical bills and legal fees associated with the accident.