Do Trade Plates Cover Insurance?

It’s crucial to remember that trade plates don’t cover insurance on their own. You’ve come to the right place if you’re seeking for high-quality trade plate vehicle delivery insurance.

What does a trade plate cover you for?

Motor trade plates indicate that a vehicle is being used for business purposes only temporarily. They are appropriate for any car in your temporary possession, allowing you to drive without first registering and taxing it.

What are the rules for trade plates?

Many jobs in the motor trade, from car dealers and repairers to vehicle testers, entail collecting and delivering vehicles or testing other people’s cars on public roads, for example after modification or repair, or during a test drive with a prospective buyer. Trade plates eliminate the requirement to register and tax every car you have in your hands for a limited time.

We answer some of the most frequently asked questions about trade plates.

A trade license must be applied for through the Driver and Vehicle Licensing Agency (DVLA). Trade licenses are valid for six or twelve months and expire on June 30th or December 31st, respectively. First-time applicants can acquire a license for 7 to 11 months. Go to to get the relevant forms and see the current pricing structure.

Trade plates should not be exhibited in any other location on a vehicle; for example, it is not possible to disguise the original registration plates and then display the trade plates in the car’s front windscreen.

Trade plates can only be used for the specific business for which they were issued. Using more than one vehicle under a trade license at the same time is illegal, as is keeping a vehicle on the road when it is not in use, unless in certain emergency cases.

For fraudulently modifying or using trade plates, the penalty is a maximum fine of £5,000 and a possible prison sentence of not more than two years.

Does trade insurance cover uninsured cars?

On a motor trader’s insurance coverage, it is feasible to drive an uninsured car, but that car would then be considered insured. As a result, the response to whether you can drive an uninsured car or other method of transportation at any time simply because you have a trader’s policy is false. The devil is in the details and language of the existing policy you have. Always call your insurer’s hotline if you have any questions or don’t understand something.

Failure to do so may result in legal action being taken against you. What exactly are these particulars? The specifics of any insurance, as well as an uninsured car that you intend to drive and cover under your current policy, will most likely be contained in two subparagraphs. The first is whether you informed the insurer about the inclusion of this car by directly informing them or adding it to the Motor Insurance Database (MID), and the second is the type of vehicle. Is it protected under your coverage, whether it’s under tonnage, above tonnage, or type? Naturally, having the ability to drive any car for a customer is one of the benefits of a Trader’s policy.

Fines, Vehicle Impounded, Destruction?

In most nations throughout the world, driving without insurance is a serious offense. Because of the intrinsic expense of big or even low claims, if the other party does not have proper insurance, it must be retrieved from that person’s finances and assets. Because not everyone has the financial means to pay a claim in this manner, motor trade insurance is required across the board. A common scenario cited by select motor traders is that they were taken off guard by the ambiguity surrounding the ability to operate non-taxed or uninsured automobiles on a temporary or short-term basis. However, if you verify the insurance documentation first, there is no genuine confusion. There may be clauses stating that a vehicle must be registered on the MID before it may be driven or added to your stock / fleet. If this isn’t done, the vehicle isn’t regarded insured on rare occasions.

If the vehicle belongs to someone else and they have insured it but have forgotten to transfer registration, this could be a major issue because the prior owner’s insurance may no longer cover the vehicle. In which scenario, failing to add a vehicle to MID and failing to confirm the registered owner before driving could result in a fine, the car being detained, and the vehicle being destroyed or auctioned if further documentation is not provided.

Can You Drive Any Uninsured Car On Any Trader’s Policy?

There are various circumstances in which you may be in possession of an uninsured vehicle, but you would be unable to drive it, making it of little use to a trader. If a car is deemed stock at a dealership, has a valid Statutory Off Road Notification (SORN), has been off the public roadways since February 1998, or has been stolen, destroyed, or exported, it is allowed to be uninsured. Neither of these scenarios would normally apply to a motor trader, despite the fact that your new fleet car is on its way. To summarize, yes, you can drive an uninsured car that was uninsured before you drove it, but is now insured because your motor trade insurance policy specifies it is. Furthermore, you must have informed the insurer of the addition and/or updated the MID. Trade plates are not provided by an insurer, but they can be covered by specialised trade plate insurance. They allow a trader to register a large number of vehicles for interim use while avoiding paying taxes on each one.

It is illegal to drive an uninsured car without third-party insurance that protects the vehicle while it is covered by the owner. Finally, and maybe most importantly, the vehicle you drive should be dedicated to your motor trade business. Taking Mum to Birmingham in your Dad’s car and driving her back to London would negate that.

Can you carry passengers on trade plates?

Because the purposes for which a trade license is given do not allow passengers to be conveyed on a business or personal basis, trade plates should not be placed on a vehicle that is carrying passengers for hire and reward.

Can I drive my own car on a traders policy?

The quick answer to the question of whether or not I can drive a car with traders insurance is no. You will not be eligible for traders insurance unless you own a motor trade firm, and you will be unable to operate vehicles that are not registered in your name. Having traders insurance, on the other hand, is not the same as having personal auto insurance.

Should trade plates cover number plates?

The Driver and Vehicle Licensing Agency (DVLA) and the Federal Transit Administration (FTA) have reached an agreement on new trade plate display guidelines. Members have been concerned about the situation for some time, especially after the car excise disc was removed. The revised guidelines will state:

  • Trade plates can be shown anywhere on a vehicle as long as they are visible and vertical from the front and back; they cannot be exhibited inside the vehicle due to reflections from the glass.
  • Because this could have a negative influence on road safety and enforcement, trade plates should not hide the vehicle’s existing number plates.

