Plan Insurance Blog

Motor Trade Plates Explained

Many professions in the automotive industry entail collecting, transporting, or testing vehicles on public roadways. When motor traders have temporary control of many vehicles, taxing them individually can be time-consuming and costly. Fortunately, trade licence plates can help you avoid this difficulty while still meeting your road tax obligations.

Trade licence plates are temporary number plates that allow unlicensed cars to be driven for specified commercial activities, such as repair, demonstration, or transportation between locations. Motor dealers, for example, can use trade plates while transporting vehicles from one area to another for resale.

If your business buys, sells, repairs or modifies vehicles then Plan Insurance Brokers can source a tailored Motor Trade insurance policy for you. If you have any more questions or would like a quote call our expert team, request a call back or fill in a quote form.

Trade plates are issued by the Driver and Vehicle Licensing Agency (DVLA) and are mostly used by the following businesses:

  • Vehicle dealers, manufacturers, and repairers (including collection and delivery agents)
  • Trailer manufacturers
  • Valet parking and accessory fitters
  • Vehicle testers

Qualifying firms must first get a trade licence before applying for trade plates. Both can be applied for on the DVLA website. Businesses can only use trade plates for the purposes specified on their applications once they have been issued. These plates can only be used on vehicles that are roadworthy, insured, and have current MOTs.

Misuse of trade plates can result in a £5,000 fine, so it’s critical that firms strictly adhere to DVLA standards, especially those regarding how to display trade plates. Plates must not be placed behind the windscreen; instead, they must be displayed outside the vehicle, vertically, and easily readable from 18-22 metres. Furthermore, the first registration must not be covered.

While trade plates can assist motor traders in meeting road tax obligations, motor trade insurance can help guarantee they are sufficiently covered from a variety of business-specific dangers. Contact us immediately for more information on relevant insurance alternatives.

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