Picking up a criminal conviction whilst driving is something that most of us will do at some point during our time on the roads. In 2016, 5179 drivers managed to get banned for reckless driving, an increase of 29% on 2015 where only 1173 drivers were banned.
Convictions of any nature, whether through motoring or non-motoring, can have an impact on any type of insurance cover you wish to gain. This impact can be price related OR cover level related, sometimes it will have no impact at all.
Motoring convictions though are most definitely best avoided when working within the motor trade industry seeing as driving and cars are your job. Even more so if you are car sales. It would be a little embarrassing if you were not able to carry out a test drive through being banned!
Convictions and Traders Insurance
Offences related to motoring are often quite easily negotiated and won’t affect your ability to get cover a whole great deal and potentially just affect the price. Convictions related to non-motoring offences however can cause you more of an issue.
Criminal convictions are always relevant to any policy and should always be disclosed to a broker. Remember, the broker is not there to judge you, they are there to purely find the right policy for you that will cover you in the event of a claim. To not disclose a conviction could mean gaining another conviction for misleading the broker and not insuring properly.
Where a prison term was served, for those serving less than 6 months are required to disclose their sentence up to 7 years. For those who served more than 6 months are required to disclose their sentence for up to 10 years. This is outlined in the ‘Rehabilitation of Offenders Act”.
The insurer will work out and assess whether your conviction will play any influence on the risk associated with insuring you for your trader’s policy. If the convictions is completely un-related to motor trading and has no way of bearing any factor on the way you intend to trade, then it is unlikely to have that much of an effect on your policy.
Driving Convictions and Motor Trade Insurance
It goes without saying that driving convictions will be required to be disclosed as well. It is likely that these will have a greater effect on your policy as they are trade related and more relevant to your chosen income path.
Minor convictions such as SP30 (Speeding), CU10 (driving with a faulty vehicle such as lights or brakes), TS50 or TS10 (failing to observe traffic signals or lights) all usually carry 3 points but can be expanded depending on the severity.
These sorts of offences will generally remain visible to authorities for up to 4 years from the date of offence or if disqualified, from the date of disqualification. For insurers, this will often be restricted to 3 years.
Each insurer views these risks differently with some more happy to insure them over others. If you have multiple offences to your name, it may be harder to gain a policy if possible at all.
Serious convictions such as DR10 (Drink driving) or DG10 (Drug driving) stay on your licence for about 11 years and will make it extremely hard to gain an insurance policy. If you are able to gain a policy, it is likely to be quite expensive.
Gaining Traders Insurance with Convictions
Every conviction and circumstance is different. We always suggest contacting us to see if you can gain a policy and then if so, make informed decisions from there.