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Cover Note versus Certificate of Motor Insurance

Cover Note versus Certificate of Motor Insurance

The Cover Note is the first official document you will receive from your insurance company or broker to show your vehicle is compliant with the law of insuring your vehicle. This is a temporary document issued to cover you as you wait for your full motor trade insurance policy.  With this document, you can legally operate your vehicle on roads in the UK.

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Why was a Cover Note issued instead of my Certificate of Motor Insurance?

The receiving of the Cover Note is proof the premium on the insurance policy has been paid and allows for the vehicle being covered to be legally driven on UK roads immediately. Your insurance agent or broker just assumes the details you have provided are truthful and accurate so you will have immediate coverage.

The delay of issuing the Certificate of Motor Insurance is so the information being provided can be checked for accuracy. This process is called Trust with Verification so the client can drive where they need to without the worries of not having their vehicle insured.

If any of the information or documents being provided fail verification or are found to be false it could cause the Cover Note to be invalidated by the insurance company 

How long is a Cover Note valid for?

The process of verifying all the documents a client submits can take up to 30 days on average. This can include the driver's license check, No Claims Discount verified, background check for criminal convictions and ownership of the vehicle to name a few. Other factors involved in the time needed for the verification process include the type of vehicle to be covered, the level of insurance coverage and how the vehicle is going to be used.

Due to that verification process, the average Cover Note is valid for those 30 days so the verification process can occur and be completed. Once the verification process is completed and the Certificate of Motor Insurance is issued, the Cover Note becomes invalid.

Motor Certificate Information

In accordance with vehicle regulation rules 1972 all certificates of motor insurance must be in black and white and contain the following as a minimum: 

  • Persons that are entitled to drive
  • Policyholder name plus policy holder provider ( insurance company)
  • Vehicle registration
  • Class of use
  • Start date and end date of policy/
  • Certificate Number
  • Level of cover third party, third party with fire and theft  or comprehensive.

Not all insurance brokers will issue a cover note as most can now quickly generate an online copy of your Most big named brokers brokersmotor insurance, Aviva motor trade insurance, Tradex  and  Tradewise motor insurance being two examples/

Cover Note Information

If a cover note is issued, it will contain the same information as detailed above in the motor insurance policy. Start comparing the costs of full and part time motor trade insurance, by selecting the blue Get Quotes button below.

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Starting a Motor Trade Business When You’re under 25

Starting a Motor Trade Business When You’re under 25

Starting a motor trade business when you’re under 25 is possible, but there are a few restrictions and qualification required. If you decide to proceed make sure you have under 25 traders insurance that provides comprehensive cover. To help those of you interested in this business sector we have created this helpful resource page.

What are the qualifications to legally open and operate a Motor Trade Business in the UK?

  • Each owner has had to have a UK driver’s license for a minimum of 1 year prior to opening a motor trade business.
  • Because of the above qualification UK citizens must be at minimum of 18 years of age.
  • EU Driver’s licenses holder can open a motor trade business after having residency in the UK for a minimum of 3 years.
  • Because of the above qualification EU citizens must be at minimum of 21 years of age.

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Why does the motor trade insurance cost more for owners under the age of 25?

  • Drivers under the age of 25 are classified as high risk so the premiums are higher.
  • The highest premiums are for owners 21 year of age and younger. Not all insurance companies will offer this type of insurance.
  • Owners 22 and 23 years of age are the next highest costs for premiums again due to the elevated risks associated with drivers of those ages.
  • If even one employee is under the age of 25, the costs of the premium are higher due to the associated higher risk factor.

What types of vehicles can a person under the age of 25 sell and still have motor trade insurance coverage?

  • Small inexpensive vehicles with small displacement engines.
  • Small cars used by families equipped with security devices.
  • Customer vehicles that are only being repaired.

An owner of the motor trade company under the age of 25 cannot be covered for all types of vehicles due to the high risk factors.

What vehicles cannot be covered?

  • Luxury vehicles.
  • Vehicles with large engine displacement.
  • Sports cars.
  • Exotic cars.
  • Race cars.
  • Most large trucks and lorries

Who would not be approved for a motor trade insurance policy?

  • Anyone with a history of making excessive claims on other insurance policies.
  • Anyone with a criminal conviction.

How can you reduce the cost of your premiums?

  • Make no claims and get a no claim bonus upon renewal of the policy.
  • Hire staff that is over the age of 25.
  • Have security devices on the premises that can include CCTV cameras and security lights.
  • Hire staff that has good driving records

This helpful resource page can assist you on who can be covered and what can be covered when you are starting a Motor Trade Business when you’re under 25 years of age. If you have any questions or wish to take out a policy our friendly insurance brokers can assist you in finding the right coverage for your business in a budget you can afford.

