Think Insurance, UK, Walsall
Selling Vehicles

Hobby Motor Trader Insurance

As a hobbyist with an expensive passion you might be thinking about the possibility of Hobby Motor Trader Insurance.

Most people have some sort of hobby, and it can vary from an inexpensive past-time to a time-consuming and costly project. One such example is motor trading; car enthusiasts often like to restore classic cars to their former glory or simply find a car at a bargain price and sell it on for a nice profit.

These types of hobbies can mean working with expensive tools, machinery and vehicles – so most motor trade hobbyists will want to make sure that their projects are protected. However, there is no such insurance product called Hobby Motor Trader Insurance or any variant of that term because it doesn’t exit, and anyone looking to make a profit from fixing up and selling on cars might have to look at a part-time motor trade insurance policy instead.

part time motor insurance

Part-Time Motor Trade Insurance

To take out a Part-Time Motor Trade insurance policy you will need to sell at least six cars a year or one car a month for some insurers, alongside another job/business. If you meet the minimum requirement of cars sold but are retired, you may still be eligible to get a Part-Time Motor Trade insurance quote. If you do qualify for Part-Time Motor Trade insurance then please call 0800 221 8077 or click the ‘Get a Quote’ button at the bottom of the page.

What If I Don’t Qualify For Part-Time Trade Insurance?

If you were searching for Hobby Motor Trader insurance and you don’t qualify for Part-time Motor Trade insurance by selling the minimum number of cars a year, then you shouldn’t try your luck and take out a policy regardless. Most insurers will ask for proof of trading, and this may not necessarily be at the point you take out the policy. It can be similar to taking out a Car insurance policy where the insurers wait for your No Claims Bonus certificates to be sent over from another insurer; If you don’t have sufficient proof of trading, your policy will be cancelled and you could lose the premium you paid.

Even if you do manage to obtain a Motor Trade insurance policy under false pretences and you need to make a claim on your policy, your trading activities will be looked at closely and if your insurer discovers you are only a hobbyist, your claim could be rejected, your insurance cancelled or even voided meaning you would have to cover your costs and losses out of your own pocket instead.

home and car insurance addon

Home Insurance and Car Insurance

As someone whose hobby deals with expensive items, you will still want to make sure you are insured one way or another, so how can you achieve that without taking out a Motor Trade policy? You may find that your tools and equipment (if any) could be covered under a regular Home insurance policy, and you may be able to cover the cars you are working on as part of a multicar policy, though if not, you would need to take out a Car insurance policy for each of the vehicles in order for them to be covered. If you are restoring a car, then you might want to declare it SORN until it is roadworthy, and then you would have to tax it and make sure your insurance covers you to drive it on the road. Before doing anything though, make sure you contact your broker for advice and guidance on your own situation and what you are/aren’t able to cover under each type of policy.