Motor Trade Insurance - What documents do I need to provide?

If you apply for a Motor Trade insurance policy, you are likely to be asked to provide certain documents to verify that the information contained in your application is accurate. The exact documents will vary depending on the product and insurer you choose but the following information gives guidance on what you can expect.

A completed and signed proposal form

What is it?

A proposal form is a document completed and signed by the policyholder that confirms all the information that the policy cover and premium is based on. Everything from your name, date of birth and address to your previous claims history, the types of vehicles you deal with and the construction details of your property may be required.

Thankfully, most insurers have now replaced proposal forms with a Statement of Fact. These are similar to proposal forms but are pre-filled by the insurer with the information they already have. A Statement of Fact does not require a signature but should be checked carefully and returned to your broker if any information contained within it is incorrect.

Proof of No Claims Bonus / Proof of No Claims Discount

What is it?

No Claims Bonus (NCB) is earned for completing a full year with your insurance provider without any claims being made or recorded against your policy. Most insurers allow a discount on the premium they charge you, based on how many years you have been claim free. A typical discount scale available on a Motor Trade policy would be 10% for each year that you are claim free, up to a maximum of 50% / 5 Years.

In order to confirm your entitlement to the discount, you will be asked to provide a recently dated document from your previous insurer stating how many years you have, the expiry date of the policy and the policy number it was earned on.

Copies of your Photocard Driving Licence

What is it?

Exactly what it states – the photo card licence issued by DVLA when you pass your test &/or update your licence.

Insurers will ask for a copy of your licence to verify that a) you have a valid driving licence, allowing you to drive the vehicle categories covered under your policy b) your details such as name, address and date of birth match the details provided at inception. If your date of birth differs, this may affect the premium calculation and result in an alteration to the premium charged.

If your address does not match the address declared at inception, you may be asked to update your licence. It is a good idea to keep a copy of your old licence, along with the receipt from the Post Office or DVLA website showing your licence has been submitted for update.

A Licence Summary from the DVLA

From June 2015 the DVLA scrapped the paper counterpart of your driving licence and all new licence holders are now issued with a photo card licence only.

The information that used to be contained on your paper counterpart is now held online and can be accessed via the DVLA’s ‘Share my licence’ website. This service allows you to view your driving record including the types of vehicle you can drive & your penalty points or disqualifications.

Follow the instructions online to produce a code which you can pass to your broker (codes are case specific so ensure the code is exactly as produced), alternatively you can download a pdf summary which you can then forward to your broker. Your broker will check the licence summary against the information to ensure information such as your driving convictions match the information declared at inception.

Proof of Trading

What is it?

Motor trade insurance Stockport UK is a frequent target for fraudsters due to the multi-vehicle features of the policy. Fraud in the Motor Trade insurance sector results in higher premiums for genuine traders and allows criminals to profit from fraudulent applications.

As a result of the growing threat of fraud, insurers are increasingly likely to ask for proof of trading and it is a condition of most trade policies that you retain accurate records.

Motor Trade insurance is designed for those who earn an income by operating a Motor Trade business. Your trade may be buying/selling, repairing, recovering, transporting or valeting vehicles amongst others. Whatever occupation you are involved in, you should retain evidence of your trading activity in the form of sales & purchase receipts, copy receipts for work you have completed or your latest accounts.

As with all insurance, the documents required will vary depending on your product and insurer and may included extra documents not discussed here. If you are in any doubt, speak to your broker about what you need to do.

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