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Traders Policies - Insurance


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Insurance is starting to be a bit of a pain as I want to swap from one vehicle to another then to another within a short space of time, I also want to have 3 cars (well 1 car and 2 land rovers!) insured at the same time,

I've been wondering if a traders policy is possible and if it would be helpful or more of a pain, had a bit of a search around and can't find that much info - but I am tired!

I do tend to swap cars a bit, and now that my company car is going back I'll probably have 3 or 4 cars a year plus the LR.

So is anything like this possible?

I had a quick look at Admiral Multicar but the price for the three current cars is nearly double the price to have individual insurance for them.

Anyone had any luck - if it helps and has to be done through a company, I have a couple although neither are really related to the motor trade.

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I think the problem would be when/if you want to use your vehicle to comute to a non automotive trade related job. You should be in the motor trade as you main profession I believe.

I have a motortrade policy & wouldn't want to be without one. But I do have a few Range Rovers, a van & drive other vehicles.

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I am a private person and haven't had a problem getting a trade policy.

My best quote for the last two years has been from Bollington Motortrade Brokers.

It makes life dead easy for jumping in and out of different cars and being able to drive them :)

Regards

Gordon

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IMHO

Motor Trade Insurance policies:

  • I know for some trade policies you have to state that you are engaged in the sale or motor vehicles as a part time profession. If you say you are and your not, then you may invalidate your policy. The insurers are quite at liberty to ask for proof of your profession (Im sure they would consider if a claim was presented)
  • With most you get the trade price of the vehicle if its a loss situation (which you as a trader would be OK with, as you buy at trade prices) - worth remembering if you are driving your mate's car.
  • A lot of these policies dont include windscreen cover
  • More restricions are being placed on policy holders as it was often a good way to get back uninsured cars from the compound
  • You have to put any vehicles on in your posession for more than 14 days onto the MID (Motor Insurance Database) so they dont appear as unisured on Police ANPR cameras
  • In many cases you 'have' to be driving other vehicles (not on your policy) in connection with your motor trade or business (ie road testing/delivering etc) as in not just nipping down the shops (which would be the case if you had your own vehicle and had used the 14 day rule)
  • Not all traders policies offer the same benefits as personal polices (ie legal cover etc)

If you knowingly take out a traders policy and are economical with the truth (or dont read the small print) you could be looked at quite closely under the Fraud Act whihc has a lot more power since it was updated.

You can check your policy details on Ask MID

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A couple of my mates have insurance with this - http://www.tradexinsurance.co.uk/products/default.asp?category=356

Ian

I'll try them and see what they come back with.

@Nic - thanks for that it helps clear up some points, I would only do it if I was happy it was legal and correct.

If it's worthwhile and a saving could be made it may be worth me doing a little business for it, but I'd need to know how many vehicles need to be sold per year to make it a valid business. I have family who live close who also frequently change their cars so maybe that could be included as one large traders policy - then buy and sell through the company??

Can you include a permant car owned by yourself/spouse on a traders policy? Or are they all expected to be cars which will be sold on?

My idea would be to set up a little sole trader company buying/selling cars. I would then want to put 4 people on teh policy along with 5 to 7 cars to start with. 3 of those cars would be our own cars if that's allowed 2 to 4 would then be rotated on quite a frequent basis - going between a minimum of 2 to a maximum of 4 we would perhaps go through 10+ cars per year. - these 2 - 4 cars although for sale would also have to be used for our jobs

Obviously this would bring a few tax implications but the idea would be to not make much money but rather to gain free motoring.

So that would be the idea - does that sound legal before I start phoning round for quotes?

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I am a part time motor trader and have a trader's policy, my wife is also on the policy, she also has a full time job. We operate from home, have my Landrover, SWMBO's car and two motorbikes listed on the policy as owned vehicles and have one or two more in trade at any time. I used a broker called 'Stavely-Head' but as with all insurance, you should shop around. I was advised by a friend in the trade that Tradex can be 'difficult'.

My policy allows me to drive any car owned by me or in my possession for motor trade purposes. There is a limit on the car's worth - 10k in my case I think - and a limit as to the cumulative value of cars in my possession of £20k. Of course, any car which I drive which does not belong to me I am test driving with a view to buying. I am also insured for any other driver when on a test drive.

