Motor Trade Insurance Policies for the Under 25s
Young drivers are often the hardest hit by insurance costs – but what happens if an under 25 year old works in the motor trade industry and needs to drive a vehicle as part of their work? Many motor traders don’t know how younger drivers affect their insurance costs so Unicom is here to tell you all you need to know.
Motor trade insurance protects anyone working in the motor trade industry – repairing, maintaining or selling vehicles. And as long as you have held a full UK or European driving licence for 12 months, you are eligible to be insured on a motor trade insurance policy. That means a driver who passes their test at the age of 17 could be insured on a motor trade insurance policy at the age of 18.
But Will This Bump up Your Insurance Costs?
Insurance for younger drivers often costs more because younger drivers are statistically more likely to have an accident than older drivers. According to road safety charity Brake, 18 year old motorists are three times more likely to be involved in accidents than 48 year olds. Add to that the fact that one in five new drivers has a crash within six months of passing their test and you’ll understand that the high insurance costs for young drivers reflect the higher risks they pose. So it is possible that your premiums will be higher if you need to insure younger drivers.
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Finding a Policy that Covers the Under 25s
Although under 25s may struggle to be accepted onto a policy, select insurers offer policies that are tailored towards the needs of young motorists working in the motor trade industry. Unicom, for example, offers a 22 to 25 motor trade insurance policy to help young entrepreneurs and motor traders get started in the industry.
Each policy can include the same features as an over 25’s motor trade insurance policy, including road risks insurance, liability protection and premises cover. However, young drivers should beware that the insurance company may impose certain restrictions. For example, drivers under 25 could be limited to driving vehicles with an engine capacity under 2,000cc or be forbidden from driving high performance vehicles and vehicles with a certain trim prefix.
Unicom will also look at the policy at renewal and can start to reduce the restrictions depending on if the previous year was claim free.
And although it may cost more to insure young drivers on the policy, a good insurance broker will tailor the policy to your company’s exact needs to minimise expenditure and find the right policy for you.