The truth behind six motor trade insurance myths

Finding the best insurance policy at the most competitive price is important; however, all too often, customers are taken in by the following myths. It is always best to be guided by specialists in the sector.

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Leaving some drivers off your quote will make it cheaper

Although this can sometimes be true, it is not recommended. As an employer, it is important to have the correct cover for anyone who is driving your vehicles – whether they are paid or unpaid – both in terms of the law and in the event that you need to make a claim.

Part-time motor traders can get cheaper insurance quotes

You may find that your quotation is no cheaper than a full-time trader’s would be; in addition, there may be an opportunity to get business use cover for another occupation.

You will get a better quotation by using your home address

The quote may vary depending on how high risk the area is considered to be; however, it is wise to include both your business and your home address so that you get the cover you need. If you are in doubt, contact a broker such as for clarification.

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Your cover on your motor trade quotation will include driving any vehicle

You can be covered to drive any vehicle that is in your care or that is owned or registered by you for motor trade uses.

You do not need to include vehicles that are rarely used on your quote

Although leaving off vehicles that are rarely used can appear tempting, this would mean they are not covered. This could incur a fine of up to £5,000 and cause the vehicle to be seized if it is recognised by an ANPR system, with damage or loss not covered if it was involved in an accident or other incident.

It is also important to remove a vehicle from the database as soon as you sell it; otherwise, you could be liable for third-party damages. This is easy to do online. According to the government website, you get instant confirmation that the records have been updated.

You cannot transfer your personal no claims discount to a motor trade quotation

A private no claims discount can be used for a new policy; however, it cannot be transferred.


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