New guidance will be released in time for the renewal of trade licenses, and it will be updated on relevant trade license forms and the website. Motorbikes will be spared from the new guidance until a tested prototype trade plate is agreed upon, according to the DVLA.

Can you drive a car with no tax or MoT on trade plates?

You should not test drive a car with no MoT because it has trade plates; the only reason this vehicle can be driven is to and from a MoT or to check the car’s condition while it is being repaired. If you’re found by the cops driving it without a MoT, you could face serious consequences.

Can you drive a Sorn vehicle on trade plates?

Because a SORN is not transferable when a car is sold, if you buy a SORN automobile, you will need to SORN it again, as well as tax and insure it if you wish to drive it.

SORN cars with trade plates do not require road tax, and your motor trade insurance policy would cover the insurance. However, unless you’re driving a SORN car to or from a pre-booked MOT testing center, it’s still illegal to drive one.

Although it is not required by law for a SORN vehicle to be insured, it may be a smart idea to protect your investment. Some insurance firms offer special fire and theft coverage for SORN vehicles, usually at a lower rate.

What is it like being a trade plate driver?

There is generally plenty of work; you do not need to drive to work; most travel expenses are reimbursed if warranted; aborted or failed work that is not your fault is compensated (aborts); and no one gets on your back if you know what you are doing. You get to see places and things you might not see otherwise, as well as meet new people. You should make at least minimum wage and frequently more. In comparison to prior years, the staff’s attitude has improved. Some jobs are completed in a group in a rented vehicle. Days worked are flexible, but you must work at least 3 but preferably 4 days each week. You must plan ahead of time and communicate with customers. Vehicle inspection is included.

Do traders have to tax cars?

Lawgistics, a motoring legal business, has put together a Q&A with answers from the Driver and Vehicle Licensing Agency to the most frequently asked questions about the new Road Fund Licence (RFL) modifications (DVLA).

The RFL modifications went into effect on October 1st, and here is a list of the most frequently asked questions, as answered by the DVLA.

Q. How will a vehicle repairer know if a car is taxed for test drives now that paper tax discs are no longer required to be presented as of October 1st?

A. Check the car tax status at; but, if in doubt, use trade plates for day-to-day business; otherwise, an unknowing repairer could be penalised for driving an untaxed vehicle.

Q. When does it become the new owner’s responsibility to tax the vehicle?

A. Tax must be paid as soon as the consumer purchases a car and decides to become the registered keeper on the DVLA records. They don’t have to wait till the Registration Certificate (V5C) is in their name before they may tax.

Q. What happens to the tax on October 1st if a car dealer has cars in store with current and valid tax? These cars will be ‘in trade’ and have no current keeper.

A. Any car that is currently in the motor trade and has a valid tax disc will be taxed until it is sold. The current tax will be phased out at that point. If the car is recorded as being in the motor trade, no reimbursement will be given. A registered keeper must be listed on the DVLA database in order for a refund to be given. Since 2009, this has been the situation.

A. Yes, by utilizing V5C/2, either online at using the V5C/2 of the V5C, by phone at 0300 123 4321, or in person at a PO branch that handles car tax.

A. Beginning October 1, vehicles transferred to an auction firm will be tax-free. The seller will receive an automatic reimbursement once they notify the DVLA that the car has been sold. Before driving the vehicle away from the auction house, the buyer must tax it using V5C/2, which can be done online or over the phone, as indicated above.

Q. If a dealer has a valid tax disc, may they use current stock as “staff cars”?

A. No, dealers will have to register and tax the vehicle in their own names. If a dealer wants to utilize a vehicle for staff or personal reasons, they must always register it in their name. If the car is utilized for a legitimate “trade plate” reason, the present trade plate laws apply, and the vehicle does not require tax. Visit for further information.

A. Not yet, but the DVLA will do so soon. To tax, you do not need to be the registered keeper, as previously stated. You can start using the updated keeper supplement of the log book on October 1st.

Q. If a registered keeper does not request a refund when selling a car to a motor trader before October, would the outstanding duty be automatically refunded once the DVLA is notified of a new keeper after October 1?

A. Yes, if a new keeper notice is received after October 1st, an automatic refund will be made to the previous keeper.

A. No, SORN is not necessary if the vehicle is registered “in the trade” and kept on private property. A vehicle’s trade plates might be used to indicate its worth.

Q. Will an automobile that is now marked in trade and has a valid tax disc until sometime in 2015 still be valid if it is sold after October 2014?

A. No, the current tax will expire on the day the vehicle is sold after October 1st. The prior keeper will get any tax refunds. The trader must have registered the vehicle in their name by September 30th in order to collect the refund.

A. Currently, there is no method for a dealer to verify this. The DVLA is aware of automobiles stored in trade stock and is looking into how that information may be shared with dealers.

Q. What is the penalty for a registered keeper who drives a car without a proper license plate?

Q. How do you go about selling a PX/trade automobile to a trader who isn’t paying taxes on it?

A. The procedure remains the same. It is not necessary to notify the DVLA. If the vehicle is utilized on the road for test drives, deliveries, or other purposes, trade plates should be applied. A dealer is not required to tax a vehicle in their inventory unless they intend to use it as a staff car.

Q. Since trade discs are being phased out, can we 1) remove the triangular top portion from the front of the plate and destroy it, as we did with ordinary tax discs, on October 1st, and 2) remove the screw-held triangle top section from the back of the plate?

A. After October 1st, there is no necessity to display anything in the triangle holder.

A. No, before a car can be legally parked on the road, it must be registered to a keeper and taxed. If a vehicle is designated as “in trade,” it must be utilized for day-to-day business while wearing trade plates.