In many cases, insurance companies see part-time traders as a higher risk than full time. They generally aren’t working as often and are more liable to mistakes. This potentially means more claims being made.
When it comes to smaller and part-time traders, more than 75% dealt with by Bollington Motortrade are car dealers or mechanics. Often, traders of this size will do a mixture of mechanical work and selling motors. Others who commonly take out part time motor trade insurance include valeters, breakdown recovery operations, collection and delivery drivers.
What kind of cover do you need?
As a part time trader, chances are you are working from home. If you buy, sell, repair or valet vehicles from home on a part time basis, then Road Risk Only cover will generally suffice. This will cover you for driving vehicles on the road and for when they are at home, whether you own them or not. However, once you have premises, this kind of cover will not offer you protection for vehicles while they are in your garage. In this case, chances are you will be full time and will need a Traders Combined Insurance package.
On the other hand, if you are still working on a smaller scale, but wish to go full time, then you can still have a road risks only policy, only adjusted for the amount of hours that you work. For example, you repair cars from home on weekends but are now going to do it every day as your main source of income, though still from home and with no other changes than the amount of time you’re investing and the workload.
Proving you are a part time trader
In order to get insured on a motor trade policy, you have to prove that you’re officially a motor trader. Providing evidence, including invoices and receipts, is common practice. Genuine traders should be willing to do this. From an insurance perspective, we are only interested in how many vehicles you are likely to buy and sell during the course of the year, so this is purely for verification purposes. As long as you can prove that you are trading, or at least attempting to buy and sell vehicles or carry out repairs, we can try to find you cover.
For a car dealer, for example, a guideline would be proving that you sell at least one car a month. If, on the other hand, you very occasionally buy cars from auctions, fix them up and sell them on more of a hobby basis, then you are not classed as a motor trader. Therefore, you will struggle to get part time motor trade insurance.
At Bollington Motortrade, if we establish that your business does things the right way, we can look to obtain the level of cover that you would expect at a price that is competitive. Like other trades, the more years without claims that you build up, the greater the likelihood that your premium will come down over time, as you prove to be an acceptable general risk to insurers.