Part-time motor trade insurance

Why choose Howden for part-time motor trade insurance?

As a broker that specialises in business and motor-related insurance, we pride ourselves on doing the heavy lifting, so you don’t have to. Thanks to the great relationships we have with our selected panel of standard and specialist insurers, we make the process of comparing multiple motor trade insurance policies, on your behalf, simple and easy. What’s not to like?

Here at Howden, our team understands that each motor trade policy needs to be as individual as their owners and their motor trade businesses, and that’s why we provide a personalised service, focused on getting to know you and finding out exactly what you want from your insurance.

Ultimately, whether you need to make a claim, purchase a new commercial vehicle policy, or renew an existing one, just know that a member of our dedicated motor trade team will be there to help.

What levels of motor trade insurance are there?

• Third-party - In the UK, you’re legally required to at least have third-party cover in order to drive on public roads. It’s the minimum level of cover that you can get.
• Third-party, fire and theft - does everything that third-party does, but also provides you cover in the event that any vehicles on your policy are damaged by a fire or theft.
• Comprehensive - offers the highest level of protection available. It provides all the cover that third-party and third-party, fire and theft offers, but also against any accident damage

Who is part-time motor trade insurance for?

As the name suggests, part-time motor trade insurance is for anyone who works with vehicles on a casual or part-time basis. It implies that you either have another primary job, or that you don’t work often enough or with enough cars to require full-time motor trade insurance. Your insurer will have specific criteria in this regard, so if you’re not sure if your services qualify as part time, or if they’re edging into full-time territory, be sure to chat to them about how you structure your business. 

Standard motor trade insurance is required for a range of professionals, including motor traders (who buy and sell cars), mechanics, valeters, vehicle deliverers and collectors, and tyre fitters, as well as businesses like body shops, scrapyards, breakdown and recovery, and MOT centres.

Part-time motor traders may offer any of these services on a part-time basis. For example, they could provide after-hours maintenance, restore classic cars as a hobby, valet cars over the weekends, or flip cars as a side hustle. If this sounds like you, you need to have part-time motor trade insurance in place to ensure your activities, the cars you’re working on, and the people employed and affected by your business, are properly protected.

Is motor trade insurance mandatory?

If you're working with vehicles in any commercial capacity, even part-time, motor trade insurance isn't just recommended, it's a legal requirement.

Motor trade insurance becomes mandatory as soon as you start working with vehicles that don't belong to you, or when you begin buying and selling vehicles for profit. Without it, you could face fines and penalty points, or even be disqualified from driving.

Beyond the legal ramifications of not having insurance in place, bear in mind that, in the event of an accident, you are personally liable for any damages involving vehicles under your care. This could not only damage your part-time motor trade business, but also have severe financial repercussions.

What does part-time motor trade insurance cover?

Typically, motor trade insurance, including part-time insurance, is made up of the following types of cover:

• Road risk insurance: Road risk insurance protects you from the road risks involved in a motor-related business, covering you if you’re transporting a customer’s vehicle by road. Road risk insurance can be bought on its own, and because the coverage isn’t as comprehensive as a combined policy, it’s usually cheaper.

• Liability insurance: Depending on how you manage your business, you might also need to have one more or more forms of liability cover in place. For example, employers’ liability insurance is mandatory if you employ full or part-time employees, temporary staff, contractors, or volunteers. And public liability insurance is designed to protect you if you engage with the public (which, as a motor trader, you’re likely to do). With the right liability cover in place, you’re covered for any claims made by employees, partners, or clients.

• Combined motor trade insurance: Combined motor trade insurance is the most comprehensive type of motor trade insurance. It includes both road risk protection and the liability coverage your business needs. You might also choose to add other insurance products, such as:
• Business premises cover
• Business interruption insurance
• Personal accident insurance
• Legal expenses cover
• Breakdown cover
• Goods in transit cover
• Classic motor trade insurance
• Self-drive hire insurance

As a part-time trader, you might not necessarily need the additional coverage these products provide. But depending on your business and your appetite for risk, a couple of extra add-ons could offer greater peace of mind. Go through them with your insurer or a broker to ensure you have the right level of protection.

Is part-time motor trade insurance cheaper?

Generally, yes, part-time insurance is usually cheaper than full-time motor trade insurance. This is usually because:

• Your risk exposure is lower: Since you’re spending less time on your business activities than full-time motor trader, insurers will generally consider you a lower insurance risk, which will likely lower your premium.

• Your coverage could be limited: Part-time policies may have restrictions on the number of vehicles covered or the hours you’re allowed to work. Again, this can positively affect the fees your insurer charges.

• Your liability is lower: With fewer transactions and less time spent working, you have a lower liability.

It’s worth noting that not every motor trade insurer offers part-time policies, which can affect how competitive prices can be. And some insurers might standardise their policies, so that the same criteria and premiums apply regardless of whether you offer your motor trade services on a part or full-time basis. It’s also possible that your individual circumstances — including where you live, your driving history, and the types of vehicles you work with — might raise your premiums.

The only way to know for sure is to compare quotes from multiple providers to find the best deal for your unique circumstances. It’s a good idea to ask an experienced broker to help.

Read more: Is part-time motor trade insurance cheaper?

So, what is the average cost of motor trade insurance?

There’s no one-size-fits-all answer to what part-time motor trade insurance costs, and the only way to find out for sure, is to ask for a quote. However, here are some of the factors that will likely affect your premiums:

• The type of business coverage you choose (road risks only or a combined policy)
• The type of services you offer
• The size of your business and how many people you employ, even if only on a part-time, contract or volunteer basis
• Your claims history
• Your driving experience and convictions
• Your years of trading experience
• Where your premises are located and the security measures you have in place
• The types of vehicles you work on
• The value of these vehicles
• Your annual turnover

Motor trade insurance Guides

Want to find out more about the motor trading industry? Read our motor trade insurance guides, or any of the articles below:

• How much is motor trade insurance?
• Trade plates for the motor industry: Everything you need to know
• Are you seen as a trusted trader?