Is motor trade insurance a legal requirement?
Vehicle insurance is a legal requirement. Motor trade insurance is recommended to anyone running a business in the motor trade. This applies to mechanics, dealers, vehicle valeters or any similar businesses and both full-time and part-time businesses need to take out cover.
Can I drive a car that has trade insurance?
The short answer to the question, can I drive a car on traders insurance, is no. Unless you have a motor trade business, you will not qualify for a traders insurance and cannot drive vehicles that are not registered in your name. However, having a traders insurance is not the same as your personal car insurance.
What happens to insurance when you trade in a car?
If you have purchased another vehicle by trading your old car into a dealership, you can simply ask your insurance company to transfer your old policy to your new car. This avoids any cancellation fees and ensures that you are covered in the event of an accident.
Can you drive an uninsured car on trade plates?
To summarise, yes you can drive an uninsured vehicle that was uninsured prior to you driving the vehicle, which is now insured because your motor trade insurance policy details that it is.
Why do I need motor trade insurance?
Motor trade insurance covers businesses to work on and drive their customers’ vehicle and vehicles the company owns. Even if you don’t have to drive your customers’ cars, you will still need some form of motor trade insurance cover to protect you against accidental damage or other risks that arise from your work.
What is a trade insurance policy?
Motor trade insurance covers businesses to work on and drive their customers’ vehicle and vehicles the company owns. That cover may extend to just the business owner, certain members of the team or everyone who works for the business.
Do I still pay insurance if I sell my car?
The short answer to this question is a long as the car is no longer registered in your name, then yes, you no longer need insurance for it. Once you have sold it, you’re no longer required by law to have the car insured so you can crack on and cancel it.
Can trade plates be used for personal use?
As described above, trade plates are strictly for motor trade business use only. You can only use them on one vehicle at a time, and you can’t keep a vehicle on the road if it is not in use (unless it has broken down, for example).
Can a trader drive a car without tax?
Are There Other Ways A Trader Can Drive A Car Without Paying Tax? The only other way you may not pay tax immediately on a vehicle is if it’s still at the dealership on order. Trading plates are the simplest way to hold many cars temporarily without paying tax on all cars – albeit the one you are using.