Young motor traders looking to set up by themselves for the first time may find it difficult to get insurance.  We are here to help.

Getting motor trade insurance if you’re under 25

If you’re between 21 and 25 years old, Gallagher can consider you for a motor trade policy.

The best way of getting a policy at this age is to have some previous experience in the motor trade, particularly if you’ve carried out skilled work in service and repair, tyre fitting or a similar role. Your chances of being accepted for a motor trade policy are greater if you can show that you have spent time learning your trade and have gained ‘on-the-job’ experience.

If you’re 23 or older, we can also consider a motor trade policy if you’re involved in buying and selling vehicles. Again, it is better to have already been involved in the trade – so our advice for younger drivers is to start off working at a garage or working for a car salesperson before starting out by yourself.

What cover can you get if you’re under 25?

The basic level of cover that almost everyone needs is road risks insurance, which allows you to drive vehicles you own or are looking after for your customers in connection with your motor trade business.

Road risks insurance is available on a third-party, third-party fire and theft or comprehensive basis, just like your private car insurance. Consider carefully which cover is appropriate for you – while third-party only cover could be cheapest, comprehensive cover offers a greater level of protection in case of incidents or accidents.

To keep the costs of cover down, you may be eligible to transfer your private car no-claims bonus to a motor trade policy, or you could consider raising the excess on your policy and taking out separate Excess Protect cover. Just ask us for details of how this works.

Other covers available include business premises cover (over 23s only), public liability and employers’ liability insurance – in case a member of the public or somebody you employ makes a claim against you – and tools in transit cover, amongst others.

How do I get cover?

Speak to our friendly team for advice on which policy is appropriate for your needs. We can help to get you up-and-running with your new business, whether you want to do some part-time work or become a full-time motor trader.