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Trade Plater Insurance

5 Things you need to know about Trade Plater Insurance

Trade Licence Plates are issued by DVLA https://www.gov.uk/contact-the-dvla and enable you to drive an untaxed vehicle. They are necessary for Vehicle Collection and Delivery Agents as most vehicle will be untaxed between owners

What do Trade Plates Cover?

The Trade Plate covers the Road Tax of the vehicle for the duration of the journey. This applies to Motor Trade Business use only. Typical journeys covered might be:-

  • Vehicle Demonstration
  • Vehicle Collection and Delivery
  • Movement Between Garages / Auctions
  • Delivering to a new customer (or collecting from an old one)
  • Road Testing
  • Social Domestic and Pleasure use is not permitted and therefore for such journeys the vehicle would be deemed to be untaxed (even if the trade plate was displayed)

Do Trade Plates Cover Insurance?

The Trade Plate itself does not provide any Insurance cover. It merely removes the need for Road Tax during the Motor Trade Business related journey. However, the Trade Plate number will be linked to your MID record. This will allow the Police to quickly establish that the vehicle being driven does in fact have a Motor Trade Insurance policy relating to it. You will have already purchased Motor Trade Insurance to apply for your Trade Plates.

Trade Plate Rules UK

You can be fined up to £5000 (or serve a prison sentence) for misusing your plates, so it is important to understand the rules when using them. You should research this thoroughly at The DVLA website https://www.gov.uk/trade-licence-plates

  • Trade Plates Can only be used on one vehicle at a time
  • They must be displayed at the front and rear and not cover the registration plate
  • You can only use Trade Plates on vehicles that are roadworthy / safe to drive
  • The vehicle must be Insured
  • The vehicle must have a valid MOT or be exempt from having an MOT
  • Trade Plate Insurance Cost UK

    The cost of Trade Plate Insurance will depend on the levels of cover required. The level of cover is usually determined by the people you work for. Some of the platforms will require you to have an Indemnity limit high enough to cover most vehicles, typically £50,000 and sometimes £100,000 (occasionally higher). The higher the indemnity limit the higher the premium. Of course, there are other many factors which affect the premium including many ways to save premium as well. Trade Plate Insurance is complex, and a good Broker will help you understand what cover you need but also look at potential savings where certain covers are unnecessary.

    How do I apply for Trade Plates?

    Trade Plate can be applied for via the Government Website https://www.gov.uk/trade-licence-plates/apply You will need to provide Proof of Motor Trade Insurance. As the Trade plate application usually takes around 2 weeks. We can forward date your Motor trade Insurance which saves wasting cover whilst waiting for your new plates to arrive.

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