For part-time mechanics, body shops, dealers and other motor trade businesses, getting a full motor trade insurance policy may not be cost-effective. It’s important to have insurance in case something goes wrong, but the right policy can be more affordable when it is tailored to your business.
What is part-time motor trade insurance?
Motor trade insurance provides road risks insurance and can include demonstration cover, premises cover, employers’ liability cover and more. All motor traders need to have at least road risks insurance, to cover them to drive customers’ cars and other cars for work. Part-time motor traders’ insurance can combine many types of coverage in a single policy.
Why do I need part-time motor trade insurance?
With part-time motor trade insurance, your business is protected from financial loss if something goes wrong. The benefits of this include:
- Financial security, knowing your bases are covered
- Flexibility to work part-time
- Can be tailored to cover personal vehicles, premises and contents
- MID access as needed
- Only covers what you need
What does part-time trade insurance cover?
Motor trade insurance brings together many different covers relevant to motor traders in a single policy. With part-time motor traders’ insurance, the key is to only choose areas that make sense for your business. Here we briefly describe some of the most common coverage options.
Road risk
The only coverage motor traders are legally required to have for their business is road risks insurance. This covers you to drive cars in your possession, including customers’ cars and those you’re working with, such as cars purchased at auction for resale.
Third-party only: The most basic type will pay for third-party personal injury or property damage in the event of an accident, but not for damages to the car you were driving.
Third-party fire and theft: This level adds cover for damage caused by fire or theft.
Comprehensive: the highest level of protection is Comprehensive Road Risks Insurance, providing cover for the vehicle driven if you have an accident.
Road risks insurance covers customers’ cars left in your care, custody and control, such as for servicing or repair. In some cases, you can insure a commercial vehicle under your motor trade policy, but you will not be covered to drive personal or family cars, other people’s vehicles outside of business or vehicles expressly excluded from the policy.
Demonstration cover
This allows customers to test-drive vehicles they intend to purchase from you, so you can be reimbursed if any accidents or incidents occur. This is usually available in two levels, one for accompanied test drives and one for unaccompanied test drives.
Employers’ liability
To pay any compensation and legal fees when employees claim after an accident at work. If you employ anyone as part of your motor trade business, it is a legal requirement to have employers’ liability insurance to ensure compensation is available when needed.
Public liability
This cover helps to pay compensation and legal fees in any public liability claims relating to injury, accidents, and damage to personal property. If for some reason your business is taken to court by a member of the public, this cover can ensure you don’t face financial disruption and can continue running the business.
Goods-in-transit
This covers the cost of replacing or repairing tools and equipment stored in your vehicle if they are stolen or damaged during a fire or accident.
Premises cover and storage
This covers the cost of repairing or rebuilding your business premises, such as a garage, in the event of fires, floods, and other damage. Some premises policies also relate to contents such as tools and equipment.
Refurb and Restoration
This covers the cost of restoring or refurbishing vehicles you own if the loss results from theft, damage or fire.
SORN vehicle
You can get insurance for vehicles declared off-road via Statutory Off Road Notification (SORN), to cover against fire or theft.
Product liability
Product liability insurance protects your business against the cost of compensation for personal injuries, loss of or damage to property caused by a fault in your product or work done.
How much cover do I need?
The amount of coverage you might require for your part-time motor trade business depends on factors such as:
- The type of business
- The location, size and revenue of your business
- The number of days your business is open
- The number and age of employees
- The value and age of vehicles in your possession
- The value of tools and equipment
- Previous claims history
The insurance for a part-time mechanics service will differ from coverage for a part-time car dealership while upgrading cars in your spare time will need a different level of insurance again. The best option is to speak to a motor trade insurance broker and find out what is best for your business.
How can I get cheaper part-time motor trade insurance?
Like with most insurance types, your part-time motor trade insurance premium can be reduced with:
- A good no-claims record
- Experienced staff
- Reliable security measures
- Combining your policies into one
Why choose Nash Warren for Part Time Motor Trade Insurance
Part-time Motor Trade Insurance or part-time car trade insurance can be complicated to figure out exactly what you need. At Nash Warren, we can help with a wide range of policies for businesses of all sizes, tailored to your needs. We don’t deal in legal jargon, so you’ll have a simple, straightforward service and benefit from over 30 years of experience in our team.
