Under 25? You can still get a good motor trade insurance quote

14 June 2013

Unfortunately youth does have its downfalls, including having to pay out slightly more for motor trade insurance. If you’re under-25 the majority of insurers will charge you a higher premium for your policy, while some may not even insure you. You shouldn’t let this deter you from starting up your own business in the motor trade industry or settle for an expensive motor trade quote.

Whether you yourself are under-25 or you are looking to hire someone within your business under the age threshold, your policy will come with a slightly higher price tag. People under the age of 25 are classed as ‘high risk’, this is because – statistically speaking – they are more likely to be involved in an accident. The more chance of an accident, the higher the chance that an insurance company will have to pay out – resulting in a higher cost premium.

As well as costing more money, an under-25 policy also often comes with certain restrictions. You have to be at least 18 years old and you must have had a valid UK or European driving licence for at least 12 months. Although you can have a full driving licence at 18, some companies won’t insure you until you are at least 23 because they calculate the risk as being too high.

Some under-25 policies will also place restrictions on the type of vehicles that can be driven, to further reduce the risk of insuring a younger driver. Some companies may be willing to provide motor trade insurance for someone under 21, but as a result might impose a rule that they can’t drive a vehicle exceeding a certain engine capacity.

Despite all of these issues it is still possible to find a cheap under-25 motor trade insurance policy. Just as with any other kind of insurance, it is important to shop around and see what is available.

Make sure you check every insurer’s small print; you don’t want to be subject to any restrictions that don’t suit your business. If you can get a lower quote by opting to impose certain restrictions, go for it. If it won’t affect the type of business you are running, setting restrictions doesn’t really matter and can ultimately shave pounds off your policy.