Trade Plate Insurance

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Trade plates are an invaluable tool for many motor trade businesses. They allow the company to move vehicles from one location to another without having to register or tax them.

However, some motor traders’ policies don’t include trade plate cover as standard. So, it’s important that you carefully compare policies and check what’s included and excluded on each one before you buy. This also means you can find offers for trade plate insurance at a fair price.

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What are trade plates?

Trade plates let you move cars that are unregistered and untaxed. Using trade plates saves you from sorting out tax and ownership details for cars that are temporarily in your care. This means they can save car dealerships and other motor trade businesses a lot of time, money and effort.

Why do I need trade plates insurance?

Motor trade plates can only be used in certain situations – and you’ll need trade plate insurance before you can legally drive a car with trade plates on public roads. If you’re in the motor trade industry and drive or move vehicles on public roads without taxing or registering them first, then you’re likely to need both trades plates and trade plate insurance. For example, if you’re a:

Car dealer

Vehicle tester

Scrap or salvage business

Business that collects or delivers vehicles

How to get trade plates

You can only get trade plates from the DVLA (Driver and Vehicle Licensing Agency). To apply, you’ll need to be a registered company and give the DVLA your Companies House registration number. You’ll also need proof of public liability insurance and your motortrade certificate.

Your insurer will need to know the details of any vehicle trade plates you have so they can be passed on to the Motor Insurance Database (MID). In most cases, your provider will do this for you but it’s worth double checking this.

The rules around trade plates are strict and anyone found misusing them could face a £5,000 fine or even a jail sentence.

You can find more information on how to apply for trade plates in the UK here.

How much is trade plate insurance?

There is no way to give an accurate answer to this as the cost varies depending on your business and the level of coverage you need. But you can get an idea of how much it might cost you by considering the various factors that insurers use to set your premiums. Factors that affect the cost of your trade plate insurance can include:

The type of business you have

The services you provide

How many employees you have

You and your employees’ driving history and age

Your business location

The level of coverage you want

The insurer you choose

Your claims history

What risks does trade plate insurance cover?

Trade plate insurance protects motor trade businesses against the risk of an accident or claim when they drive unregistered and untaxed vehicles on public roads.

If your standard motor trade insurance policy includes trade plate cover as standard, it’s possible this might be third party only. In which case you’d only be covered against the cost of damage to a third party’s vehicle or property.

However, most insurance providers should allow you to increase your cover to third party, fire and theft or fully comprehensive, which would mean the vehicle you’re driving could also be covered.

To learn more about trade plates, read our comprehensive UK trade plates guide here.

How can I get cheaper trade plate insurance?

With trade plates being a cost effective choice for your motor trade business, it’s understandable that you don’t want to offset these savings by paying a fortune on your trade plate insurance.  Some things you can do to get potentially cheaper trade plate insurance include: 

Decide on the level of coverage you need 

Like with other vehicle insurances, you have the options of third party, third party fire and theft, or comprehensive insurance. Knowing which option your business needs means you won’t overspend on coverage you don’t need.

Be proactive in protecting against claims 

Things like risk assessments and risk management measures are not only good business practices, but they let insurers know that you are less of a risk to insure.

Build a no claims discount 

This one can help you save money in the long run. But until you build this, you can check if your insurer allows you to transfer your personal no claims history to this policy. Only some insurers allow this, but it is worth asking. 

Pay your premium annually 

If you can afford to, paying your premium annually rather than monthly usually comes with a discount from insurers.  

Choose higher excess 

These can reduce premium costs. But they still need to be amounts you are willing and able to pay when you make a claim. 

Compare quotes from various insurers 

Comparing quotes can make sure you are not paying over the odds for your insurance and can help you find cheaper prices you wouldn’t otherwise be aware of. 