Young Motor Traders' Insurance Under 25

For young workers under 25 in the motor trade industry come various challenges when securing young motor trade insurance. As with all types of insurance, being under 25 poses restrictions and several obstacles to jump over, as well as trying to understand just what young motor traders’ insurance is without being overwhelmed by lots of jargon. Luckily, Prime Cover is here to guide the next generation of motor traders and delve into the nuances of motor trade insurance, offering key insights and solutions.

Understanding Motor Trade Insurance for Under 25s

Young entrepreneurs under the age of 25 face specific challenges when seeking motor trade insurance quotes. Statistical data is used to calculate risks and premiums, and because of their age, these young individuals are often seen as high-risk by insurers, as young drivers are associated with a higher likelihood of accidents and claims.

A way to work around these expensive costs is to demonstrate responsible business practices and safe driving, helping to positively influence the cost of premiums and insurance eligibility.

Can You Get Traders' Insurance Under 25?

The short answer is – yes. However, insurance options may be more limited and premiums higher for new trade businesses compared to older, established motor trade companies. Fortunately, some insurers recognise the potential and entrepreneurial spirit of young business owners and offer specialised policies to cater to this demographic.

Under 21s Traders' Insurance

Unfortunately, the majority of the time, motor trade insurance providers won’t offer young motor traders’ insurance for under 21s. However, when policies are granted for under 21s, they often come with very high premiums and strict conditions due to the perceived increased risk of younger drivers’ inexperience. If you are under 21, it is advantageous to have a few years of experience in a sales role or as a mechanic under an established business.

Motor Trade Insurance for 23-25 Year Olds

As young traders age, their options for motor trade insurance increase but those within the 23–25-year bracket will still be seen as high risk. But, with a few more years of driving experience, the range of available policies broadens slightly, albeit often at higher costs than for more experienced traders.

Combined Trade Insurance for 23-25 Year Olds

Those between the ages of 23 and 25 can benefit from combined trade insurance. This insurance type covers both road risks and your premises, tools, stock and public liability, granting a more comprehensive safety net for young business owners.

Factors Affecting Motor Trade Insurance for Under 25s

It’s not just age that affects motor traders’ insurance for under 25s, other factors such as criminal convictions and years of driving experience are elements insurers consider when assessing risk levels.

Criminal Convictions

Any type of criminal record, especially for driving offences, can greatly affect the availability and cost of motor trade insurance. Insurers will view convictions as risk indicators, often leading to higher premiums or straight up refusal to provide a policy.

Years of Driving Experience

To put it simply, more experience behind the wheel means you will be highlighted as lower risk to insurers. If you have been driving since the UK legal age of 17, rather than say age 20, this will benefit you when insurers evaluate your coverage.

What Are the Cover Options for a Motor Trader's Policy Under 25?

Those looking for young motor traders’ insurance should explore the many options out there to find the right coverage types to make sure you’re not being charged for more than you need. Finding tailored policies can provide the necessary coverage while reflecting the individual’s business model and risk level.

Road Risk Insurance Protection

Motor trade road risk insurance is protection for damage caused to other people’s property when driving your vehicles. Different types of road risk insurance include third party only, third party fire and theft and comprehensive.

Motor Trade Insurance

Standard motor trade insurance can include road risk but also extends to other aspects of the business, such as liability coverages, which are vital for protecting against claims that may arise during operations. Explore our blog – What is Motor Trade Insurance? – for more detail.

Motor Trade Combined Insurance

For those who work from a set business premises, combined insurance offers the most comprehensive protection. It covers not only road risks but also tools, machinery and stock, alongside liability cover, making it ideal for full-scale operations.

How Much Does Young Motor Traders' Insurance Cost?

Costs will vary from trader to trader, and age most definitely plays an important role in how much you will have to pay. The level of cover also affects the price, as road risk only compared to combined insurance policies will most likely be cheaper. As mentioned, being under the age of 25 will mean you will be paying more, but that doesn’t mean there aren’t some great tips for saving money on motor trade insurance premiums.

Tips include comparing your quotes, opting for a higher excess and having no criminal record or previous claims.

Bespoke Young Motor Trade Insurance With Prime Cover

The under 25 generation of motor traders is the future of the industry, and even though it can be challenging to find the right insurance for this age bracket, the difficulty can be alleviated with the help of Prime Cover.

We provide bespoke coverage based on your business needs and can get you set up with affordable policies, protecting you, your assets, employees and business as a whole. Get started by contacting our team. Call our experts on 01527 433 434 or send us an email to support@primecover.co.uk.