Trade valuation only in the event of a total loss and no windscreen cover.

HTH

Chris

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IMHO

Motor Trade Insurance policies:

  • I know for some trade policies you have to state that you are engaged in the sale or motor vehicles as a part time profession. If you say you are and your not, then you may invalidate your policy. The insurers are quite at liberty to ask for proof of your profession (Im sure they would consider if a claim was presented)
  • With most you get the trade price of the vehicle if its a loss situation (which you as a trader would be OK with, as you buy at trade prices) - worth remembering if you are driving your mate's car.
  • A lot of these policies dont include windscreen cover
  • More restricions are being placed on policy holders as it was often a good way to get back uninsured cars from the compound
  • You have to put any vehicles on in your posession for more than 14 days onto the MID (Motor Insurance Database) so they dont appear as unisured on Police ANPR cameras
  • In many cases you 'have' to be driving other vehicles (not on your policy) in connection with your motor trade or business (ie road testing/delivering etc) as in not just nipping down the shops (which would be the case if you had your own vehicle and had used the 14 day rule)
  • Not all traders policies offer the same benefits as personal polices (ie legal cover etc)

If you knowingly take out a traders policy and are economical with the truth (or dont read the small print) you could be looked at quite closely under the Fraud Act whihc has a lot more power since it was updated.

You can check your policy details on Ask MID

I'm sorry but i guess the last 3 companies that have insured me over the years have been different to what you know !

You refer to :

* Being involved in the motor trade

On my policy i state that i have a full time job and it is totally unrelated to the motor industry. I am down as private and use my own name with home address.

* Trade price

Yes i agree

* Windscreen cover

I get that, with a £50 excess. There is a clause about if your main business is selling vehicles then you cannot claim for a vehicle for sale (or something along those lines)

* Restrictions

That's to be expected, no worse off than a privately owned vehicle with private insurance though.

* Updating insurance register

That's hardly a problem, some companies let you do it online

* Driving for a purpose

My policy does not state this

* Benefits

Ok, you might not get hire car etc... But if you're taking out a traders policy are these things relevant ?

For what it's worth, i was involved in an RTA in June 2008 - where another vehicle was written off. I was insured through by a trade policy then, and their solicitors are still fighting for me. They know full well that it is not my full time occupation and have no issues about that.

My bike is also covered by my trade policy. Unfortunately my trailer isn't and has to be done another way.

Keep everything above the table and you'll be fine :)

RE : Tradex - i got a quote from them and it scared me :(

Regards

Gordon

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There is some great info their, sounds like I need to do some phoning around next week.

How does NCB work with traders policies?

I guess you get one lot? ie if I put my wifes car on as well and have her able to drive any of the cars then she won't be earning ncb? Is that right?

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I had a Trade policy until recently. I stated that I was "part time" only, and that my involvement was acident repairs,and MOT preparation and repairs. I had two vehicles of

my own, two belonging to friends left with me to repair, get MOT'd and sell on their

behalf, plus other "needs MOT, can you take it and fix it" jobs. I felt that I was making sure I was covered for driving these vehicles. The policy covered "any vehicle in the policy holders custody or under his control", for Social, Domestic and Pleasure use, and business use by me in connection with the motor trade. It also covered me for driving a two car car transporter.

However, the initial premium was £450 which I thought was pretty resonable, but after three years it suddenly jumped to over £900! and no claims made. As the need for this policy was reducing, I only renewed once at this price. My two vehicles are now insured independently, those wanting MOT's have to take them themselves unless their insurance covers me.

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I used Norton insurance when I had my traders policy. Very easy people to deal with.

You need to make sure you have cover for road risk and while parked at your address.

When I went back to a private policy I couldn't find a company that would honour my no claims discount. They took my driving record into account but I had to start again with 0% ncd.

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I have a basic tradex policy Fully comp £567

I may own up to 6 vehicles each with a value of up to £16000 , one of these is my winch challenge vehicle, after giving them a description they had to go back to their "underwriters ?" and check before confirming cover.

I may drive customers vehicles up to a value of £25000.

on my terms and conditions it specifically notes that the policy does not cover retrieving vehicles from police compounds.

My insurance broker tells me that tradex are one are the more basic policies.

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