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Motor Trade Insurance - Frequently Asked Questions

We have assembled a list of our most frequently asked questions. If you have any further inquiries please contact our friendly staff on the numbers above.

Questions and answers are arranged in the following groups, select the option that matches your query to go straight to those answers:

My questions is regarding:

More information can also be found here on our motor traders news blog.

Motor Trade Insurance - Am I Covered?

Your most frequently asked questions on the level of cover our motor trade policies provide.

Please note that custom policies can be 'tailor made' to suit your business, so please get in touch with us if you need advice on the numbers above

Are vehicles insured at my trade premises?

As standard, vehicles at the trade premises and within a 400m are covered TPO 'Third Party Only' but we may be able to extend this depending on your insurer, eligibility and cover required. Please call us to discuss in more detail.

Can I drive any motor vehicle?

Our motor trade policy will insure you to drive any of your own vehicles and vehicles in your possession for motor trade. Underwriters do restrict certain vehicles, this will vary from insurer to insurer

Does it affect my insurance policy if I have a trade premises?

We would need to be notified if you have a trade premises, it could well change your policy depending on the area and whether you would like the vehicles to be insured whilst kept at the business premises

What if I get a recovery vehicle?

We should be able to cover your recovery vehicle on the policy but we will need to advised of the weight and what the vehicle is being used for. There may be an additional premium.

Will you cover me to deal with salvage vehicles?

If you disclose this to us at inception we will look into insuring you with a company that may well be able to cover you when dealing with vehicle salvage, whether your buying category C & D’s to repair and sell on or to actively seek vehicles in order to salvage them

Can my drivers have social use?

This can be offered subject to referral of the full drivers details

Am I insured for sports and high performance vehicles?

All vehicles are on referral to the insurance company and even though there are flexibilities, there’s no guarantee they will cover any sports or high performance vehicle

Am I insured to drive abroad?

All the countries in Europe that comply with the EU 4th directive you will have the minimum cover required for that country. Alternatively you may have the option to purchase a green card, if this is the case please call us to discuss in further detail.

Can I drive a vehicle with no MOT?

Normally the vehicle has to be perfectly road legal to drive on the public highway but the only time you are permitted to drive a vehicle without an MOT is if you are driving it to a pre-booked MOT

If your vehicle doesn't have a current MOT certificate, you can only drive it to or from a pre-arranged MOT appointment. However, not having an MOT may have implications for the validity of your insurance.

Can I drive a vehicle with no road tax?

The only time a vehicle is permitted to be driven without valid road tax is when there are trade plates on the vehicle. You can apply for these from the DVLA, please see the form on our website

Am I insured to drive back from a motor auction in a vehicle I have just purchased?

Providing it’s an acceptable vehicle which is taxed and roadworthy yes, even though you haven’t notified us of the vehicle details you needn’t worry because you have up to 14 days to get the vehicle details updated to the MID. And in the unfortunate event of having an accident or being pulled over you will naturally be asked to provide proof vehicle ownership.

Will you insure a vehicle on hire purchase?

Yes, we will be able to cover any vehicles you may have which are on a hire purchase providing the agreement is longer than 12 months.

Will you insure my vehicle if it’s on a lease?

Providing it’s on a 12 month minimum lease agreement or more we are able to cover that vehicle.

Can I keep my car separately insured elsewhere?

Yes you are able to do this. We may have the possibility to mirror the NCB which is currently being used elsewhere but we will need to see evidence of this

Are vehicles insured whilst on the back of my recovery vehicle?

Vehicles may be restricted to TPO whilst being carried, but we are able to increase cover (subject to terms & conditions)

What vehicles are excluded from the motor trade policy?

All vehicles are subject to acceptance by the insurance company and may vary from insurer to insurer. If you have any query please call us to discuss it further, alternatively exclusions will be noted in your policy literature

Will you cover motor bikes?

We may be able to at an additional cost depending on the insurer but you will need to of held a full UK motorcycle licence for more than 2 years

Can I tow my caravan?

Yes but please bear in mind that it is only covered Third Party Only whilst attached

Motor Trade Insurance Policy Details

Insurance policies can be complicated. If you don't find the information you are looking for here, or in the section above, please call us on either of the numbers above to find out more.

You can also download insurance documents here

Can I increase my insurance cover mid-term?

Yes, in the event that you would like to amend your policy please call us so we can advise you accordingly

What options do I have available to pay for my policy?

We have a few options available in order to suit your needs. We are able to take full payment, half this month half next month at no additional cost or a deposit and 9 monthly installments (subject to APR). Please call us to discuss in more details

What is a co-insurance clause?

This is something applied to a policy when there are multiple claims or convictions and as a result the insurance company will apply a 10% co insurance clause so the excess that is payable in the event of a claim would be either the excess set on the policy or 10% whichever is greater. This applies to policies that are fully comprehensive, or making a claim for theft or fire on a third party, fire and theft policy.

If I lose my certificate can I get another one?

