What Is Part-time Motor Trade Insurance?

Part-time motor trade insurance is ideal for those who have another occupation outside of the motor trade or are retired. It could be someone who has another business and acquires and sells vehicles in their spare time or renovates vehicles for resale as a hobby.

Every motor trade business is different, but if you are operating either from a business premises or from home, you will want to secure the appropriate part-time motor trade insurance to protect vehicles you are driving or working on, as well as any tools, equipment and stock.

Whether your involvement in the motor trade is something you do at the weekends or in the evenings to supplement your other income, an experienced motor trade broker will tailor-make a single policy with all the necessary protection in place.

Who Needs Part-Time Motor Trade Insurance?

Whilst part-time motor trade insurance may not be significantly different from full-time motor trade insurance, it can be necessary for part-time occupations such as vehicle maintenance, servicing, MOT testing, valeting, tyre and exhaust replacement, sales and any kind of vehicle restoration work including classics and vintage vehicles.

Generally, a part-time motor trader will have another primary occupation and deal with a smaller number of vehicles than would be expected of somebody full-time in the trade. In either case, whether it is part-time or full-time, you still need adequate insurance.

As part of your motor trade insurance policy, you will almost certainly need road risk insurance to cover your own permanently owned vehicles, those you are working on, test driving, delivering to a customer, driving home from an auction or intending to sell on.

In addition, if you are purchasing and selling vehicles on a part-time basis, a relevant insurance policy will allow you to register vehicles with the Motor Insurance Database (MID) and remove them when necessary.

In many cases, other occupations or vehicle uses can also be added.

What Cover Can Be Included?

Once a dedicated motor trade insurance broker has understood your insurance needs, they will create a single and affordable policy to cover everything your part-time business needs. Cover can include:

• Vehicles at your premises

• Goods and vehicles whilst in transit

• Vehicle storage and refurbishment

• Vehicles away at sub-contractors premises

• Vehicles kept under SORN and those in the course of restoration can be covered for fire, theft and accidental damage

• Vehicles that are rarely driven or driven to display meetings

• Often, family vehicles can be included for social, domestic and pleasure use or other disclosed business or professional uses

These are some of the most common forms of protection associated with part-time motor trader insurance:

Road risks insurance: provides insurance for you to drive cars in your possession, including customers’ cars, those you are selling, or recently purchased vehicles.

Demonstration cover: if you are selling vehicles part-time, demonstration cover insures customers to test drive cars off-site.

Tools in transit cover: protects tools and equipment you store in your own vehicle from theft, loss, and damage.

Employers’ liability cover: if you employ anyone, this cover protects you against claims relating to accidents and injury while at work.

Public liability cover: like employers’ cover, this protects you from public liability claims relating to injury, accidents, and damage to personal property.

Premises cover: provides insurance to cover the cost of repairing or rebuilding your premises in the event of fires, floods, and other damage. In some cases, this may also extend to contents cover.

Refurbishment and restoration: insure vehicles you own from theft, damage, and fire.

Road Risk or Combined Insurance?

Which type of part-time motor trade insurance policy you choose will depend on your business type.

If you do not own your own premises, it may be that part-time road risk insurance is sufficient for your needs. It will cover you for vehicles you are working on or those which are noted as part of your stock if you are running a car dealership.

As with private or full-time road risk insurance, there are three levels of policy available: third party, third party, fire and theft, and comprehensive. You will need to take third-party as the legal minimum but this will only cover you for at-fault damage to another person’s vehicle, not your own.

If you operate from a premises such as a workshop, lock-up garage, a small forecourt or a service and repair station, you might want to consider a part-time motor trade combined insurance policy which includes coverage for tools, the building, money, equipment, machinery, and business interruptions.

A good part-time motor trade insurance policy will be adapted to match your daily activities, as well as pre-empting any expansion plans in the future. As your company expands, a good insurance broker will look into providing more insurance coverage to match your needs.

Liability Insurance

Whether you work from home or on-premises, public and product liability insurance may be a consideration. With public liability insurance, you will be protecting yourself from claims of alleged injury from members of the public should they be injured or their property damaged while on your premises. For example, if they trip over some equipment lying around and break an ankle, or you accidently knock a cup of coffee over their laptop.

Product liability insurance can be useful if you are fitting new parts to vehicles or giving advice. If a part were to be faulty and cause damage.

If you have employees, even those on casual contracts or part-time, you will need employers’ liability insurance as a legal standard.

Reducing Motor Trade Insurance Costs

If you are working part-time to supplement your income, topping up your pension or are simply a hobbyist who likes to renovate classic cars in their spare time, you do not want to be spending out more than you make on a motor trade insurance policy.

Here are a few ways to keep your insurance costs lower as a part-time motor trader:

1. Contact a specialist broker in trade cover: Looking at online comparison sites may give you a cheaper deal but it might not give you the protection you need or you may be paying for motor trade insurance you do not need. Choose an insurance broker with decades of experience that can advise on exactly what your part-time business needs now and what may be of use in the future.

2. Age and experience: The most cost-effective policies will always be where there are no claims and the drivers have low or, ideally, no convictions. Also, if you are a younger driver, this can be expensive. Tradex is always supportive of those just starting out in the motor trade business. Do mention any private car insurance no claims bonus, as this may well be carried on to your new trade policy with a future bonus at renewal or claim time.

3. The type of vehicle you work on: If your part-time motor trade business involves repairing and fixing up classic, vintage or sports cars, you could see your policy being more costly. Sports cars can be powerful and therefore more prone to collisions, while sports, vintage and classic cars are all highly sought after by thieves. If your vehicles are not locked away in a secure unit, they could be a target, especially if parked on your driveway. Installing a good home security system, some deadlocks and a fence could pay dividends overall.

4. Payment annually: It may seem obvious, but if you can afford to make your policy payments up front, you will get a significantly better deal than if you pay monthly.

Aside from the cover specifics, insurers may also consider the following:

· The location of your premises

· The type of motor trade business you carry out

· The size of your business, such as how many cars you sell or work on

· The value and age of your vehicles

· The value of your tools and equipment

· Your claims history

Flexible Motor Trade Insurance for Seasonal Workers

Motor trade insurance for seasonal workers is generally different from that of part-time traders. If you offer a seasonal element to your business, such as operating during the festive period or over the summer, you might want a policy that offers laid-up cover. This means keeping your vehicle or vehicles off road or having a Statutory Off-Road Notification (SORN).

It will generally be expected that your vehicle or fleet is kept in a garage or secure building during storage. A laid-up policy should include accidental damage, fire and theft.

Similar to part-time motor trade insurance, you will still need road risks cover for the time that your vehicles are on the road and it may be worthwhile investing in a short-term liability insurance policy to protect you against injury and personal accident claims.