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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.

What Is Auto Trader Insurance?

What is Auto Trader Insurance

An Auto Trader insurance policy covers a variety of aspects including the sale of vehicles and their servicing, car valeters, motor mechanics, breakdown services, and more.

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Working as an Auto Trader involves certain risks. Among these are your stock sustaining damaged or being stolen. It’s possible that while transporting vehicles or out on a test drive, you could be involved in an accident. There is always that chance that a member of your staff or a customer could sustain injury while on your premises.

Sometimes, folks will take out Auto Trader insurance in an attempt to get themselves cover so that they may drive any vehicle. Remember, you must be a genuine Auto Trader, whether it be full or part time, to qualify for this type of cover. Most insurance companies will require proof of this before issuing you an Auto Traders insurance policy.

Cover is available for salvage, scrap, and vehicle dismantles and for both full and part-time. Your Auto Trader Insurance policy can also cover prestige vehicle, sport cars, and import vehicle dealerships to protect vehicles while at trade premises.

What are the Different Types of Cover that are available on an Auto Trader insurance policy?

Traders Insurance

If you work as an Auto Trader, you will need Road Risks insurance as a minimum. This will cover you as you drive not only vehicles that you own, but customer’s vehicles that have been left in your ‘custody and control’ as well.

In addition to this basic level of cover, you will need to consider whether or not to add combined insurance elements to your Auto Traders insurance policy. This combined insurance will bring together Road Risk insurance with several different options. If by chance you own the premises that you do business from, you may wish to insure it along with any of the fittings, machinery, tools, or vehicles that are left on site. There is also business interruption cover, which is designed to keep your business in operation in the unfortunate event that something should happen to your stock or premises.

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Vehicle Exclusions Your Auto Traders insurance policy will exclude certain types of vehicles. Make sure that the policy you decide to take out will cover the vehicles you are dealing in.


Trading from Premises Auto Trader Road Risk insurance will not cover against damage or loss of vehicles kept at your business premises. If you require this type of cover, additional Premises Cover may be needed. That said, most insurance companies don’t class your home address as business premises.


Vehicle Values Most often, claims that are paid under an Auto Trader insurance policy are made at the current trade value of the vehicle(s). Because of this, you may find yourself falling short if you had paid full retail for the vehicle.


Additional Occupations If by chance you do your auto trading part-time, and another trade is your full-time job, (builder, construction worker) your Auto Trader insurance most often will not cover you to use vehicles in connection with this other trade. An extension to your policy is usually needed.


Cover and Benefits It’s important to remember that most Auto Trader insurance policies don’t provide the types of benefits that are normally associated with typical car insurance. Examples of this would be protected no claims bonus, courtesy vehicles, and wind screen cover.

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