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.
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.
Why choose Bollington for Traders Insurance
- Road risks only cover
- Third-party, third-party fire and theft or comprehensive cover
- Accompanied demonstration cover
- Public liability and employers’ liability
- Traders combined cover available as an upgrade
- Transfer or mirror your private vehicle no claims discount
- Younger motor traders (21+ for service and repair, 23+ for sales) considered
- A wide range of insurers and competitive prices
- Advice without obligation from our friendly, experienced team
- Flexible payment options
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
Why do I need motor trade insurance?If you conduct business in any area of the motor trade, you will need to obtain insurance. Personal car insurance will not cover you if you are involved in an accident while driving a customer’s vehicle, for example, or when driving a vehicle home from an auction that you have purchased and intend to sell. If you are carrying out work in the motor trade then, as a minimum, you will need road risks insurance to drive vehicles as part of your motor trade activities. If you have business premises (i.e. you don’t operate your business from your home address), then you should consider traders combined cover.
I just fix cars at home – do I need motor trade insurance?Yes, you do. If you fix other people’s vehicles to make a profit – rather than as a hobby for your own personal benefit, using vehicles that you personally own – then you need to make sure that you have adequate insurance to drive the vehicles. Even if it’s just down the road and back, to test your repairs, you still need cover while the vehicle is on the road. You will also need cover for the storage of customers’ vehicles on your premises, which is automatically included in a road risks policy if you work from home. There are optional covers available to protect you (such as public liability and defective workmanship cover, for example), although most mechanics working from home would likely only take out road risks cover to keep the cost of insurance down. It is unlikely that you will be sued for an incident involving a member of the public, or for not doing a job properly, but it might give you peace of mind to be covered against such an eventuality. Talk to us to discuss your options – we’re happy to offer advice about the insurance that suits your needs.
Am I insured to drive any car on a motor trade insurance policy?No - there are limitations and exclusions on policies, so you should not assume that you can drive any vehicle that you carry a driving licence to operate. Some vehicles – particularly performance or high-value models, or imported vehicles – could be excluded, unless there are specific extensions on your policy to cover them. You need to let us know the type of vehicles you will be driving and/or trading in order for us to ensure you are adequately covered on your insurance.
Can I use my private no claims bonus on a motor trade policy?Yes. Some insurers will allow you to transfer or mirror your private no claims bonus on your motor trade policy. Please speak to us about your circumstances so that we can advise on this – it could save you a lot of money on your insurance if you previously haven’t obtained a no claims bonus on a motor trade insurance policy.