What Is Part-Time Motor Trade Insurance?
Part-time Motor Trade insurance is essentially a Motor Trade insurance policy aimed at people who only work in the motor trade on a part time basis and have another occupation or are retired (subject to the number of hours you work). If you don’t have another occupation, then you may need a full motor trade policy, no matter how much or how little time you spend on the business so check with one of our team. Having insurance is a legal requirement for anyone operating any kind of motor trade business whether that’s as a mechanic, a tyre fitter or any other type of trader, however eligibility for a policy does depend on your other occupation(s).
Part-Time Motor Trade Insurance Explained
There are two main types of policy for motor traders; Road Risk insurance and Combined Insurance. Most part time traders won’t have a specific premises to run their business from, and so a Road Risk policy will be the most suitable to cover the vehicles you’re working on and those which form part of your stock. The 3 levels of cover available are Third Party Only, Third Party, Fire & Theft, and Comprehensive cover.
If your business employs other people then you also need Employers’ Liability cover too. You can also arrange Product Liability insurance to cover you for issues with products supplied to or from your business, and a Public Liability policy can cover you in the event someone is injured while on your premises, visiting your business. However, for those traders that do have premises, you can take out Motor Trade Combined cover, which in addition to the above features, can also include cover for your buildings, vehicles, tools, equipment and machinery, money and business interruption.
So, What Makes Up A Part-Time Motor Trade Insurance Policy?
Part-Time Road Risk Cover
Motor Trade Road Risk insurance for part-time traders offers the same three basic levels of cover as a full time policy and a standard Private Car policy, but it acknowledges the fact that the business is only run on a part time basis. Those levels of cover are:
Third Party Only is a level of cover designed specifically for the benefit of any Third Party that’s involved in any incident that is the fault of the insurance holder. This means that if you were ever to be at fault for causing an accident that damaged another person’s vehicle or property, then your insurance policy will cover the costs of the Third Party.
This does however mean that you are unfortunately not covered for any damages to your own vehicle or property, and must pay for this yourself.
This policy includes both Third Party cover and also a cover for damage caused to your own vehicle(s) as a result of fire, theft or attempted theft.
This policy is usually slightly more expensive than the standard Third Party Only policy as you are receiving a greater amount of coverage.
This also includes cover for damage to your own vehicle(s) if you are involved in an accident that is deemed your fault.
A part-time trader with a Road Risk policy can drive any vehicle in their possession, whether this is for personal use or for motor trade purposes, such as driving a customer’s vehicle when diagnosing faults or testing on the road as part of a mechanics business.
Part-Time Combined Cover
A Combined Part-Time Motor Trade policy offers more protection than a Road Risk policy for a part-time trader. In addition to the three levels of cover available with a Road Risk policy (Third Party Only, Third Party, Fire & Theft, and Comprehensive), part-time traders can also cover any buildings, contents, stock, equipment, tools and money kept on site.
If your part-time motor trade business only involves you selling cars from your home, off your driveway, then you may have little need for a Combined Part Time Motor Trade policy. However, if you’re not sure exactly which route to go down, don’t run the risk of not being properly covered, and call one of our specialist team on 0800 221 8077. We’ll be able to answer any of your questions and help make sure you have all the information you need to get the policy that suits your business.
Liability Cover for Part-Time Motor Traders
Many motor traders find adding a Liability product to their main policy to be beneficial, and this extends to traders who operate on a part time basis too. Here are some details about the various different types of Liability cover available to Motor Traders – some of which are optional, while others may be required by law: Employers’ Liability
Any business, including motor traders, whether full or part time that have employees working for them, must take out Employers’ Liability insurance by law. It doesn’t matter whether it’s a mechanic, book-keeper or cleaner, if your business employs them then you are legally required to have this cover in place to protect them, should anything happen to them while carrying out work for the business. There are some exceptions, such as certain members of your own family, but it is worth checking to make sure you are not breaking the law as the potential fines if you are caught without cover in place, are huge and could put you out of business.
If you’re a part-time mechanic, run a Bodyshop part-time or a part-time tyre fitter, then Product Liability insurance will be a useful addition to your Part-Time Motor Trade policy. Product Liability cover helps protect you if anything goes wrong after performing a service or fitting a product to a customer’s car. It covers damage caused as a result of the work carried out or the parts you have fitted, and could protect you against any claims made as a result.
