Am I a legitimate motor trader?
Getting a motor trade policy requires proof that you are working in the motor trade.
Most traders start off buying and selling cars – but how many do you have to trade to get a motor trade policy?
And if you’re servicing or repairing cars, providing a valeting service or fitting tyres, how do you prove the work that you’re doing?
Is there a minimum level of work in the motor trade required to get a motor trade policy?
Read on to find out the answers.
What is motor trade work?
Any job that involves buying and selling vehicles, transporting them as a business (e.g. recovery operators, vehicle transporters taking cars to and from showrooms etc.), servicing them or repairing them, is a motor trade business.
There are a host of occupations in the motor trade, with everything from ‘one-man-band’ operations buying and selling cars through eBay or Auto Trader through to service and repair garages, MOT stations, classic car restoration, valeters, tyre fitters, mobile mechanics, auto-electricians…
You name it, and if it involves working on or with vehicles, it’s most likely a motor trade occupation!
If you don’t carry out motor trade work, then Bollington can still offer private car insurance at competitive prices. Call us for more information.
You don’t have to work full-time in the motor trade to get a motor trade policy
The first myth is that you need to work full-time in the motor trade.
While you do have to carry out work in the trade to get motor trade insurance, it doesn’t have to be your main job.
Most motor traders that Bollington insure buy and sell vehicles as a secondary occupation. This is fine – in many cases, we can help you to insure your main vehicle for business use (e.g. if you work in the building trade and drive a commercial van as your main job).
However, part-time traders must be able to prove that they are trading a sufficient number of vehicles to warrant needing a motor trade policy. If you only very occasionally buy and sell vehicles, then a motor trade policy isn’t for you.
Likewise, if you just service the odd vehicle from your garage at home to help out friends or family, you’re not likely to need a full motor trade insurance policy.
How many vehicles do I need to sell to get a motor trade policy?
When trading vehicles, you will need to be buying and selling a minimum number during the term of the policy to qualify for a policy. Usually, you must be trading at least 2 or more vehicles a month to qualify for a policy.
If you’ve been trading for any length of time – for example, you have built up motor trade no-claims bonus – then you will have a history of buying and selling vehicles. In these cases, you will need proof of trade to obtain a policy with Bollington.
What proof do you need?
We will need purchase receipts and sales receipts wherever possible – whether that’s for vehicles you’ve traded, parts you have purchased for service or repair, receipts issued to customers for valeting work etc.
Talk to us if you’re unsure what proof is required before getting a quote for a motor trade policy.
What if I’m just starting up and don’t know how many cars I’ll be dealing with?
Speak to us and tell us what your plans are. We do have insurance available for new businesses. Though it often helps your chances of getting a policy if you’ve worked in the motor trade before, we recognise that everybody starts somewhere, so let us know your circumstances and we’ll help you decide what policy is best for you.
What about ‘family fleets’?
This term is used to describe all the vehicles belonging to a family – for example, two parents, their two sons, their daughter and their cousins all have separate cars and want to insure them. Can you get motor trade insurance to cover the family’s vehicles in one policy?
The answer is, of course, no. The vehicles are for private use only and not for buying and selling in connection with a business. It’s another myth that a ‘family fleet’ policy exists – the nearest thing to it is multi-car insurance from a private car insurer, which can help you to save money when insuring multiple vehicles in one household.
I’m a legitimate trader – so how do I get motor trade insurance?
Call the experts in motor trade insurance at Bollington on 01625 854458. Tell us about your business and we’ll see if we can find a policy to suit your needs.