What proof of trade do I need for motor trade insurance?
Insurers usually want evidence that you genuinely work in the motor trade — things like sales receipts, invoices, advertising or business records that show real trading activity.
Documents insurers commonly accept
Because motor trade cover is broad, insurers ask for proof that your trade is real and not just a way to insure a private car cheaply. The good news is that everyday business paperwork usually does the job.
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, eg from a parts supplier or auction
- Public liability insurance or a business bank account
New traders can sometimes start with less and build evidence over time. Requirements vary between insurers, so it's worth comparing quotes — some are more flexible with newcomers and part-time traders than others.
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What if I'm brand new and have no trading history yet?
Some insurers cater for new traders and accept limited proof, such as a business bank account or first adverts. Compare brokers, as flexibility varies a lot.
Do I need to be VAT registered?
No. VAT registration isn't required for most motor trade policies. It can serve as proof of trade if you have it, but plenty of small traders aren't registered.
Can a trade account at an auction or parts supplier count?
Yes. Records from motor auctions or trade parts suppliers are useful evidence of genuine trading activity and are commonly accepted.