How much motor trader insurance?
Discussion
All that jazz said:
ATM said:
Wrong
You have to inform the Ins Co with car regs and they register them on the db.
Wrong.You have to inform the Ins Co with car regs and they register them on the db.
I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
ATM said:
Apologies for the misinformation.
I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
Nope. There is no requirement to add the registrations to the MID but it is advised that you do if you intend to use them for a prolonged period in order to avoid being hassled by the cops.I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
All 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.
When I ran a trade policy I was DEFINATELY asked for proof of trading each year by the insurance company at renewal. So he wasnt talking out of his arse as you so politely put it...hedgefinder said:
When I ran a trade policy I was DEFINATELY asked for proof of trading each year by the insurance company at renewal. So he wasnt talking out of his arse as you so politely put it...
Well it's not consistent then. I can say with absolute certainty that Tradewise nor their brokers required it and nor did Tradex, both of which are probably the biggest 2 names in motor trade insurance. YMMV..All that jazz said:
hedgefinder said:
When I ran a trade policy I was DEFINATELY asked for proof of trading each year by the insurance company at renewal. So he wasnt talking out of his arse as you so politely put it...
Well it's not consistent then. I can say with absolute certainty that Tradewise nor their brokers required it and nor did Tradex, both of which are probably the biggest 2 names in motor trade insurance. YMMV..All that jazz said:
ATM said:
Apologies for the misinformation.
I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
Nope. There is no requirement to add the registrations to the MID but it is advised that you do if you intend to use them for a prolonged period in order to avoid being hassled by the cops.I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
All that jazz said:
ATM said:
Apologies for the misinformation.
I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
Nope. There is no requirement to add the registrations to the MID but it is advised that you do if you intend to use them for a prolonged period in order to avoid being hassled by the cops.I know 3 guys with trade policies and that's what they all do. They told me they have to do it. They dont use trade plates. Could that be the difference?
http://www.coveainsurance.co.uk/ourproducts/commer...
MID Updates
To comply with the 4th EU Motor Directive you are obliged to provide the Motor Insurance Database (MID) with the registration numbers of all vehicles that you own that will be driven, used or parked on a road or public place which are covered by your Covéa Insurance Motor Trade Road Risks policy. This includes:
All vehicles which you (or your spouse if named on your policy) permanently own.
Stock vehicles taxed and in your possession for more than 14 days.
Vehicles driven under Trade Plate regulations. All Trade Plate numbers must be disclosed.
Notifying the MID with your current vehicles is a legal obligation and failure to supply the information and keep it up to date is a criminal offence. The maximum penalty is a fine of £5000. We understand that the Motor Insurers Information Centre (MIIC) will be seeking prosecution on non-compliant policyholders.
All that jazz said:
Well it's not consistent then. I can say with absolute certainty that Tradewise nor their brokers required it and nor did Tradex, both of which are probably the biggest 2 names in motor trade insurance. YMMV..
Tradex are not the biggest Insurer in MT by a long way, they are very big in covering traders who do not have premises and are certainly one of the major players in this field although personally I would not insure my worst enemy with them.Tradex as do most Insurers who provide cover for motor traders without premises do reserve the right to require you to provide proof you are a bona fide motor trader. This would typically be sales or purchases invoices / receipts or adverts. You acknowledge that you will keep records of all business transactions when you take out cover. They do not insist on seeing such documents on all claims but they certainly do insist on some claims as I've seen quite a few claims declined due to customers not being able to provide them.
With regard to updating the MID you may find this leaflet helpful http://www.mib.org.uk/NR/rdonlyres/E5BCBA75-D5CE-4... incidently a lot of the MT road risk only providers will only pay claims for your own / stock cars that you've uploaded to the MID unless you've cleared the vehicle with them or only recently acquired the vehicle
fridaypassion said:
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.
Please be careful as "Road Risk Only" policies eg policies for traders without premises typically exclude claims if you have business premises (Not your home) with the exclusion area typically being with 500m of your business premises. This is done to prevent traders with premises covering themselves on a road risk only policy.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.
If you have business premises and have not extended cover for the premises the exclusion zone normally automatically applies
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