The Motor Insurance Database (MID) was set up to try and decrease the number of people that failed to take out adequate, if any, insurance for their vehicle. All vehicles that are insured have now got to be fully registered on the MID and this includes vehicles that are covered under a motor trade insurance policy.
The rules for traders are different to those of private policy holders so it is important that you make sure you fully understand what you need to do to ensure you don’t get pulled over by the police for driving a car that isn’t on the MID database . The responsibility for updating the MID lies with the trader. The MID must be updated with the details of vehicles within 14 days.
It is the fact that you have got 14 days to make the update that makes some vehicles ok to leave off the database. You don’t have to add cars that you are selling but will hold for less than two weeks. As well as this, any cars that are not taxed and are used with trade plates do not have to be registered – although trade plates must be registered.
Once a vehicle that you have registered on the database is no longer in your possession it is important that you make sure the MID is updated again. Failing to do this could result in you being contacted about a claim that is nothing to do with you. This would then result in your bonus being suspended until the claim is sorted out. In a worst case scenario you could lose your bonus permanently.
If you are unsure about any aspects of the MID or just want some general information about what you need to do then it is advisable to speak with your motor trade insurance broker who will be able to give you all the details needed.
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