Part Time Motor Trader Insurance

Part-time motor traders work in the motor trade industry, but often have another job or main occupation.

If you have a primary occupation but work a side business in the motor trade, then you will still need part-time motor trade insurance. Equally, those who are retired but occasionally work in the trade also require this cover.

Part time motor trader activity includes:

• Selling cars in addition to your main job
• Repairing or servicing vehicles for profit
• Working from home to service or repair cars

Your part-time traders’ insurance provides cover for driving customer vehicles, and vehicles you own in the trade.

Who needs part time traders’ insurance?

Anybody working in the motor trade – even on a part-time basis – needs insurance by law. This includes traders who:

• Buy and sell vehicles
• Service and repair vehicles
• Work as a mobile mechanic
• Collect vehicles and deliver them
• Recover vehicles from the roadside
• Carry out valeting work
• Fit tyres
• Work in any other motor trade business

What insurance do part time traders need?

Road risk insurance

Most part-time motor traders typically require road risks insurance. A road risks insurance policy allows you to drive vehicles in your possession, including customer vehicles you are working on, or vehicles you have purchased.

Road risks insurance works in a similar way to standard motor insurance. You can get cover on a third-party, third-party fire and theft, or comprehensive basis.

• Third-party only – covers injury or damage to other people or their property (including their vehicle), but provides no cover for the vehicle in your possession
• Third-party fire and theft – provides the same cover as third-party only insurance, but adds fire damage or theft cover for the vehicle in your possession
• Comprehensive cover – adds cover for the vehicle in your possession to third-party fire and theft cover

Road risks policies allow you to add or remove vehicles from the Motor Insurance Database (MID). This is useful if you plan to buy vehicles to sell at a profit; you can cover them on your motor trade insurance.

Buy a road risks policy and you can also cover commercial vehicles. We often find part-time motor traders also work as builders, plumbers, or decorators, so it is the perfect opportunity to get your trade van insured too. Just let us know so we can add it to your policy.

Demonstration cover

You can also add demonstration cover to your policy, allowing potential customers to test drive vehicles you are selling.

Another cover worth considering is public liability insurance. This policy protects you against claims from members of the public for alleged injury. The legal costs of defending claims or paying damages can be huge, so this cover is recommended.

Employers’ liability insurance usually comes as part of a package with public liability insurance. Employers’ liability cover is a legal requirement if you employ anybody else (e.g. a mechanic or a driver).

How much does part time motor trade insurance cost?

It is easier to get a cheap part-time motor trade insurance policy than a traders combined policy. Prices start from just £8.73 a week for a road risks policy, but this will vary depending on factors including:

• The location of your business
• Your driving and claims experience
• How long you have worked in the motor trade
• The type of business you run
• The number of vehicles you sell or service

To find the best value insurance from our panel of insurers, we’ll need to get a good understanding of your motor trade business. Call us so we can arrange an individual quote.

Get a quote for part-time motor trade insurance

Speak to our expert team for further help and advice on the covers we have available for part-time traders on 01625 854458, or request a quote online.

Moving from part time to full time

Most part-time traders work from home initially. It makes sense to do this at the beginning, to build up experience, gain customers and see how easy it is to make money.

The more successful you are working from home, the more likely it is that you will need extra space to work or store vehicles.

So, if your part-time business grows, the natural move is to review your options to:

• Rent a lock-up facility
• Lease some land
• Rent or own your own garage or showroom

When this happens, you may need a traders combined policy, which covers more than just road risks, protecting business premises, stock of vehicles and tools as well.

Many part-time traders can still benefit from these additional covers. Our advisers can let you know the best insurance for your needs.

How to save money on traders’ insurance

You can save money on part time traders insurance by:

• Transferring your no claims bonus from your private motor policy – to get your business up and running
• Building your no claims bonus on your motor trade policy
• Limiting the number of vehicles you sell or work on
• Increasing your policy excess (and buying our optional excess protection policy)
• Taking out comprehensive insurance – it’s not always more expensive than third-party only, and could save you money if you have an accident

And the number one money saving tip? Compare part time motor trade policies from different insurers with Bollington! Talk to us once, and we’ll search our panel of insurers for you. No more endless phone calls and texts – just one company does it all for you.

Frequently Asked Questions