Are you under 25 and looking for motor trade insurance? Chances are you’ve already discovered that this can be a challenging task. To stay compliant as a young professional starting out in the industry, you will need a specialised policy tailored to the particular needs (and risks) of younger drivers.
At Tradex Insurance Services, we make it easier for young motor trade professionals aged 18–25 to access the cover they need, with flexible and affordable options designed to help you start your career right.
How Old Do You Need to Be to Get Motor Trade Insurance?
There isn’t an official minimum age for getting motor trade insurance, however at Tradex Insurance Services we require you to have held a full license for 12 months to able to access coverage.
That said, most insurers – treat under-25-year-old drivers differently to those over 25 because of the inherent risks of lack of experience in the field and less time behind the wheel. You just haven’t had long enough to prove your road smarts!
Adding further difficulties, many motor trade insurers won’t even provide insurance for 18 to 21-year-olds, and some place restrictions on the type of cover they’ll provide to you up to 23 years old. For example, if you’re a young entrepreneur starting up a motor trade venture for the first time as a 19-year-old, some insurers will offer you coverage for basic road risks but won’t cover your business premises.
Here at Tradex Insurance Services, our approach is designed to help you find policies to suit your needs. If you’re a keen young motor trade professional, we want to ensure you’re covered and compliant at an affordable cost. You should, however generally expect to pay more than an experienced motor trader would. The risk level of your business, your experience in the trade or related roles, how many years you have behind the wheel, your driving record and more will all be considered.
Motor Trade Insurance for 18 to 21-Year-Olds
Seeking motor trade insurance for the first time as an 18, 19, 20 or 21-year-old is often costly but not impossible. Usually, at this age, you’re only just starting out in your career and won’t have many years of experience in the trade or even many hours behind the wheel. So, insurers are generally taking more of a risk by covering you.
Many motor trade insurers will flat-out refuse to cover 18 to 21-year-olds, but here at Tradex Insurance Services, we take a flexible approach and will assess your circumstances and needs on an individual basis. Sometimes, it suits young motor traders to opt for a higher excess option to keep their premium down. While cost can put some young traders off, starting your career off-compliant is well worth it. It means you’ll have a good track record, and you can look forward to paying a lower premium as the years go on.
To avoid the higher costs of young motor trade insurance, consider gaining some trade experience in a lower-risk role, such as working in a garage. If you also maintain a clean driving record, you’ll be looking at much lower rates by the time you apply for insurance in a few years teams. See more tips on lowering your premium below.
Tips to Reduce Motor Trade Insurance Costs for Under 25s
Keep a clean driving record
A clean driving record will put you in good standing for reduced motor trade insurance costs. The longer you’ve been driving, the better, and having taken advanced driving courses will be looked upon favourably, too.
Start in a low-risk trade
Some motor trade operations carry more inherent risk than others, and people in these professions generally pay a higher premium regardless of age. For example, starting in a role that requires less driving time or driving only lighter vehicles may help keep your motor trade insurance costs more manageable.
Minimise external risk factors
Consider removing risk factors outside your age that are within your control. For example, operating your business in a safe neighbourhood with a low crime rate can bring down your premium, as can installing additional security measures like a telematics system or dashcam.
Bide your time
We know it’s never what you want to hear when you’re young, but sometimes patience is a virtue! The longer you’re in the trade, the lower your premium will be. If you’re not quite ready to strike out on your own, consider starting wherever you can in the industry, even if it’s working for someone else in a job that’s not your final goal. You’ll gain experience and reap the long-term benefits of a lower premium later on.
Start out as an employee
As mentioned above, your premium will continue to decrease the longer you’ve been in the business and the more experience you’ve gained. It can be more economical to build up that expertise as an employee of a company that will cover you with their insurance policy while you’re starting.
Check out this article for tips for reducing your motor trade insurance premium.
Benefits of Choosing Tradex Insurance Services for Young Driver Motor Trade Insurance
While it may be more challenging than it is for experienced drivers, getting the right motor trade insurance is essential for under-25-year-olds. It’s the only way to stay compliant, and in the long run you’ll reap the benefits of starting your career with proper coverage. For more information on cover check our policy documents here: [Insert Link],
Wherever you’re starting in the motor trade – whether as a car dealer, mechanic, valeter, or some other niche – Tradex Insurance Services strives to find motor trade insurance that’s right for you. We’ll listen to your needs, consider your personal circumstances, and provide a policy that sets you up for the future in the early stages of your career.
Request a quote today.