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What are the Regulations for Motor Trade Insurance?

Motor trade insurance can be complicated, as insurance policies and motor trade businesses all differ from one another. Not having the right type of insurance can have a detrimental effect on your motor trade business, especially if you’re involved in an accident. 

Whether you own your own garage or are in charge of a car valet service, there are particular motor trade regulations you need to abide by.

What is the law for motor trade insurance?

As a motor trader, driving other people’s vehicles (as well as your own) is an inevitable part of your business enterprise. Therefore, you’re required by law to have valid motor trade insurance.

It is worth noting that the law only obliges you to have basic third party only motor trade insurance. This type of trade insurance policy ensures you are covered for driving customer vehicles on the road.

Not only is it illegal to drive with an invalid policy, but if it’s proven that an accident occurred with invalid motor trade insurance, you may be subject to large legal costs too.

Does age have an effect?

Young drivers are statistically found to be at higher risk of being involved in a crash than older drivers. The road safety charity Brake found that 23% of 18-24 year olds are said to crash in the first two years after they passed their driving test.

Because of this, motor trade insurance for under 25s can be harder to obtain. At Road Runner Insurance, our minimum age for taking out a motor trade insurance policy is 23.

Who can drive on a motor trade Insurance policy?

A motor trade insurance policy can be valid for the named driver(s) to drive any vehicles you own, or are in your custody, care and control for your motor trade business. The law views unnamed motor trader drivers in the same way as driving without insurance.

However, there are also ‘any employee’ motor trade policy options too. 

If you have any new motor trade employees, it’s your responsibility as an employer to get them added to your motor trade insurance policy as soon as possible.

Unsure whether you’ve got the right cover? Get in contact with us today, and we’ll be happy to help!

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

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