Cover for driving on trade plates
Trade Plate Insurance
Trade plates don't insure you. Tell us about your motor trade work and a specialist provider will call you back with a competitive quote — usually the same working day.
Who it's for
- Vehicle delivery & collection drivers
- Car dealers & traders
- Garages, mechanics & MOT stations
- Valeters & detailers
- Vehicle recovery operators
- Dealership & fleet staff
Quotes provided by a specialist authorised and regulated by the Financial Conduct Authority · No obligation · Part-time traders welcome
What is trade plate insurance?
Trade plates are temporary registration plates issued by the DVLA to people in the motor trade. They let you drive untaxed vehicles that are temporarily in your possession — a car bought at auction, a customer's vehicle in for repair, or a van being delivered to a dealership — without registering and taxing each one.
What trade plates don't do is insure you. A trade licence covers vehicle tax, nothing more. To drive vehicles on trade plates on public roads legally, you need a motor trade insurance policy that includes road risk cover — often called trade plate insurance. Rather than insuring one named vehicle like a standard car insurance policy, it covers you to drive and move vehicles connected with your motor trade business, and your cover is recorded on the Motor Insurance Database.
Trade plates vs trade plate insurance
The two get confused constantly. One sorts the tax, the other keeps you legal to drive — you need both.
| Trade plates | Trade plate insurance | |
|---|---|---|
| What it is | Temporary registration plates issued by the DVLA | A motor trade policy with road risk cover |
| What it sorts | Vehicle tax and registration for stock in your possession | The legal requirement to be insured on public roads |
| Issued by | The DVLA (form VTL301) | FCA-authorised insurers and brokers |
| Personal use | No — business journeys connected with your motor trade only | Policy-dependent — some policies can add your own vehicle |
| One without the other | Plates without insurance = driving uninsured | Insurance without plates = every untaxed vehicle needs taxing first |
What does a policy cover?
Third party only
The legal minimum. Covers injury to others and damage caused to other people's property and vehicles.
Third party, fire & theft
Adds cover if a vehicle in your possession is stolen or damaged by fire.
Comprehensive
Also covers accidental damage to the vehicle you're driving, whoever is at fault.
Depending on your motor trade activities, a broker can extend your policy with public liability insurance, employers' liability (a legal requirement if you have staff), premises and storage cover, or a combined motor trade policy that wraps road risks, liability and premises into one.
What affects your premium?
No two motor trade policies price the same. Insurers weigh up:
- Your age and driving experience — most insurers set minimums
- Claims history and any convictions
- The level of cover — third party only up to comprehensive
- What your work involves — delivery driving, dealing, repair
- The types and values of vehicles you drive
- How many drivers need to be on the policy
- Full-time or part-time trading
None of these rule you out — they just shape the quote. Be straight about all of them and you'll get a price that actually holds when it's time to claim.
How it works
- 1
Tell us about your trade
Complete the short form — what you do, the vehicles you drive, and when you need cover to start. Under two minutes.
- 2
We match you with a specialist
Your details go to a motor trade insurance specialist authorised and regulated by the Financial Conduct Authority.
- 3
Get your quote & get covered
They'll call to confirm details, talk through options and provide your quote. Cover can often start the same day.
Have this ready for your quote call
The callback is quick if you have the basics to hand:
- Your personal and driving licence details
- What your motor trade work involves, day to day
- Evidence of trading if asked — invoices, auction receipts
- Claims and convictions history for all drivers
- The level of cover you want
- When you need the policy to start
Frequently asked questions
Do you still need insurance with trade plates?
Yes. Trade plates only exempt you from taxing and registering each vehicle — they include no insurance whatsoever. Driving on trade plates without a valid motor trade policy is driving uninsured, which risks six penalty points, a fine and having the vehicle seized.
Can anyone get trade plate insurance?
No — you must be genuinely working in the motor trade. Insurers will ask what you do and may want evidence of trading, such as invoices or auction receipts. Most also set minimum age and licence requirements, typically 21 or over with a full UK licence.
Does trade plate insurance cover any vehicle I drive?
It covers vehicles connected with your motor trade that are in your possession or custody — stock, customer vehicles and deliveries. It's not a loophole to drive any car for personal use, and insurers can restrict vehicle types, so check your policy documents carefully.
How much does trade plate insurance cost?
Insurance costs vary with your age, driving history, the work you do, the vehicles you drive and the level of cover you choose. The honest answer is a personal quote, which takes minutes to request and carries no obligation.
Can part-time traders get cover?
Yes. Part-time motor traders — evening and weekend dealers, home-based traders — can get road risk cover, provided the trading is genuine. Some insurers even offer short-term or flexible policies suited to lower-volume trading.
How do I apply for trade plates?
You apply to the DVLA using form VTL301, and you'll need to show you're an established motor trader or vehicle tester. Insurance comes first, plates second — the DVLA won't help you if you're stopped driving uninsured.
Can trade plates be used for personal use?
No. DVLA rules restrict trade plates to journeys connected with your motor trade business — deliveries, collections, road tests. Personal journeys, commuting in stock vehicles and lending plates to friends are not permitted, and misuse can cost you the trade licence.
Can I drive any car with motor trade insurance?
Not quite. Road risk cover applies to vehicles connected with your trade that are in your custody or control — it isn't a blanket licence to drive anything. Policies commonly restrict vehicle types and values, so tell your broker what you actually drive.
Can I insure a young driver on trade plates?
It's harder but possible. Many insurers set minimum ages — often 21, sometimes 25 — and younger drivers pay more with fewer insurers to choose from. This is exactly where a specialist broker earns their keep, so mention driver ages when you request your quote.
Ready to get covered?
One short form, and a trade plate insurance specialist will call you back — usually the same working day.
Get my quote