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Discussion Starter · #1 ·
ok before i get slated about breaking rule's with insurance etc etc...i'm only curious!! thats all :)...

used to work with a guy who was 19 and driving a 1.8T A3, he's now 20 and driving a civic type-R...i asked him how he managed to get insured on the cars...so he says...trader's insurance, which allows him to drive any car at any time...

now i've heard about trader's from several people and heard several stories! a few i've heard have a long distance relative or something that owns a scrap yard/car lot...they pay their releative part of the policy and therefore they get traders...

i'm guessing this is illegal UNLESS they actually work for the scrapyard or something like that?

so my question is...who can use trader's insurance? is it the employees or the owner's? does the business have to be VAT registered in the motortrade? what about a private car trader? what are the legistics?
 

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well my traders insurance you have to be over 25 and i think if your under 25 you can only drive up to a 1.6. Traders insurance is very dear when you start putting a few people on it. so i would say that he probberly does not have any insurance really.
 

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Have a search for choicequote

They may be able to explain a bit better

Also it appears you can be full/part time business to get Traders Insurance

Ciao

Def
 

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i know a few garage owners some not vat registered who have trader policies it depends on the wording on the certificate who can drive what some have cover for customers to test drive cars , most have their wife and kids on the policy to drive their cars , the drawback is most companies are now asking for you to submit the make and model of the cars owned and driven regularly this is to stop things like 18 year olds driving "type r's" and things like that.
 

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Discussion Starter · #5 ·
thewww said:
i know a few garage owners some not vat registered who have trader policies it depends on the wording on the certificate who can drive what some have cover for customers to test drive cars , most have their wife and kids on the policy to drive their cars , the drawback is most companies are now asking for you to submit the make and model of the cars owned and driven regularly this is to stop things like 18 year olds driving "type r's" and things like that.
but what proof do they have of which car is their "main" car...a trader could just keep a 1.0 micra or something and say its their main car...and when they crash their supra...they could just claim they were testing it out or something...seems like there are a lot of blanks :confused:
 

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After being covered on a Traders policy at my last job, I was very dubious about the cover and I didn't want to get caught out, so got a copy of the policy from my boss and did some enquiring.

The policy was very expensive for the initial outlay, but was then only £50 per person to be covered specifically (named on the policy) for the year. The policy was very 'loose' as far as I was concerned. The wording said anyone with the correct license, over the age of 21, with 8 or less points could be covered as long at the policy holder said they could drive a car or they were named (so they didn't even have to work for the company). As stated we were allowed to drive any vehicle, owned by the company or policy holder, or any other car as long as it wasn't in our name and as long as it wasn't powered by steam. It also stated we were covered to drive any time of the day for either personal use or use in connection with the company. It didn't cover us for taking part in speed trials or track events but did cover us for taking part in treasure hunts.
I'm sure you can see the reason why I wanted to check - had one of the insurance brokers people come in to do a review of the policy due to us expanding, so asked a few questions to double check everything, make sure we really were covered the way it said we were. His response was "go out and buy a ferrari, put it in your dads name, and your covered".
 

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Discussion Starter · #8 ·
Scoobler said:
"go out and buy a ferrari, put it in your dads name, and your covered".
lol :D

what insurance company was that policy with btw?

so that means if someone has a motortrade business of any sort...they can insure ANYONE they want on the policy! (over21, less than 8points) to drive any car at any time for most purposes...? correct? so long as the car's are all owned by the business/policy holder and not by the named drivers...

hmm...so whats stopping any joe bloggs from opening up a sole tradership and getting a trade policy?? since trade policies can be used for private car dealers also
 
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