Many traders, both full-time and part-time, will have customers visiting their place of business, whether that’s at their home or a dedicated premises. As a result, it’s important to protect yourself and your business from any accidents that may occur, such as a customer tripping over some equipment or slipping on some oil, by taking out Public Liability insurance. A claim against you could cost thousands, particularly if someone is seriously hurt while visiting your business, so having cover in place could prevent you from having to find the money yourself to cover any claim against you.
Who Needs Part-Time Motor Trade Cover?
If you have another occupation in addition to your part-time motor trade business, or if you have already retired but now work as a trader on a part-time basis (subject to the number of hours you work), then you will need to take a Part-Time Motor Trade insurance policy. This is because you won’t be eligible to take out a policy for full-time traders, due to only working part-time on the business. If you lie to obtain a Full Time Traders policy then you may find that your cover will be cancelled or voided. It’s important to always be honest about your motor trade activities.
Vehicle Sales Cover for Part-Time Traders
If you buy and sell vehicles for profit on a part-time basis then a Vehicle Sales insurance policy will be what you’re looking for. You’ll want to ensure Demonstration cover is included, as that is what allows you to let customers test drive the vehicles you’re selling. Relying on customers to have their own cover isn’t recommend as driving other cars is often covered on a Third Party Only basis on a standard Private Car policy. As a vehicle seller you may want to include Stock of Vehicles and Goods in Transit as part of your cover. If you run your vehicle sales business from premises then you may want to opt for a Combined Part-Time policy, which can include Building & Contents cover, Tools & Machinery cover, as well as cover for money kept on site too.
If you operate a mechanic’s workshop on a part-time basis, for example an ‘after hours’ one that fits around another profession, then you’ll be looking for a Mechanics insurance policy, and especially one that takes into account your other occupation. Even if your mechanic business is one where you operate from your garage at home, you will still want to make sure you’re properly protected. A Mechanic’s policy, whether it’s for someone who trades full time or part time, can include everything from Product Liability cover, to protection for driving client cars for testing and diagnosis.
Part-Time Body Shops
Running a body shop as a part-time business and looking for a suitable policy can be a similar journey to someone looking for a Part-Time Mechanics policy. If you operate from home then you may only be interested in a Road Risk policy which would allow you to drive customer’s cars, along with Product Liability cover which would protect you for the work you do. If you operate from premises, regardless of whether it’s part-time or full-time, then you may be looking for a policy which is a bit more complicated and reflects your business properly.
Vehicle Recovery Insurance for Part-Time Traders
If you’ve started a part-time vehicle recovery business or work as a sub-contractor to supplement your main income, then you’ll want a policy that not only covers the vehicle you’ll be using but the vehicles you’ll be transporting too. This means you’ll want to include Carriage of Vehicles cover, so that if anything happens to the vehicle you’re transporting you are covered.
Part-Time Tyre Fitters
A part-time tyre fitter may find that they need a similar policy to a mechanic or bodyshop owner. This means a part-time tyre fitter will want their policy to include everything from Product Liability to Tools & Machinery cover.
Whether you work part-time as a valeter on your own, or you’re contracted to another business or garage, then you need an appropriate policy so that you can be covered when moving customers’ vehicles. You can be covered if you work from a fixed premises or even offer a mobile valeting service. One of the main features of Valeters insurance is the Flexible Customer Vehicle Indemnity limits, allowing you to valet/detail expensive vehicles. Product Liability insurance as well as Tools & Equipment cover are just two examples of additional cover you can obtain when taking out a policy as a valeter. Don’t forget to add Employers’ Liability if you have anybody working for you, particularly considering the chemicals and products they may come in to contact with.
Part Time Car Jockeys
It doesn’t matter where you operate as a car jockey, whether that’s at an airport, hotel, car park, convention centre, or anywhere else, being covered to drive other people’s cars on a Motor Trade insurance policy is essential. Although you may only be driving short distances and most likely on private property, you will still be invalidating your personal Car insurance policy if you try to use this to cover your activity. Furthermore, having a Car Jockey policy will allow you to add things like Public Liability cover to your policy, affording you top level protection against anything that could happen as a result of the work you carry out.
Part Time Mobile Mechanics
If you work as a mobile mechanic then you’ll want to make sure that your policy fully covers your mechanic work. As you’ll be on the road performing your mechanic duties, you’ll need cover that is tailored to those specific circumstances, meaning you’ll probably need to have Tools & Portable Tools cover, as well as Goods in Transit cover, on top of any other additional Motor Trade insurance products you may want to include for full peace of mind and protection.
