Young Motor Traders’ Insurance

We’re here to help young entrepreneurs in the motor trade industry get the perfect insurance coverage for their business. We provide expert advice and guidance to make sure you’re well-prepared. Then, we connect with top insurance providers to find you the best possible quote. We’ve got your back!

But we do need to be honest, achieving a motor trade policy as a young person is extremely tough and probably won’t come cheap. As like with car insurance, premiums are higher for young people.

What is young motor traders’ insurance?

Young trader insurance is tailor-made for people under 25 who are diving into the motor trade world. Being under 25 can make finding the right insurance a bit tricky, and the premiums can be a tad higher than those for our older counterparts.

But don’t worry, young motor trade insurance has your back. It not only safeguards the vehicles you work with but also provides personal protection. You’ll get road risk insurance, which lets you drive customer vehicles.

Just keep in mind that there might be some age-related restrictions with a young trader policy. But no worries, we’ll help you navigate those too!

What cover options are available for Young Motor Traders?

Here are the main types of insurance available for young motor traders:

  • Road Risk Insurance: This covers you when you’re driving customer vehicles.
  • Motor Trade Insurance: This protects your premises, customers, and employees.
  • Motor Trade Combined: This is a specialised policy tailored to your business needs after you’ve been trading for at least one year.

Who can get motor trade insurance?

Getting motor trade insurance when you’re under 25 can be a bit tough. You’ve got to think about everything in your business and how it works. The most important insurance you need is called Road Risk Insurance. But there are other policies to think about, too. These might cover things like your workspace, tools, and employees, and the cover available also depends on the service you’re offering. It’s all about making sure you have the right amount of insurance to protect your business properly.

Buying and selling cars requires a specific type of motor trade policy and cover will depend on which age category you fall into:

Young Trader Insurance Under 21’s

If you’re a young motor trader under 21, it can be tough to find motor trade insurance. Our suggestion is to first gain experience by working in your chosen field before thinking about starting your own business. This experience can make it easier to get the insurance you need in the future.

Trade Insurance for 21 to 23 Year Olds

If you’re a young motor trader between 21 and 23, getting insurance might work a bit differently for you. Your insurance will depend on your real-world experience in things like fixing cars, servicing them, and changing tires. If you have gained a few years of valuable experience then you’ll need something called ‘Road Risk Insurance,’ which is there to protect you when you’re driving or working on your customers’ cars.But here’s the thing: if you’re planning on buying and selling cars at this age, getting motor trade cover won’t be possible.

Motor Trade Insurance for 23 to 25 Year Olds

Motor traders 23 and older are eligible to take out motor trade insurance which allows for the buying and selling of vehicles. At 23 you are also able to take out the following cover: business premises, public liability and employer liability insurance.

Why is Motor Trade Insurance Expensive for Under 25’s?

Insurance companies are increasingly concerned about the higher likelihood of road traffic accidents among younger drivers. This concern is compounded by the fact that young individuals often use vehicles as part of their jobs in the motor trade industry.

Additionally, individuals in this profession are responsible for handling customer vehicles, which introduces a unique risk due to the variation in vehicle sizes, transmissions, and engine sizes.

Unlike individual car insurance policies, there is no effective way to demonstrate good driving performance in this context, as telematic devices can’t be easily transferred between different vehicles.

Factors Affecting Motor Trade Insurance for Under 25’s?

Years of Driving Experience

If you’re a young driver with not much experience, it can be tough to get trader’s insurance. In the future, transferring any no-claims bonus and showing a clear insurance history on personal vehicles can help when looking to take out your first motor trade policy. Our advice would be to build up a history of safe driving by having a clear record of insurance on your personal cars, it’s all about showing that you’re a responsible driver.

Criminal Convictions

Criminal convictions, driving or otherwise can prevent you from taking our motor trade insurance and other business related insurance.

Previously Working for Someone Else

If you’re under 25, getting Motor Trade Insurance will be a struggle. So, it’s a smart move to gain some experience in the industry first before thinking about going alone. You can do this by taking on apprenticeships, work placements, or jobs in the field. The key is to show insurance companies that you know your stuff in the specific areas of the motor trade you want to work in.

Reduce Risk

Your motor trade insurance costs can vary based on what you do in the business. For instance, buying and selling vehicles can make your premiums go up. So, when you’re just starting, it’s a good idea to focus on services that don’t require a lot of time on the road. This can help you save money on insurance.

How do I get Young Motor Traders Insurance?

Getting motor trade insurance as a young person can be a bit tricky, but don’t worry! We’re here to make it easier for you. At Nash Warren, we have a team of experts who specialise in motor trade insurance. They’ll take care of the hard work so you don’t have to.

Our goal is to guide you on the right path and show you how to lower your risk, which can lead to more affordable premiums down the road. If you’re interested in making your business thrive, give our team a call today at 0330 053 5110. Let us assist you in growing your business!

  • Competitive, tailor-made quotations
  • Friendly, knowledgeable staff
  • Specialist insurance schemes & discounts
  • Established for over 30 years