Understanding Part-Time Motor Trade Insurance: A Comprehensive Guide

Part-time motor trade insurance is a type of insurance policy specifically designed for individuals or businesses operating in the motor trade industry part-time. This can include a wide range of vehicle-related activities, such as buying and selling cars, carrying out repairs and services, running a valeting business and more. In this guide, we will explain in greater detail, who part-time motor trade insurance (also known as part-time traders’ insurance) is for, and how it benefits and protects you.

motor dealer discussing insurance policies with the customer

What is Part-Time Motor Trade Insurance?

Part-time motor trade insurance is the same as general motor trade insurance but with added flexibility and a typically lower price. It is tailored to part-time motor traders, including individuals with another primary job or business, who engage in motor trade activities on the side. The insurance typically provides cover for driving or working on customer vehicles as well as your own. It can also cover the act of trading vehicles. Often it will include liability insurance, which will protect against claims made by third parties for injury or property damage, and optional features, such as material damage cover, which protects the premises, tools and equipment can be included.

Since the insurance is for part-time activities, it is generally more affordable than full-time motor-trade insurance, reflecting the lower level of risk associated with part-time motor traders. For further information on motor trade insurance, please read our blog ‘What is Motor Trade Insurance’.

Key Components of Part-Time Motor Trade Insurance

When it comes to part-time motor trade insurance, it is important it covers all your business activities involving vehicles and protects you at all times. It is wise to ensure your policy includes the following important coverages. Road risk insurance, liability insurance, product liability insurance, material damage cover, service indemnity insurance, stock of vehicles cover, parts and accessories cover and business interruption insurance. Each policy is unique and can be tailored to suit the specific needs of a part-time motor trade business. It’s important for those in the industry to carefully assess their requirements and ensure their policy covers all aspects of their activities.

What can part-time motor traders’ insurance cover?

All policyholders need to understand what their part-time motor trade insurance covers, so below is a more thorough description of the main components to help make insurance clearer.

  • Road Risk Insurance
    Covers vehicles owned by, or in the custody of, the policyholder, allowing them to be driven on public roads for trade purposes. Including moving vehicles between locations, test drives and deliveries.
  • Public and Employer’s Liability Insurance
    Protects against claims made by third parties or employees for injuries or property damage caused by your business activities or their daily work.
  • Product Liability Insurance
    Covers damage or injury caused to a third party by a product you have sold or supplied.
  • Material Damage Cover
    Protects premises and equipment, including tools, machinery and office equipment.
  • Service Indemnity Insurance
    Covers accidental damage to vehicles you are working on.

Other additional features may include, parts and accessories cover, stock of vehicles cover and business interruption insurance.

Advantages for Part-Time Motor Traders

Part-time motor trade insurance is designed specifically for part-time motor traders and offers great advantages over standard motor trade insurance and is more cost-effective. Whether you are involved in vehicle sales, repairs, servicing or restoration, you can select coverages that are relevant to your specific activities, avoiding paying for anything unnecessary. It ensures you meet all legal requirements, particularly regarding road risks, which is crucial if you need to drive customers’ vehicles or any you plan to sell. The insurance provides financial protection against various risks like theft, and damage to vehicles in your custody, or tools and premises, and having proper insurance in place can enhance your reputation as a professional within the trade. It will also cover you for public liability, product liability and, if applicable, employers’ liability.

Who Needs Part-Time Motor Trade Insurance?

Another common mistake in seeking motor trade insurance is overlooking the significance of add-ons and extensions that can provide comprehensive protection for your specific business needs. While basic policies mostly cover the general risks, it's often the additional coverage options that safeguard against the specifics that could otherwise be detrimental to your business.

Businesses with unique operations like vehicle transporters or recovery services need to carefully assess their specific risks and choose add-ons that address these concerns effectively. This approach ensures your policy is not just a standard off-the-shelf solution, but a custom plan for your specific business activities. It's important to carefully consider which add-ons are relevant to your business. This ensures your insurance policy is created around your exact needs and specific business risks. Prime Cover's expertise lies in guiding you through these options, helping to select the add-ons that best complement your core policy and offering a safety net tailored to your motor trade business.

How to Obtain Part-Time Motor Trade Insurance

Our final critical oversight in motor trade insurance is neglecting regular policy reviews and updates. The motor trade landscape is dynamic, with shifting business models, evolving market conditions and continuous regulatory updates. Regular engagement with your insurance provider is paramount to ensure your coverage remains aligned with these changes.

We understand that your business needs today might not be the same as tomorrow. Whether it’s due to expansion, diversification or compliance with new laws, your insurance policy should evolve accordingly. Regular reviews allow for adjustments in coverage to protect against new risks or to refine existing policies for efficiency and cost-effectiveness.

Without these periodic assessments, you could find yourself either overinsured, wasting valuable resources, or underinsured, leaving critical gaps in your protection. Proactive communication with Prime Cover ensures your insurance strategy is not just a one-time decision but an ongoing process of adaptation and optimisation.

Navigating Part-Time Motor Trade Insurance

As in all aspects of life, it is important to get the right motor trade insurance for you. Especially as we are living in a time where money is tight for many and being financially prudent is the key to managing and maintaining your standard of living and your business operations.

For a deeper dive into motor trade insurance, please click here to visit our dedicated page or contact us to speak to one of our helpful experts.

Why choose Prime Cover for part-time traders’ insurance?

With decades of experience in the insurance industry, and specialising in all facets of motor trade insurance, Prime Cover understand the unique needs of each business or individual. This expertise allows us to help all customers get the exact coverage they need without any unnecessary additional features or costs, at the best possible price. Get in touch with our friendly team, to get your tailored and bespoke quote today!