Trade Policies
Discussion
A friend has been looking into this as he owns several cars of his own and is looking into buying and selling a few on the side. From what I've been told for £500 all of his cars are insured fully comp and he can drive anything up to a certain value providing it is for business or prospective buying. You don't need to be a registered trader to have it either?
Seems like a great deal but surely there must be a catch? Just seems far too easy and cheap when you're lucky to insure a single car for under £500 with an insurer these days
Seems like a great deal but surely there must be a catch? Just seems far too easy and cheap when you're lucky to insure a single car for under £500 with an insurer these days
Is that £500 per year, or per month 
The interesting thing with trade policies, is that as standard, they tend to exclude anything interesting (hi performance, classics, imports etc.) and the cost to include them can be a significant amount, if at all.
Also worth noting is that many policies, wont accept private car no claims (or at least didnt when I first set mine up a decade ago) so you have to go through the pain of high premiums all over again!
The interesting thing with trade policies, is that as standard, they tend to exclude anything interesting (hi performance, classics, imports etc.) and the cost to include them can be a significant amount, if at all.
Also worth noting is that many policies, wont accept private car no claims (or at least didnt when I first set mine up a decade ago) so you have to go through the pain of high premiums all over again!
Negative Creep said:
A friend has been looking into this as he owns several cars of his own and is looking into buying and selling a few on the side. From what I've been told for £500 all of his cars are insured fully comp and he can drive anything up to a certain value providing it is for business or prospective buying. You don't need to be a registered trader to have it either?
Seems like a great deal but surely there must be a catch? Just seems far too easy and cheap when you're lucky to insure a single car for under £500 with an insurer these days
It does limit things a bit if you're not insured for anything which isn't business or prospective buying. Social, or commuting, for example.Seems like a great deal but surely there must be a catch? Just seems far too easy and cheap when you're lucky to insure a single car for under £500 with an insurer these days
AndrewW-G said:
Is that £500 per year, or per month
The interesting thing with trade policies, is that as standard, they tend to exclude anything interesting (hi performance, classics, imports etc.) and the cost to include them can be a significant amount, if at all.
Also worth noting is that many policies, wont accept private car no claims (or at least didnt when I first set mine up a decade ago) so you have to go through the pain of high premiums all over again!
To add to this if anything happens to one of your cars they will pay out 'trade' value only. Usually just under peanuts.The interesting thing with trade policies, is that as standard, they tend to exclude anything interesting (hi performance, classics, imports etc.) and the cost to include them can be a significant amount, if at all.
Also worth noting is that many policies, wont accept private car no claims (or at least didnt when I first set mine up a decade ago) so you have to go through the pain of high premiums all over again!
There might be exclusions to some policies where modified cars (many jap imports) are covered third party only! Find out and get it in writing if they say they do cover mods.
If you want to go back to normal motor insurance many firms do not take motortrade ncb seriously at all. Some do though.
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