Young drivers and their employers often find it harder to find affordable motor trade insurance as they are considered a higher risk by insurance companies. However, ChoiceQuote currently have insurance available for motor traders under the age of 25, so there are still ways to find effective cover without overpaying.
When it comes to motor trade insurance, being under the age of 25 can present a bit of a challenge. Whether you are insuring yourself as a self-employed motor trader or if you are looking to find coverage for your employees, you might find it harder to find affordable motor trade insurance when there are younger drivers on the policy.
But don’t lose hope because it’s still possible to find affordable insurance for your needs with a little added thought.
Why is it harder for young drivers to get motor trade insurance?
Stricter rules are often applied to younger drivers when it comes to car insurance due to the increased likelihood of accidents occurring. The same is true of motor trade insurance.
Stricter rules are often applied to younger drivers for car insurance due to the increased likelihood of accidents occurring and subsequent claims on insurance. The same is true of motor trade insurance for young drivers. This is based on statistical evidence and ultimately can’t be avoided.
The older you are, and the more experience you have as a driver, the less risk you generally pose to insurance companies. This means you will often be able to benefit from lower insurance premiums as you grow up – one of the few benefits of aging! In the end, though, as reaction times slow for older drivers, the risk of accidents happening often increases again – so it’s not just younger drivers that sometimes see an increase in their insurance premiums…
Until you reach at least the age of 25, many insurers tend to charge higher premiums when younger drivers are included on a policy, while others will just refuse to cover younger drivers altogether.
Are there ways to reduce your premium?
Lower premiums can be achieved by adhering to certain rules that dictate the young driver’s exposure to risk.
All is not lost. There are ways to reduce your motor trade insurance premiums and achieve the level of cover you need even if you are including young drivers on the policy.
If you’re looking to set up in the trade by yourself, consider partnering with an older, more experienced driver, or look to gain experience by working in a service and repair garage as part of a wider team, for example.
If you are looking to add a younger driver to your policy, think about the ways you can limit the risk of an accident involving them. Consider restricting the kind of vehicles you’re handling (e.g. stay clear of performance vehicles) and avoid any night time driving, for example.
Most insurers will only be able to cover drivers under the age of 25 if they work in service or repair of vehicles, rather than buying and selling them – though some insurers can offer cover for vehicle sales for those over the age of 23. It is worth bearing this in mind before trying to obtain a policy.
If you’ve got an enthusiastic and flexible workforce, it could be worthwhile to lower your insurance costs and give your younger members of the team a chance to build up their experience safely.
While changing your operational activities will help, the truth is that not all insurers will provide motor trade insurance for drivers under the age of 25. At ChoiceQuote, our expert team will only put your details forward to insurers if we know they will be open to offering the cover you need, saving you time and ensuring you get the cover you need at a competitive price.
If your business needs help finding motor trade insurance for yourself or an employee who is under 25, get in touch with ChoiceQuote and we’ll be happy to help you find effective coverage at an affordable premium.
Types of motor trade insurance for under 25s
Every business is different. Make sure your motor trade business has the right level of coverage for your employees and your operations.
Road risk only insurance – road risk only insurance covers drivers who handle vehicles on public roads. Any vehicles connected to your motor trade business are covered by this insurance while they are on the road. If the driver is responsible for handling test drives for vehicles in the showroom or cars left for servicing and road testing, this coverage is a legal requirement to cover any driving on public roads.
Liability insurance – this element of motor trade insurance will protect the business against any legal costs that may be sought by customers due to accidents that may occur to themselves or their vehicles. This includes both employees of a business (it is a legal requirement for a business with employees to have this in most cases) and members of the public.
Combined motor trade insurance – combined motor trade insurance policies cover your premises as well as your drivers. Whether you need cover for a garage, showroom, forecourt or MOT centre, this can protect any vans or cars that you keep on site as well as your buildings, machinery, tools and fittings.
To learn more about the motor trade insurance for young drivers, get in touch with ChoiceQuote today.
Is there a minimum age limit?
There isn’t strictly an age limit on motor trade insurance, but insurance companies will have different policies.
There isn’t strictly an age limit on motor trade insurance, but insurance companies will have different approaches for young drivers. The majority will require you to be over 23 to be considered, while others may offer you insurance as long as you’ve held a driving licence for more than 12 months. The very youngest you can normally get a motor trade policy is at the age of 21, but this will only cover service and repair of vehicles, not vehicle sales.
Certain businesses will be limited if they handle certain vehicles. For instance, hiring an employee over the age of 23 but under 25 would normally result in a higher premium for car sales businesses, but a driver of that age is unlikely to be covered at all to drive high performance vehicles.
How to find the best cover for you
By narrowing down the criteria you can make sure you’re not overpaying for coverage.
As with any motor trade insurance quote, we advise starting by defining what kind of cover you will need to be completely protected – whether you are insuring yourself or your employees. By narrowing down the criteria, you can make sure you’re not overpaying for coverage.
The first thing to consider is whether you need coverage for expensive high-performance vehicles. If not, you can immediately strike this from the list as it will make insurance not just affordable, but attainable. Also, make a list of all the activities you, or the driver in question, will perform. Is it simply moving a car from A to B on the forecourt? Or does it involve test drives out on the public roads? Will it just be performing repair work on cars and never getting behind the wheel at all? When are you working – day or night?
These are just some of the questions to consider. Once you’ve got the basics in mind, you can approach insurers with a clear idea about what you do and don’t need and in turn receive a customised quote.
Is it worth the effort?
Whether you’re looking to start your own motor trade business at a young age or you’re looking to hire a new team member under the age of 25, you will face a few extra challenges. But don’t be disheartened by the idea of high premiums; there are options out there so put your youthful energy to work and find the best deal!
At ChoiceQuote, we can offer you some expert advice on finding the best insurance policies for younger motor traders and will look to assist you in getting quotes from insurers who are willing to look at you individually and see if we can offer you a competitive price.