As most younger people are already aware, getting motor insurance when you are under 25 is a costly business. If you are working within the motor trade - whether it’s your own business or someone else’s – the costs of young traders’ insurance can be even higher.
Unfortunately, younger drivers are statistically more likely to be involved in an accident than someone experienced and a couple of decades older. Being in the motor trade also increases your frequency on the roads, with its inherent risks, so finding a policy within budget to suit your business can be tricky.
Here is an overview of how you can get under 25 motor trade insurance and keep the costs down.
What is Traders Insurance for Under 25s?
You will need motor trade insurance if you are involved in running a garage, doing MOTs, servicing and repairing vehicles, valeting, driving vehicles from one place to another, even moving a customer’s car within a garage forecourt or showroom.
What’s essential is finding a policy that is both affordable and offers suitable protection to ensure you are covered for the work you are currently doing. To achieve this, you may find some restrictions on your policy, such as the type of cars you will be allowed to drive. Smaller vehicles with lower engine capacities are more easily covered than powerful high-end luxury cars or high tonnage trucks.
How much will my policy cost?
The cost of traders’ insurance for under 25s will vary depending on several factors including the type of business you own, the level of excess you are prepared to pay, type of cover you need, building security and where it’s located.
• What is your business? Some motor trade businesses are at higher risk than others, especially if it involves a lot of driving and expensive vehicles.
• Number of employees: If you have employees, their age, experience and driving history will be taken into account when working out the insurance premium.
• Do you have adequate security? If you have secure premises with an alarm, CCTV and security lighting, this will act as a deterrent to potential thieves and brokers will look favourably on this when working out your premium.
• Location, location, location: Whilst putting in additional security measures helps with your policy, being in a high-risk crime area will push up your premium prices.
• The level of insurance: The minimum legal level of cover is road risk insurance which will allow you to work on and drive customer vehicles. Within this, you can opt for Third Party, Third Party Fire and Theft or Fully Comprehensive. If you have employees, then you will need to look at other types of insurance including employers liability.
What is the minimum age for traders insurance?
A broker will look more favourably on giving you traders insurance under 25 if you have undertaken advanced driving courses, don’t have any convictions and have accrued a good driving history.
Adding telematics, dashcams, driving apps and installed software can also keep the costs down for under 25 motor trade insurance.
For more information please contact Tradex on 0300 313 1111