Young Traders' Policies?

[anonymous-user]

Any young people rocking trader's policy on PH?

I sort of gave up when I was quoted £7,500 a while ago, but I was told to retry at 19 so I think I'm going to think it another shot, I just wanted to know who will/won't cover (I'm not keen on wasting my own, or anyone else's time).

I know it isn't going to be cheap, but I am already paying out of the backside for the soarer, I wouldn't mind spending a bit extra for the flexibility such a policy offers (I ideally want to start looking at trading cars on the side).

I was talking to a friend who is covered on a trader's type policy, but he has to inform the insurance company of whatever he drives before he can actually drive it. Between him and his step father it's £2000, and I believe that covers the young guy to drive Ultimas!

Do you think it'd be worth getting quotes with my parents' names instead? I'm not sure how it works given a trader policy. Not awfully fussed about the cover, I just want to be insured when I am on the road bringing something to and from my lock up, and to cover me on the Soarer when I doing my daily business (hell, I'd even consider selling the Soarer if they wanted me to have something "normal"). I'd even be happy with 3rd Party only! I won't be dealing with anything expensive (sub £5000) either.

Thoughts?

Thanks

Josh

Edited by Simps on Friday 13th August 16:07

[V8mate]

Motor trade policies are for motor traders.

[mini1380cc]

I'm covered by a traders policy for the family business which i work for in the evenings and weekends. By adding myself to the policy it only increased the premium by about 20%. I still have seperate policies for my personally owned cars.

[aka_kerrly]

Simps said:

(I ideally want to start looking at trading cars on the side).

Edited by Simps on Friday 13th August 16:07

The whole point of a traders policy is that you have one when you are a full time car trader ie you have a VAT registered legal Car sales business and a stock of cars. Perhaps there might be a policy out there that would cover part time traders then you maybe able to blag it but i should think you will have problems if the only car you drive is registered to yourself.

Or am i missing something obvious

dave

[confused_buyer]

There are all sorts of policies covering all sorts of things (including part time) but what you can't do is say you are doing one thing and do another.

If you say you are trading cars, part time or not, and are not then you are lying and will invalidate your policy. They can, and will, check in the event of a claim. What you can't do is use one to cheaply insure a fleet of private cars when you do not carry out the trade the policy is for - they are as wise to this as they are 19 year olds on their parents policy and the car has a crash at a University address 200 miles from home....

[anonymous-user]

V8mate said:

Motor trade policies are for motor traders.

And like I said, I will be trading. Not nearly as prolifically as a full time trader with a pitch, but it's still trading. Probably Not enough to get the DVLA/Tax man involved, but enough for me to qualify, at least in some insurers eyes (the last place I rang was more than happy when I told them I went through about 4 cars a year, )

The umbrella of "Trader policy" fits the type of cover I require far more than your run of the mill policy. But, if you know a better term that I should use, I'm all ears...

Edited by Simps on Friday 13th August 16:31

[markmullen]

anonymous said:

[redacted]

No requirement to display trade plates if the car is taxed and has the correct reg plates on.

[anonymous-user]

confused_buyer said:

There are all sorts of policies covering all sorts of things (including part time) but what you can't do is say you are doing one thing and do another.

If you say you are trading cars, part time or not, and are not then you are lying and will invalidate your policy. They can, and will, check in the event of a claim. What you can't do is use one to cheaply insure a fleet of private cars when you do not carry out the trade the policy is for - they are as wise to this as they are 19 year olds on their parents policy and the car has a crash at a University address 200 miles from home....

You're right .

I think maybe people are jumping to the conclusion that Young guy + Interest in trade policy = Fraud, but believe it, it won't.

I do fully intend to do a little bit of trading (Stuff more akin to an episode of Wheeler dealers than "Buy em cheap, stack em high" mind)

I'll take up doing these little projects on the side regardless, but a Trader policy would make my life a million times simpler.

[aka_kerrly]

^^ correct.

traders plates are to blag it and allow you to move untaxed cars for eg test drives or to move it to your site prior to sale.

Still fail to see how having a traders policy will let you drive your own car which is registered to you personally ie not to your business!

dave

[Plotloss]

anonymous said:

[redacted]

They allow you to move an untaxed car legally on the road.