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Steps to Take After an Accident for Motor Trade Businesses

Steps to Take After a Road Accident 

It is vitally important that the right steps to take after an accident for Motor Trade Businesses are followed. As a motor trade business owner, you and your staff must be made aware of the steps to ensure coverage under your trader insurance policy will be accepted. Failure to do so could cause the claim to be rejected by your insurance company.

At the scene of the accident if someone is injured

  • Stop the vehicle.
  • Check for injuries in your vehicle and the other vehicle involved.
  • If someone is injured call an ambulance and the police immediately.
  • Look around for possible witnesses that can be interviewed by the police.
  • Take pictures of the scene and record any interaction with the other driver and its vehicle occupants.
  • Keep the conversation with the other driver and the other occupants to a minimum.
  • With the police are called, be prepared to take a breath test for the presence of alcohol.
  • Exchange insurance information with the other driver that has to include their name, address, telephone number, insurance company and policy of the other vehicles coverage.

At the scene if no one is injured 

  • Stop the vehicle.
  • Check for injuries in your vehicle and the other vehicle involved.
  • When no injuries are found find the driver of the other vehicle.
  • Exchange insurance information with the other driver that has to include their name, address, telephone number, insurance company and policy of the other vehicles coverage.
  • Have your cell phone or other device and take pictures of the scene.
  • If you have a dash cam involved make sure the file does not become corrupted.
  • If possible during the exchange of insurance information have your cell phone record it.
  • Keep the conversation with the other driver and the other occupants to a minimum.
  • Look around for any possible witness and get their personal information like name and phone number and ask it they are willing to make a statement. If they say yes record it.
  • If the driver of the other vehicle is not being cooperative, call the police for assistance.
  • The next step is to get the vehicle back to your place of business, either by driving it or calling a tow truck.

Contact your insurance company 

  • Contact your insurance company as soon as possible.
  • In each policy there is a time limit for reporting an accident and making a claim. Failure to do so in the allotted time can cause thee claim to be rejected.
  • Turn over all evidence you gathered at the scene includes the dash cam file if present, any video or audio recording that were made, all of the pictures taken.
  • Provide your insurance company with the contact information of any witnesses.
  • Make a statement to your insurance company about what occurred in the accident, especially if it was not your fault.

Failure to proceed with the steps to take after an accident for motor trade businesses could cause your claim to be rejected and make you financially responsible for any damages, medical bills and legal fees associated with the accident.

What Is Auto Trader Insurance?

Auto Traders Insurance

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  • Part time traders cover for all business types
  • All occupations form Car Trader to Valeter's
  • Employers/Public Liability Insurance
  • Sole Trader Insurance
  • Flexible Payments and Online Documentation
  • Combined Insurance Policies Available

What is Autotrader Insurance

An auto trader insurance policy covers a variety of aspects including the sale of vehicles and their servicing, car valeters, motor mechanics, breakdown services, and more. Both part time traders insurance  and full time cover is available.

Working as an auto-trader involves certain risks. Among these are your stock sustaining damage or being stolen. It’s possible that while transporting vehicles or out on a test drive, you could be involved in an accident. There is always that chance that a member of your staff or a customer could sustain injury while on your premises.

Sometimes, folks will take out auto trader insurance in an attempt to get themselves cover so that they may drive any vehicle. Remember, you must be a genuine trader, whether it be full or part time, to qualify for this type of cover. Most insurance companies will require proof of this before issuing you a traders policy.

Cover is available for salvage, scrap, and vehicle dismantles and for both full and part-time. Your insurance policy can also cover prestige vehicles, sport cars, and import vehicle dealerships to protect vehicles while at trade premises.

What are the Different Types of Cover that are available on an Auto Trader insurance policy?

If you work as an auto trader, you will need

 as a minimum. This will cover you as you drive not only vehicles that you own, but customer’s vehicles that have been left in your ‘custody and control’ as well.

Traders Insurance

In addition to this basic level of cover, you will need to consider whether or not to add combined insurance elements to your auto traders insurance policy. This combined insurance will bring together road risk insurance with several different options. If by chance you own the premises that you do business from, you may wish to insure it along with any of the fittings, machinery, tools, or vehicles that are left on site. There is also business interruption cover, which is designed to keep your business in operation in the unfortunate event that something should happen to your stock or premises.

Vehicle Exclusions your auto traders insurance policy will exclude certain types of vehicles. Make sure that the policy you decide to take out will cover the vehicles you are dealing in.

Trading from premises road risk insurance will not cover against damage or loss of vehicles kept at your business premises. If you require this type of cover, additional Premises Cover may be needed. That said, most insurance companies don’t class your home address as business premises.

Additional Occupations If by chance you do your auto trading part-time, and another trade is your full-time job, (builder, construction worker) your auto trader insurance most often will not cover you to use vehicles in connection with this other trade. An extension to your policy is usually needed.

Cover and Benefits It’s important to remember that most policies don’t provide the types of benefits that are normally associated with typical car insurance. Examples of this would be protected no claims bonus, courtesy vehicles, and wind screen cover.

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