Trader Insurance - Under 25 Cover Available

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Traders Insurance

For owners in the motor trade business who have employees that are under the age of 25 there is a special insurance policy you need to protect yourself and your business. This is motor trade insurance made specific for the business owner with younger employees.

The cost of Motor Trade Insurance for under 25 years of age employees or owners is higher than the industry average. The increased price of the premium is due to the associated risk insurance companies assign to younger drivers by default.

Who needs under 25 motor trade insurance?

The motor trade insurance for under 25 is specifically designed to financially protect those who are the boss and under 25 years have employee's under the age of 25.

Businesses in the motor trade industry include new and used vehicle dealers, motor traders working from home, emissions testing facilities, repair garages, auction houses, vehicle restoration and modification specialists and valet service businesses. All of these businesses are required by UK law to have motor trade insurance to operate their business.

What is Motor Trade Insurance?

Motor trade business are those repair shops, car dealers, auction houses and testing centres that operate someone else’s vehicle as part of their business. This insurance will cover the costs of repairs to a vehicle that is involved in an accident that might or might not be the fault of the operator.

under 25 traders insurance

What type of motor trade insurance is available?

All the types of policies listed below are also required to have public liability cover as part of their policy. Those businesses with employees must also have employer liability cover.

  • Third Party, the minimum required by UK law
  • Third Party Fire and Theft
  • Comprehensive

Can a motor trade business have employees under the age of 25 and avoid the higher rate associated with young drivers?

Yes, there can be employees working for a motor trade business that are under 25 years of age and avoid the higher premium costs under certain circumstances. The restriction is the employees under the age of 25 can never under any circumstances operate any of the business’s vehicles, not even around the lot. If they do and there is an accident, the claim will be rejected if submitted.

The most common positions of these young people include administrators, receptionists, car washers and janitors.

What requirements warrant a motor trade insurance for under 25 traders insurance policy?

Employing anyone under the age of 25 that will operate a vehicle of the business. These employees must have possessed a UK driving licence for a minimum of 1 year prior to employment. The minimum age differs from the many insurance firms who offer this speciality type of cover that includes 18, 22 and 23. 

Are there any add-ons that should be considered for the motor trade insurance under 25 policy?

  • Many businesses add business property and equipment as part of their insurance coverage. This is protection just in case of a fire, flooding or theft..
  • There is also legal cover to help handle the costs if a claim is made against the business.  This portion of the policy will take care of the court costs, settlements and legal fees.
  • Breakdown cover is recommended for motor trade business that does not have a mechanic on staff or a tow truck.

Are there Different Types of Motor Trade Insurance?

Like any insurance, you can add additional elements of insurance to the base policy. For example, if you are a mechanic and also offer a vehicle recovery service for your customers, you would need recovery truck insurance to be included in your mechanic's base policy,

  • Third Party policy covers the costs of repairs and medical bills of the other vehicle you or your employee hit in an accident. Your customer’s car is not covered.
  • Comprehensive policy is a more complete coverage. This way the repairs to both vehicles are covered along with medical and legal fees for accidents that occur on the road.
  • Combined policy covers everything in the comprehensive policy plus it covers the premises of the business in case there is an accident, fire or theft that occurs there.
  • Public Liability policy covers the medical bills any customers might have when they are on your premises just in case they are injured.
  • Employer’s liability policy protects against the cost of an injury or death of you or one of your employees in a work related activity.
  • A legal amendment can be added to both public and employer liability insurance to cover the legal fees just in case there is a lawsuit.
  • Breakdown policy covers the costs of retrieving a vehicle that is no longer able to propel itself down the road.

Who Qualifies for Motor Trade Insurance under 25?

  • Anyone between the ages of 18 and 25 who are working in the motor trade business.
  • Some companies begin coverage at 22 and other at 23.
  • Drivers that only have 3 claims or less against their driving record.
  • The driver must have a valid UK driver’s licence.
  • Must work and provide proof that they operate in motor trade business sector.
  • Drivers with no criminal conviction.

What Affects the Costs of under 25 traders insurance?

  • The age of the drivers being covered.
  • The driving record of the drivers being covered.
  • The public (The size of your business) record of the drivers.
  • The size of your business.
  • The type of business you own in the motor trade industry.
  • The level of coverage you need for you to be protected as you desire.

By law, everyone operating a vehicle on the road in the UK must be covered with a minimum of 3rd party liability insurance. In the motor trade industry, the recommended minimal coverage is a comprehensive policy.

The reason motor trade insurance for those under 25 is higher than other drivers is the higher risks associated with covering younger drivers.

Start comparing under 25 and under 21 traders insurance.

Regardless if this is a new venture or time to renew your annual policy, it is best to compare all the options for under 25 insurance that are available. We have partnered with Quote Zone, who can help by providing multi under 25 traders insurance quotes, from a panel of UK brokers. Start by selecting a quote button below. 

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