In the event of losing a certificate we can issue you another one but because it is a legal document we will require a lost certificate declaration form first

What are the conditions of the demonstration cover?

It is accompanied demonstration cover which consists of anyone named on the policy sitting in the passenger seat next to the driver whilst they test drive. The person test driving must also be over 22 years old and a held a full UK licence for a minimum of 1 year. This extension also excludes family members or anyone in the employment of the insured.

How long will it take to receive my documents?

Documents are emailed to all of our clients as soon as they are ready. Occasionally there is delay but we will always try our best to get them out to your as soon as possible. If you require them urgently please call us.

What if I want to cancel my policy?

You may cancel your policy, we will require your documents to be returned and you will be charged in accordance to the cancellation rates sets by your insurance company. Please see your policy documents.

Can I amend my policy?

Yes, providing we have received your Driving licence copies and your NCB has been verified we are able to do amendments to your policy. Please bare in mind that when doing any adjustment to your policy there is an administration charge of £50

What is vehicle indemnity?

The vehicle indemnity is the maximum pay out per incident that you’ve set on your policy for accidental damage, fire & theft policies

What do you require from me when I incept a new policy?

We will always require a deposit, driving licence copies and No Claims Bonus proof or details. Depending on the insurer we may also request proof of trading.

Do I Qualify For Motor Trade Insurance?

Do you qualify for a trade insurance policy? Find out more here, but please give our staff a call if you are unsure about your particular situation.

Will you insure a young driver?

Minimum age we will insure from is 25 years old. We are unable to insure drivers under 25 years old on our trade policies.

Do I need to disclose criminal convictions?

In line with the criminal rehabilitation act we would need all criminal convictions disclosed. In the even that you are unsure then notify us of the conviction and we can advise you whether it’s necessary to disclose

How long do driving convictions stay on my driving licence for?

Depending on the seriousness of the convictions and sentence depends on how long the driving conviction will last on your licence for. We need to know about all driving convictions within the past 5 years, If a prison sentence is attached we need to know in accordance with the rehabilitation act

Do I qualify for a motor trade insurance policy?

If you are working independently in the motor trade on a full or part time basis then you will qualify for a motor trade policy.

What if I have a medical condition?

Medical conditions won’t be a problem providing the DVLA have been advised and haven’t put any restrictions on your license. If you give us a full disclosure of the medical condition and  medication we will try and get you a quote, you would be subject to filling out a medical questionnaire

Do I need to provide ´Proof of Trading´ - POT?

You could be asked to provide proof of trading (POT) at any time, not just in the event of a claim so it’s advisable that you always keep any invoices and receipts

Claims Questions and Answers

Some information on our claims proceedures and services. With more information here and here and a claims form for Unicom customers here.

What happens in the event of a claim?

In the event of a claim please notify us straight away for the claims department to talk you through the process

What will happen if I don’t report a claim?

This could potentially be a breach of your contract and in the event of unnecessary costs occurring you could be asked to reimbursed this

In the event of a claim will you pay the motor trade value or retail value of the cars?

As a rule in the event of a claim the insurance company will pay out the motor trade value for the vehicle you are claiming against but the exception would be for a customer’s vehicle that you have in your possession

How long do I need to disclose previous claims for?

Most insurers need to have all claims disclosed within the past 5 years

No Claims Bonus Questions

Some information on our policies regarding NCB, or 'No Claims Bonus'. We can provide great discounts on your motor trade insurance using your private no claims bonus. Get a quick quote today for an exact figure on the discount you qualify for, or call us to find out more, or you can search our motor trade blog for articles on NCB.

Can I use my private or commercial No Claims Bonus?

Providing that the NCB is from an annual policy valid within the last 12 months we can use it, with the possibility of it being up to 24 months old. The NCB does need to be from a private policy or commercial vehicle policy.

What happens to my NCB if I have a claim?

In the event of having a fault accident you could lose your no claims bonus and if the claim is pending we would be unable to verify any NCB

Trade Plates Questions

Information about 'trade plates' and the cover you can expect from Unicom. Please browse our motor trade blog for more in depth guides and articles about trade plates, the relevant regulations in the UK and how to apply.

Will you insure my trade plates?

Yes we will cover you to use your trade plates at no extra charge on your motor trade policy

Can I drive a vehicle with no tax?

The only time a vehicle is permitted to be driven without valid road tax is when there are trade plates on the vehicle. You can apply for these from the DVLA, please see the form on our website

How do I get trade plates?

You need to apply to the DVLA for trade plates, please see an application form on our website

Miscellaneous Questions

If your question hasn't been answered here, please call our helpful and friendly staff on the numbers above or try searching our motor trade news blog for the information you need..

What is ´public liability insurance´ and do I have to have it?

If you have any employees then it is a legal requirement by law to have employees liability even though public liability is not but is certainly recommended

How do I update the MID (Motor Insurance Database)?

There’s a few different options available. Via fax, email, post or by simply entering the details online via our website

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