How much motor trader insurance?
Discussion
GreatGranny said:
Snowboy said:
I would guess this would be the problem for most people.
I also wonder if there might be some link to the inland revenue to check if the trader is registered.
Perhaps something like a vat reg number.
If you're not a trader I think it a potential minefield.
Most small trader's turnover isn't enough to be VAT registered.I also wonder if there might be some link to the inland revenue to check if the trader is registered.
Perhaps something like a vat reg number.
If you're not a trader I think it a potential minefield.
Think the threshold is £50k per annum.
But as you said they will want proof of trading especially if you make a claim.
ATM said:
Ok but was it proof - if I am a part time trader [with an unrelated full time job] and I buy and sell cars for cash with hand written receipts?
Then send them copies of the receipts.I'm sure it's possible to get trade insurance when you're not really a trader, I'm sure there's loads of people insured that way.
But, I'm also fairly sure that if they ever need to claim they might find themselves in a spot of bother when the insurance company takes a closer look at them.
Toaster Pilot said:
Bollington just quoted me reasonably , capped to insurance group 31 because I'm 23.
They did say they'd need evidence of trading at least six cars a year at renewal or in the event of a claim.
Interesting, thanks for that. I have started doing little bits and pieces myself, but I have struggled obtaining quotes before because of my age (also 23) They did say they'd need evidence of trading at least six cars a year at renewal or in the event of a claim.
Edited by Toaster Pilot on Tuesday 15th April 21:03
All that jazz said:
Try Tradewise through TradePlan. No-one else could come close for me, especially at renewal time.
They won't quote under 25s I'm afraid. Bollington (unsure who the underwriter is - limited to group 31) and Tradex (limited to group 28) are the only two sensible quotes I've had so far.ATM said:
They see "high performance vehicles" as anything above insurance group 28, FYI.Toaster Pilot said:
ATM said:
They see "high performance vehicles" as anything above insurance group 28, FYI.I do hope you'll be registered as a trader, declaring income to the tax man and will be providing enough warranty to cover yourself under the SOGA...
I wasn't asked for proof of trading when I had my trade policy, although it was under my company name.
GreatGranny said:
Most small trader's turnover isn't enough to be VAT registered.
Think the threshold is £50k per annum.
But as you said they will want proof of trading especially if you make a claim.
You're not going to make much of a living with a turnover of under £50k Think the threshold is £50k per annum.
But as you said they will want proof of trading especially if you make a claim.
I wasn't asked for proof of trading when I had my trade policy, although it was under my company name.
I've recently made this jump so can fill in some of the gaping holes in this thread!
When you set up legitimately as a trader you effectively are VAT registered. You participate in the margin scheme so 20% of your profit is paid in VAT. So if you make £1000 you pay £200 in VAT just like a normal VAT registered company does.
Your turnover if you sell 50 cars at £1000 profit is £50,000 not the value put together of the cars you have held in stock. so 50k T/O as a part time or even full time concern with low overheads is good.
Insurance is a total nightmare. I have a very flaky policy with Tradex for £1100 with a 15k single claim limit. Basically you pay £1100 to be able to put cars on the MID database yourself so you will never get pulled by the police. I have trade plates as well so you can drive any car on the road even with no MOT/Tax which is very handy and well worth the relatively small amount it costs. We will be upgrading our insurance via insurance_jon on here when its up for renewal. I have a small premises as well and we are just trying to sort some reasonable cover for that at the moment that will probably be another £500 for 50k of stock cover. Add on security costs/rent/services etc and its very, very different to selling the odd car and not properly declaring the profits.
When you set up legitimately as a trader you effectively are VAT registered. You participate in the margin scheme so 20% of your profit is paid in VAT. So if you make £1000 you pay £200 in VAT just like a normal VAT registered company does.
Your turnover if you sell 50 cars at £1000 profit is £50,000 not the value put together of the cars you have held in stock. so 50k T/O as a part time or even full time concern with low overheads is good.
Insurance is a total nightmare. I have a very flaky policy with Tradex for £1100 with a 15k single claim limit. Basically you pay £1100 to be able to put cars on the MID database yourself so you will never get pulled by the police. I have trade plates as well so you can drive any car on the road even with no MOT/Tax which is very handy and well worth the relatively small amount it costs. We will be upgrading our insurance via insurance_jon on here when its up for renewal. I have a small premises as well and we are just trying to sort some reasonable cover for that at the moment that will probably be another £500 for 50k of stock cover. Add on security costs/rent/services etc and its very, very different to selling the odd car and not properly declaring the profits.
fridaypassion said:
very different to selling the odd car and not properly declaring the profits.
I buy and sell a few cars here and there. But I never make any money. I'm lucky if I don't loose too much. I just like buying cars and I'm terrible at selling them. I'd buy and sell more if I had a trade policy because this is the biggest expense to me buying extra cars I don't need. I can only drive one right but I pay the same to add additional vehicles. Its a right royal rip off. I might try that jon guy too thanks.t400ble said:
TheAngryDog said:
I had a traders policy, it didn't cover me to drive other peoples cars third party like normal insurance policies. Would be wise to check this as well before taking a policy, if you need to drive other peoples cars such as friends or families
No but you'd be covered on your trade policy to drive themAll that jazz said:
You don't. The t400 person is talking out of their arse. I've never been asked to provide any proof (including the event of a claim) with any of the trade ins cos I've been with over the years. Sounds like another forum "expert" that doesn't actually have any hands on experience or knowledge in my personal opinion.
I have a motor trade policy and have been asked for proof of trading after a claim. fridaypassion said:
I have trade plates as well so you can drive any car on the road even with no MOT/Tax which is very handy and well worth the relatively small amount it costs.
Trade plates only cover tax and then only under very particular circumstances, it won't, for instance, cover you if your name is on the V5.Gassing Station | General Gassing | Top of Page | What's New | My Stuff