Part Time Motor Trade Insurance

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Guide To Part Time Motor Trade Insurance

By Eamonn Turley
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Eamonn Turley Insurance Expert

Eamonn Turley has a wealth of experience within different insurance sectors. Through hard work and over time, he has gained expertise in digital marketing and user interface design. Elements that are crucial to any successful online business. The key aim is to develop websites that are intuitive, fast to load and provide insurance quotes tailored to your needs.


Expertise: Digital Marketing, Insurance, Home Insurance, Vehicle Insurance, UI Design
from the MultiQuoteTime Editorial Team - Fact checked

The team at MultiQuoteTime will fact-check content to ensure accuracy at the time of writing. In addition, we also review and update content on an ongoing basis. We aim to keep the content fresh and useful. If you are considering applying for any of the products, please take note that it is important that you read the terms and conditions that are applicable.

Feb 2024

Most car dealers start off part time, maybe trading and working from home at the start, to keep the overheads low. At this stage you will not need the same level of cover as a full time dealer working from a forecourt, but you still need insurance to cover your part time work. 

A part time motor trade insurance policy is for the professional who buys and sells vehicles, but does not do it as their main revenue stream. It is also referred to as auto trader's insurance. Many of them specialize in a particular type of vehicle like sports cars, muscle cars or motorcycles. MultiQuoteTime works in partnership with QuoteZone who can help you by providing multiple car trader insurance quotes from a panel of select UK brokers and underwriters. This type of policy can be tailored made to fit your needs and the operation you have. To qualify for this type of policy, at a minimum, 1 vehicle should be purchased and sold per month.

What Is Part Time Motor Trade Insurance?

The definition of part-time motor trader's insurance is coverage for buying and selling vehicles from your home, a showroom, or other business premises. It provides cover for the repairing and servicing of vehicles, and even covers breakdown services or even tire fittings.

You can combine policies that include road risks and other categories that we will go into later. So, if you are a car salesperson or motor industry worker who runs your own business or works even part-time, getting viable motor trade business insurance is essential.

Part-Time Motor Trade Insurance For Any Part Time Motor Related Business

Motor trade insurance is an umbrella term that covers a wide range of activities that related to motoring.

  • Part-time and full-time motor traders
  • Mobile mechanics
  • Vehicle recovery service agents
  • Car valets
  • Working in body shops and crash repair
  • Tire fitters
  • MOT stations

All these motor trade categories have varying risks and have specific insurance needs. 

What Does A Motor Trade Policy Cover?

Motor trade insurance policies cover those that work on and drives their customer’s vehicles. The policy can be streamlined to cover you, the company owner, and one or more of your employees. Although, you will need employer’s liability insurance if someone works for you. Even if you don’t drive your client’s vehicle, you’ll still need some form of motor trade insurance in event of any accidents to the vehicle in question whilst in your custody.

Here are some examples of the coverage you can expect from a standard policy.

  • Cover in case your vehicle is damaged in an accident or stolen.
  • Cover for any claims that may arise out of the work you do on the vehicles.
  • Insurance for your customer’s vehicles when you want need to carry out a road test.
  • Protection in case the tools or equipment you use are damaged or stolen when the premises are included in the policy.

What Types of Road Risk Motor Trade Insurance Are Available?

Motor trade road risk insurance offers the same level of protection as for full-time traders, but since the risks are reduced because of the low volume of vehicles that you deal with. If you are part-time and only deal with a low number of vehicles, your premium costs should be lower than full-time operators. The cover comes in 3 levels similar to standard car insurance and include;

  • Third-Party Only Insurance : Meets the minimum requirement set by the UK government. This road risk cover repairs a third party’s vehicle and handles the medical bills of the people in that vehicle only. 
  • Third party fire and theft :  This is the same as above, plus your vehicles are also covered if they are damaged by fire or are stolen.
  • Comprehensive : This is the highest level of cover available.  Comprehensive covers the costs of repairs for both vehicles involved in an accident and medical bills of the occupants of both vehicles. 

All policies can be tailored to fit the needs of your business. When requesting a quote, you will have to provide information about yourself and business. This information will enable the panel of insurance brokers to offer quotes that are tailored to your individual requirements.

Requirements For Part Time Motor Trade Insurance?

To obtain a motor trade insurance policy, you will need to prove that you are indeed an official motor trader. Providing evidence such as invoices and receipts is the most common practice. Genuine motor traders will have no trouble doing this.

How Can I Save Money? 

To save on a part-time trade policy premium, you must reduce the risk you pose to the broker. We have listed some steps that should lead to a lower premium below. Speak with your broker for other opportunities to reduce your premium.

  • Making your place of business as secure as you can with fencing or have all the vehicles parked in a locked facility. Make use of technology by installing CCTV and alarms connected to the local police station. You should also install security lighting.
  • Pay the premium annually to avoid the interest charges attached to monthly payments.
  • All insurance policies come with an excess, the amount you accept liability for.  In negotiation with your broker, this  could be increased to a larger amount in return for a discounted premium.

Compare The Cost of Part Time Motor Trader Insurance Today

Request multiple quotes for part-time motor trade insurance cover by selecting GET QUOTES below. Then simply wait to receive multiple motor trader insurance quotes that match your business and financial requirements from a select panel of UK brokers. When reviewing the quotes, pay attention to any exclusions and limitations in the policies. If you have a specific requirement, make sure this is included within the policy. The panel of brokers will be able to advise and provide a policy that meets with your actual trader requirements.

Part time Motor Trader Insurance FAQ's


How Much Will A Part-Time Motor Trade Insurance Policy Cost?

The price of a part time trader insurance policy will depend on many factors. Age is top of the list as you will find the motor trader insurance under for the under 25's can be the most expensive. The second factor can be the level and extent of cover that you require. Opting for the highest levels of cover is good when you make a claim, but you need to ask yourself, is it worth the extra expense.

Do You Need Motor Trade Insurance?

If you will be driving customer vehicles, you will by law need road risk insurance. If you work on client’s cars, you will be held responsible for damage or theft of the vehicle whilst in n your custody. Motor trade insurance is designed to protect you against these type of claims. You don’t want to cause damage to a customer’s car and then be left to foot the bill out of your own pocket.

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