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Thread: Motor Traders Insurance

  1. #1
    Join Date
    Apr 2011
    Posts
    3

    Default Motor Traders Insurance

    I am seeking clarification regarding motor traders insurance.
    On TV I saw a driver produce a traders certificate which did not specify his personal car and he was not the policyholder. He was charged with having no insurance because the car was not registered with the Motor Insurers Database.
    I am a bit confused about the legalities of Traders Policies, and ask if anyone can help me to understand them a little better.
    Thank you,
    sandyshand

  2. #2
    Join Date
    May 2008
    Posts
    10,543

    Default

    A trader policy can either have a registration number shown or it can say any vehicle in the policy holder's control etc. If it says any vehicle, then the policy holder MUST inform the Motor Insurers Database (MID) within 14 days if the vehicle is in their possession. So, if I take a customer's car for an MOT, I am insured and do not have to inform MID. If I buy a car from a customer then I must inform MID. If you are a car dealer and have 20 cars on the policy, when you sell one you must immediately notify MID. If you take one in part exchange and its your property then you must notify MID.
    When you notify MID online via your insurer, you should always print off a copy of the page and keep it as proof as you will have no other way of proving you told them.

  3. #3
    Join Date
    Apr 2011
    Posts
    3

    Default

    Thank you very much for your helpful answer. Can you be of further assistance and clarify if an employee of the trader can use his own personal vehicle under the trader policy, thus avoiding paying his own premium.
    Once again I am grateful to you for your help.

  4. #4
    Join Date
    May 2008
    Posts
    10,543

    Default

    In my opinion, and I am not an insurer (!), I would say not. The policy does allow you to own your cars and they are covered so long as you tell MID. I am a sole trader so cannot say for certain. A lot of mechanics will tell you they have a trader policy and it only cost them £400. They drive all sorts of cars but what they dont tell you is there is a value limit. For a £400 premium the value limit will be very low, maybe as little as £2000. So if they drive your nice new BMW M3 and crash it, the company will only pay out £2,000. They will be liable for the rest and there wont be much chance of getting it.
    To answer your question you would need to contact the insurance company for the employer and ask them. I would be very, very surprised to find the employee was covered to drive his own personal car on this policy. I think its a dodge as the police will only check the MID, see the car is registered and let it go. If they were to contact the insurance company directly, I think they would be seizing an uninsured vehicle.

  5. #5
    Join Date
    Oct 2007
    Location
    Middlesex
    Posts
    8,495

    Default

    I worked for a garage where the owner's relatives were all 'employees', and all their cars were registered as belonging to the owner. This allowed them to drive. However, it would not have taken a great deal of effort to prove they did not work for him, as they all had independent jobs.

  6. #6
    Join Date
    Apr 2011
    Posts
    3

    Default

    Thanks again for the replies. You have both been very helpful

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