Do I Need to Notify You of Any Vehicles That I Get?
If I get any new vehicles, or sell any of my current vehicles, do I have to let you know, and if so, how do I do it? Find out below.
As a motor trader, you need to notify your Motor Trade insurance broker of every vehicle that is in your custody and control, and which is taxed and on the public highway, in order for it to be covered on your Motor Trade insurance policy. If you fail to let your broker know, and something happens to your vehicle which has not been added to your policy, then you may not be covered and may be left out of pocket. If your policy is with Think Insurance, then you can call us on 0800 221 8077 to add or remove vehicles to/from your policy.
Likewise, when you sell a vehicle you also need to let your Motor Trade insurance broker know so that it can be removed from your policy.
As you buy and sell vehicles, it is also worth remembering that you will also need to update the Motor Insurance Database every time in order to keep their records up to date.
The Motor Insurance Database is a central database of all vehicles in the UK with details of their ownership and insurance status. The purpose of the MID is to reduce the number of incidents of uninsured driving in the UK, which currently results in increased premiums for those drivers that do follow the law and insure themselves.
As a Motor Trader, it is your responsibility to notify the MID and keep it up-to-date with all vehicle changes in your business. If you fail to do so, and it is discovered, your Motor Trade insurance policy can be cancelled and you could even face prosecution and a possible fine of up to £5,000.
You NEED to notify the MID of the following:
- Any vehicle that you own
- Any stock vehicle being used for Social, Domestic or Pleasure purposes
- Any ‘Trade Plate’
This will also include any new additions, any deletions or any change of registration details.
You DO NOT need to notify the MID of the following:
- Customer vehicles in your custody to be fixed, cleaned, serviced, sold or stored
- Your own stock vehicles being sold or for resale i.e. any that are used with trade plates, and not for personal use
- Any vehicles driven with Trade Plates – though the Trade Plate number(s) must have been notified to the MID
Your MID records can be updated easily and quickly online. Different insurers may have different processes for how to do it so for more information on exactly how to update your MID details, check out our MID page.
Depending on the insurer of your policy, you have between 24 hours and 14 days to update the MID every time you buy or sell a vehicle.
Remember it is your responsibility to keep your own records up-to-date and you need to retain these for 7 years.