Young Motor Traders' Insurance for Under 25s

Like motor trade insurance, young traders' cover is designed to help people new to working in the industry. It provides cover for the daily aspects of your job: from driving customer vehicles through to liability protection when working with the public.

However, for those aged 25 or under, finding adequate cover can be challenging. Just like new drivers, young motor traders may face higher premiums and less choice when selecting their cover.

We're here to help. Our team will work with you to help find a policy that suits you and your business, with insurance products specifically designed for young traders aged between 21-25. So, let's take a closer look.

What is young motor traders' insurance?

Motor trade insurance is designed to help businesses with customer vehicles protect themselves from a range of risks they may face. It offers road risk insurance for driving a customer's car, liability cover for working with the public, and even theft protection if something is stolen from your garage or workshop. Young motor traders' cover is similar in scope, but restrictions may vary based on your age.

Can I get traders' insurance under 25?

If you're under 25, you'll likely face challenges when securing motor traders' insurance. However, you will still need to consider cover to meet your needs if you're operating a business in the trade. The main cover is road risk insurance, but you may find other offerings beneficial. Buying and selling cars requires a specific type of motor trade insurance, and the level of cover you take out may depend on which age group you fall into:

• Under 21 traders' insurance
  Motor traders under 21 years of age may struggle to find insurance cover to suit their business needs. Instead, it is usually better to build up your experience in a garage or sales role before launching your own business and applying for cover.
• Motor trade insurance for 21-23-year-olds
  Most trade insurance for young drivers in this bracket focuses on your experience. Insurers will be more favourable in offering cover if you've carried out skilled work in service/repair/tyre fitting etc., and can show that you've accrued on-the-job experience. Road risks insurance is the most common cover offered, protecting you when driving and working with vehicles you or your customers own.
• Combined trade insurance for 23-25-year-olds
  If you're 23 or older, you may be eligible for a motor trade policy that covers you when buying or selling vehicles. You can also take out business premises cover, public liability, and employers' liability insurance once you are 23.

Factors limiting motor trade insurance for under 25s

In addition to age, other limitations may hinder your ability to take out cover. If any of these apply to you, call our team today and see if we can help mitigate the impact and find appropriate protection.

• Criminal convictions
  Criminal convictions, especially driving offences, can prevent you from taking out traders' insurance cover and other business insurances.
• Years of driving experience
  Young motorists who haven't been driving long can struggle to secure trade insurance. However, transferring your no-claims bonus and showcasing a clear insurance history for your personal vehicle can help when seeking young traders' cover.

What are the cover options for a motor trader’s policy under 25?

The main types of cover available are:

1. Road risk insurance protection for driving vehicles in a work capacity.
2. Motor trade insurance offers protection to business premises, customers, and employees.
3. Motor trade combined insurance combines covers under a single policy and is typically designed around your business.

How much does young motor traders' insurance cost?

As a young person, your policy will likely be more expensive than if you were older. However, exact prices are hard to state—several factors influence the premium you pay. These include age, level of experience, the nature of cover (road risk vs motor trade combined), and even the duties you perform when acting as a motor trader— as some activities will be higher risk than others.

With relatively high premiums, many young traders choose to build their experience before the age of 25, so they can launch a business and take out cover when costs should come down. However, there are things you can do right now to help reduce the cost of young traders' insurance:

• Work for someone else in the motor trade
  While it may seem obvious that many young traders start through apprenticeships or work placements, there's still value in repeating the importance of work experience. Working for someone else while you're under 25 means gaining knowledge to help reduce an insurer's perceived risk, but also means any trade insurance is taken out in your employer's name and not yours.
• Reduce risks
  Some cover areas are more expensive than others, such as insurance for those who buy and sell vehicles. To keep costs down, build your experience in a less risky trade area, for example becoming insured as a mechanic and doing service and repair work in a garage, rather than working in a role that regularly requires you to drive on the road.
• Utilise your good driving record
  If you have a clean driving licence and no claims bonus history on your personal motor insurance, you can reduce your trade premium by transferring that across. A clean license and driving record should work in your favour—it's far harder to get insured as a trader if you've not driven for long or have points.

How do I get cover?

As you've probably guessed by the information on this page, getting cover as an under 25-year-old motor trader can be hard work. But it's not impossible. Let Gallagher do the work for you by helping you decide what type of cover is necessary for you and explaining how to reduce risks. Talk to our team today about your motor trade business and see how we can help.

Call us now on 0800 062 2312 or get a quote online.