Motor trade
What proof of trade do I need for motor trade insurance?
The documents insurers commonly ask for as proof of trade for motor trade insurance, and how new or part-time traders can show genuine trading.
Insurers usually want evidence that you genuinely work in the motor trade, such as sales receipts, invoices, adverts or business records that show real trading activity. The exact list varies between insurers, but everyday paperwork normally does the job.
Why insurers ask for proof
Motor trade cover is broad. It can let you drive many vehicles under one policy. Insurers ask for proof that your trade is real, and that the policy is not being used simply as a way to insure a private car. Showing genuine trading helps the policy be set up properly and reduces the chance of problems if you need to claim.
Documents insurers commonly accept
Commonly accepted evidence includes:
- Vehicle sales or purchase invoices and receipts
- Adverts for vehicles or services you've placed
- Bank statements showing trade transactions
- Trade account records, for example from a parts supplier or auction
- Public liability insurance or a business bank account
Other paperwork that can help includes business cards, a website or social media page for your business, and registration details if you are a limited company. You can check company details on the official Companies House register.
If you are new to the trade
New traders can sometimes start with less and build evidence over time. It is worth keeping copies of every invoice, advert and receipt from day one, as this makes renewal easier. Requirements vary between insurers, and some are more flexible with newcomers and part-time traders than others.
Getting motor trade insurance quotes
With Kompare you fill in a short form about your trade. A specialist FCA-authorised broker from our panel then contacts you about motor trade quotes and can tell you what proof of trade they need. Read how we work, or start on our motor trade insurance page.