Classic cars forum & vehicle restoration.

Rootes75 · Posted: Mon Dec 21, 2015 10:23 am Post subject: Multiple Insurance

My Brother-in-law has recently started up a classic car restoration business and at the weekend when we were talking about renewing the insurance on my cars he said that anyone can get 'traders' insurance and it will cover any car and any driver in the business and you don't have to prove that you sell or trade in cars??

Is that true?
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Rick · Site Admin Joined: 27 Apr 2005 Posts: 22784 Location: UK

Wouldn't you need to demonstrate a certain turnover of cars to qualify? I can't imagine anyone with a few privately-owned cars getting it - but I might be wrong, I just have mine on a normal group policy.

RJ
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MikeEdwards · Joined: 25 May 2011 Posts: 2705 Location: South Cheshire

I was always under the impression that motor trade policies were quite expensive and having a quick search around at least one site suggests that in order to qualify for a traders policy you need to provide proof that you're actually a trader. Having said that, Footman James seem to offer a motor trade policy that will also provide agreed value cover on your own cars.

Mine are on a multiple-vehicle policy, but I've not been happy with the valuation and they messed me about quite a lot this year over the renewal and trying to adjust the value, so will probably be looking around next year for someone else.

Rootes75 · Posted: Mon Dec 21, 2015 11:59 am Post subject:

My argument was that surely he had to prove he was a trader or at least prove there was a turnover in sales. One thinks he has gone headlong into his venture without any research.
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Various Rootes Vehicles.

ukdave2002 · Joined: 23 Nov 2007 Posts: 4236 Location: South Cheshire

Insurance premiums are based on risk; a trader policy will almost certainly be limited to activities connected to the business. It won't extend to private and leisure activities, unless it's an extension. There would probably be other restrictions such as cover for theft would only apply from the trading premises.

It's the same principle that allows a recovery truck to be MOT exempt, one can go to a breakdown and recover broken down vehicle all day, but nipping down to Sainsburys for a sandwich in a MOT exempt recovery vehicle would be breaking the law.

Dave

baconsdozen · Joined: 03 Dec 2007 Posts: 1119 Location: Under the car.

You can't use a traders policy to cover private use in a private car. If he's pulled up by the old bill (all too easy these days with NPR in cars and cameras) he will be in for a shock as no insurance is one quick way to get your car seized. I have no sympathy what so ever for those who bend the rules re insurance having been involved in an accident with some berk driving on a spurious policy.
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Thirty years selling imperial hand tools for old machinery(Now happily retired).

Jonv8 · Joined: 28 Jan 2009 Posts: 66