Helpful Tips for Part Time Traders
Make Sure Your Policy Is for Part Time Traders
You might not think there is much of a difference between a policy for full-time traders and one that’s designed specifically for part-time traders, but insurers don’t see it that way. If you don’t emphasise the fact you only trade on a part-time basis you could see your policy cancelled, making it harder for you to get covered in the future.
Consolidate Insurance Policies
You may be able to add your personal vehicles to your new Motor Trade policy, allowing you (and possibly your spouse) the luxury of being able to cancel your Private Car policies and save money, which could be put back into your business. If you do this, please be sure to check you are covered on your Trade policy before cancelling any other Car insurance you may have.
Get the Right Cover
Just because you are a motor trader that operates part time, it doesn’t mean you need less cover; in fact, you’ll likely need the same cover as a full time trader might. While it might be cheaper, don’t just opt for the lowest level of cover available just because you are a part time trader, make sure you get a policy and a level of cover that’s right for your business.
Get Additional Cover
Getting the right cover for your business can often mean making sure you get the right additional products added to your main policy. For many types of motor traders this can make the difference between a policy that works for them and one that barely provides enough cover. For example, if you sell used cars then you will need a policy that includes Demonstration Cover, otherwise your potential customers won’t be covered to test drive your vehicles when they come to look at them, and this may end up costing you a sale(s) as a result.
Liability Insurance Can Still Protect You and Your Business
If you come into contact with the public, you’ll need Public Liability cover; If you have any employees then you’re required by law to take out Employers' Liability; and finally, if you undertake any work on customer vehicles then you’ll want Product Liability to cover the work you do and the parts you fit. Just because your business is part time, it doesn’t mean you’re exempt from any legal requirements such as Employers’ Liability, and you’ll still want the protection offered by the other Liability products as well.
Think About Where You Store Vehicles
As a part time trader, your business might only be small, with limited space to store vehicles in your possession – whether they are stock vehicles you own or customer vehicles. This may mean you end up using the streets surrounding your premises or home to store cars, both permanently and temporarily. If possible, try and obtain a plot of land on which you could securely store your vehicles, ensuring they stay safe and your premium stays as low as possible.
Make Sure You Trade Enough Vehicles
Whilst you might be part time there’s still a minimum number of vehicles you must trade, if you are a car seller. Minimum requirements may differ for different insurers, so it’s essential you find out the number of cars you must trade on each policy, so that you don’t fall short. You may find your policy is cancelled if you do not trade enough cars.
Thinking About Going Full Time?
There are two types of part-time traders; those who hope to supplement their current income with a side-line, and those who hope to turn a part-time business into a full-time operation. If the second one sounds like you then it’s something you should be thinking about, especially when it comes to taking out a Part Time Motor Trade insurance policy. It is important to understand how easy it would be to convert your part-time policy into a full-time one, so make sure you speak to your broker to understand exactly what’s required and what you would need to do.
Are you a Part-Time Motor Trader?
If you are a part-time motor trader then we could have the perfect cover for you. If you are unsure if you qualify for a policy, then our team of experts would gladly discuss it with you and point you in the right direction.
How Can Think Insurance Help you with Part-Time Motor Trade Insurance?
Not every motor trader is 100% sure what they need to get covered for, which is where we come in. Our team of Motor Trade insurance specialists know the ins and outs and can help you decide what needs to be covered. To speak to a member of our specialist team today call 0800 221 8077 or alternatively you can start the quotation process right away by clicking ‘Get a Quote' below.
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Part Time Traders Insurance >>
- 1 What Is Part-Time Motor Trade Insurance
- 1.1 Part-Time Road Risk Insurance
- 1.2 Part-Time Combined Insurance
- 2 Liability Insurance for Part-Time Motor Traders
- 2.1 Employers Liability
- 2.2 Product Liability
- 2.3 Public Liability
- 3 Who Needs Part-Time Motor Trade Insurance?
- 3.1 Vehicle Sales Insurance for Part-Time Traders
- 3.2 Mechanic Insurance for Part-Time Traders
- 3.3 Body Shop Insurance for Part-Time Traders
- 3.4 Vehicle Recovery Insurance for Part-Time Traders
- 3.5 Tyre Fitters Insurance for Part-Time Traders
- 3.6 Valeters Insurance for Part-Time Traders
- 3.7 Car Jockey Insurance for Part-Time Traders
- 3.8 Mobile Mechanics Insurance for Part-Time Traders
- 4 Helpful Tips For Part Time Traders
- 4.1 I Work Part-time Do I Really Need the Additional Products?
- 4.2 Can I Use My Vehicle for My Other Occupation
- 5 Speak to a Motor Trade Insurance Expert Today