You can't park on them, they're for movements alone.

On the subject of trader's policy, mates dad has been a trader for 45 years, his brother for 25 years.

Youngest person on the policy is 40 and they pay around £2K a year.

[markmullen]

anonymous said:

[redacted]

Essentially yes, they cover us for road tax and for number plates but not for MOT, roadworthiness or insurance. As Plotloss rightly says they are only for moving vehicles, you can't park up on them and some cops can be funny if you're using them out of business hours (I will run something thats had a load of work done to it overnight to see if there is any snagging needing doing, get stopped from time to time but they're usually cool about it once they find out it is all insured, above board etc).

[J4CKO]

Does make life difficult if you want to sell the odd car for profit as a hobby as you cant move them about without either insuring them in your own name or taking a risk unless you have trade insurance.

If I were payign two grand a year insurance I wouldnt insure my own car separately or even have my own, I would just use whatever I had at the time and do like proper motor trader and use whatever came in with the most petrol in.

[chris7676]

Even on here you can see a paranoid attitude towards young people in this country.
You ask about the trader's policy and people suddenly suggest you would do it it REDUCE your premium - somehow can't see that happenning, rather the other way around (as when you add business category to your normal policy). You can always check Tradex (the insurer itself), otherwise specialist brokers (unlikely the big animal and the captain crook group;).

[V8mate]

J4CKO said:

If I were payign two grand a year insurance I wouldnt insure my own car separately or even have my own, I would just use whatever I had at the time and do like proper motor trader and use whatever came in with the most petrol in.

IIRC, 'no claims' accrued on a Motor Trade policy is not transferable to a private car policy.

[anonymous-user]

As far as I am aware, unless the policy forbids it there is not an issue for using a car covered by the traders' policy for social and domestic uses, so where is the issue coming from?

[anonymous-user]

J4CKO said:

Does make life difficult if you want to sell the odd car for profit as a hobby as you cant move them about without either insuring them in your own name or taking a risk unless you have trade insurance.

DING DING DING! This!

J4CKO said:

If I were payign two grand a year insurance I wouldnt insure my own car separately or even have my own, I would just use whatever I had at the time and do like proper motor trader and use whatever came in with the most petrol in.

Again, this is more or less exactly my situation.

More than willing to chop in the Soarer in need be, but I need Domestic & Social use on SOMETHING, and can't afford a separate policy. It'd have to come with the trader policy, which I never thought was an issue?

Edited by Simps on Friday 13th August 16:59

[markmullen]

Be careful running a trade policy, naturally it varies from policy to policy but a lot are either third party only or alternatively have excesses which essentially make them effectively third party only (£10k excess etc).

[odyssey2200]

Simps said:

but it's still trading. Probably Not enough to get the DVLA/Tax man involved, but enough for me to qualify,

if you turn over more that £60k the VAT man will be interested and as you are blatantly trading and generating an income the TAX man is already interested.

unless you are a




You might also want to give some thought to Public and Product liability insurance.

Edited by odyssey2200 on Friday 13th August 17:17

[markmullen]

odyssey2200 said:

Simps said:

but it's still trading. Probably Not enough to get the DVLA/Tax man involved, but enough for me to qualify,

if you turn over more that £60k the VAT man will be interested and as you are blatantly trading and generating an income the TAX man is already interested.
[/footnote]

HMRC have software to scan Autotrader and eBay to watch for folk frequently selling cars, unless you bin your SIM every time you do a deal (which is hardly going to help foster repeat business) then they likely already know you're trading.

[odyssey2200]

markmullen said:

odyssey2200 said:

Simps said:

but it's still trading. Probably Not enough to get the DVLA/Tax man involved, but enough for me to qualify,

if you turn over more that £60k the VAT man will be interested and as you are blatantly trading and generating an income the TAX man is already interested.
[/footnote]

HMRC have software to scan Autotrader and eBay to watch for folk frequently selling cars, unless you bin your SIM every time you do a deal (which is hardly going to help foster repeat business) then they likely already know you're trading.

I must set up a new ebay account