What is Motor Trade Insurance for Under 25s?
Motor trade insurance for under 25s is a specialist policy designed for young traders, mechanics, car dealers, or anyone under 25 working in the motor trade. If you’re starting out in the trade at a younger age, you may have already found that most insurers charge higher premiums—or won’t offer cover at all. A tailored motor trade insurance policy can help you get on the road, protect your business, and stay legal, even if you’re under 25.
While it’s true that insurance for young motor traders can be harder to find, there are providers who specialise in helping younger business owners and employees. Getting the right policy means you can focus on building your experience, not worrying about your insurance.
With the right cover, even new and young traders can stay protected and prove themselves in the motor trade.
What the experts say…
“Motor trade insurance for under 25s isn’t always easy to find, but there are options. Take time to compare, be upfront about your experience, and invest in good security. With the right approach, even young traders can get cover that works—and keep costs manageable as you build your career.”
– Ian Beevis, Founder of Clean Green Compare
What’s Covered by Motor Trade Insurance for Under 25s?
Cover for motor traders under 25 works in much the same way as standard motor trade insurance—but with a few age-related restrictions or higher excesses. You can arrange policies to cover road risks (so you can drive customer vehicles), liability, your tools, and business stock. Some insurers may limit the types of vehicles you can work with, but there are usually options for most legitimate trades.
- Road risks insurance – Lets you drive customers’ vehicles or stock cars for business, with limits for age or experience.
- Public liability insurance – Protects you if someone is injured or property is damaged because of your motor trade business.
- Employers’ liability insurance – Required by law if you employ anyone, even casually, under 25 or otherwise.
- Tools and equipment cover – Covers your kit, tools, or diagnostic devices for loss or theft—even if you’re a mobile mechanic.
- Premises cover – Protects your garage, workshop, or unit against fire, theft, and accidental damage.
- Business stock cover – For vehicles or parts you keep for resale.
Policies for under 25s often have higher premiums and may come with extra conditions—so it’s important to check the small print before you buy.
Optional Extras for Young Motor Traders Insurance
You can customise your motor trade insurance under 25 policy with add-ons that fit your business. For example, delivery and collection work may require goods in transit insurance, while breakdown cover can be vital if you’re often on the move. Some insurers also offer policies that include personal accident protection for young traders.
Protection if you move vehicles, parts, or equipment between jobs or customers.
Covers the cost if you have to defend yourself or your business against a claim.
Great for young mobile mechanics or dealers who need to recover vehicles, with options for the motor trade.
Pays out if you’re hurt and can’t work as a result of your motor trade activities.
Cover if your trade occasionally takes you across borders.
Extras will affect your price—so only add what you really need for your day-to-day work.
What’s Not Covered Under Young Motor Traders Insurance?
Insurance for young motor traders under 25 usually comes with some specific restrictions. Most policies won’t cover personal use of vehicles, high-performance or rare vehicles, or anyone not named on your policy. Some insurers won’t insure drivers under 21, or they’ll set strict limits for very new licence holders. Not declaring claims, convictions, or business changes can also void your policy. Always double-check your exclusions—especially around age or driving experience—to avoid nasty surprises if you need to make a claim.
- Personal use of vehicles – Your policy only covers business use, not social or family trips.
- Unlisted drivers – Only drivers named on your insurance are covered, regardless of age.
- Poor security – Claims may be denied if your site or vehicles aren’t protected as required by your policy.
- High-performance or restricted vehicles – Some cars (especially sports or luxury) may be excluded for under 25s.
- Undeclared convictions or claims – Not being upfront about your driving or claims history can result in a rejected claim.
Who Needs Motor Trade Insurance Under 25?
If you’re aged 17-24 and earning money through buying, selling, repairing, valeting, or delivering vehicles, you’ll usually need a specialist policy. Government guidelines on being a car dealer make it clear that insurance is a legal requirement if you move or work on customer vehicles—even if you’re young or just starting out.
- Young car dealers or traders – Anyone under 25 buying and selling cars for profit, even part time.
- Apprentice and trainee mechanics – If you need to drive customer vehicles or trade cars as part of your job.
- Mobile mechanics under 25 – Young people fixing or servicing vehicles for payment, on the road or at home.
- Under 25s working in family or local garages – Including helpers, detailers, valeters, or anyone earning through motor trade activity.
- Delivery agents or collection drivers – Young drivers moving vehicles between sites, auctions, or customers.
If you’re earning from any activity in the motor trade and you’re under 25, dedicated insurance is a must to stay protected and avoid legal trouble.
Get Motor Trade Insurance Under 25 Quotes Today
How to Get a Motor Trade Insurance Quote for Under 25s
Getting a quote for motor trade insurance under 25 can be straightforward if you’re prepared. Explain exactly what you do, how often you work, and who needs to be covered—insurers need honest details to find you a suitable policy. The more detail you provide, the easier it is for an insurer to help you find motor trade insurance that fits, without any hidden age surprises.
How Much Does Motor Trade Insurance Under 25 Cost
Young motor traders can expect to pay more than older, experienced traders—because statistics show drivers under 25 are more likely to claim. The type of vehicles you handle, your business size, where you trade, and your driving record all matter. Adding extras like goods in transit or breakdown cover will also affect your premium.
- Your age and driving history – Younger drivers and those with claims or points pay more.
- Type of business – Car sales, repairs, and mobile work all have different risk levels and premiums.
- Vehicles you handle – High-performance, modified, or rare cars increase the cost.
- Your business location and security – Urban or high-risk areas, or less secure premises, mean higher premiums.
- Number of drivers – More under-25s on a policy increases the price.
- Extra cover options – Each add-on, like legal expenses or breakdown, adds to the total.
- Your voluntary excess – A higher excess (what you pay if you claim) can lower your premium.
Comparing quotes is the best way to find affordable motor trade insurance for under 25s—and helps you avoid paying more than you need to.
Ways to Save on Motor Trade Insurance Under 25
While you can’t change your age, there are ways to cut the cost of motor trade insurance under 25. Stick to standard vehicles, improve your security, limit the number of young drivers on your policy, and build up a no-claims bonus.
Young motor traders who take time to review their options and shop around every year are more likely to find competitive insurance—even under 25.
FAQs – Motor Trade Insurance Under 25
Can I get motor trade insurance under 25?
Yes, motor trade insurance under 25 is available—but it’s more specialist and often comes with higher costs or extra conditions. Some insurers accept drivers from age 21, but the widest choice is from 23 or 25. It’s important to compare quotes and check for any age-based exclusions.
What is the cheapest way to get motor trade insurance as a young trader?
The cheapest motor trade insurance under 25 is usually found by sticking to standard vehicles, limiting the number of young drivers on your policy, improving security, and paying annually if possible. Always compare multiple providers to find a deal that works for your situation.
What documents do I need for a motor trade insurance quote under 25?
To get a quote for motor trade insurance under 25, be ready to give details about your age, business type, driving history, vehicles, and any other named drivers. Being honest and thorough helps you get the right policy.
Can I get motor trade insurance under 21?
Most insurers only accept motor traders from 21 or older, and even then, options are very limited and expensive. If you’re under 21, speak to a specialist broker for advice and be ready for higher premiums and stricter terms.
Will motor trade insurance under 25 cover me to drive any car?
Not always. Most motor trade policies under 25 only cover you for business use, and some vehicle types (high-performance, classic, or luxury) may be excluded. Always check your certificate and policy documents before you drive.
Can I add older drivers to my under 25 motor trade policy?
Yes, and this can sometimes help lower your overall premium. Adding experienced drivers with a good record to your policy can balance out the risk—just make sure all drivers are named and properly declared.
