Not all motor traders work full time – in fact, some only dip in and out of the motor trade as a hobby or a part-time business.
But however much you work in the motor trade industry throughout the year, the law states that you must be insured. Even if you only buy and sell five cars a year or renovate a couple of old vehicles, if you don’t have a valid insurance policy you’ll be operating illegally and leaving your motor trade activities vulnerable to financial risk if anything happens.
Having said that, if you operate part-time, you may feel like it is a waste of money paying for a full-time insurance policy. Read on to find out more about motor trade insurance for infrequent motor traders and how to avoid paying for a full-time policy.
What is an infrequent motor trader?
An infrequent motor trader is anyone who doesn’t operate in the industry full-time. You could be a classic vehicle renovator or even a part-time car salesman to earn a little bit of extra money – or even to do something as a hobby.
But what this means for your motor trade insurance is that you’ll have very different insurance needs from most full-time motor traders.
For example, you’re most likely to operate from your own home so you won’t need premises insurance included on your policy.
You probably won’t have any employees either so you can take employer’s liability insurance off your policy too.
Yet even though there are certain things you can leave off your policy, you may need to consider these aspects of your policy:
- Protection for your tools
- Protection against fire and theft
- Third party cover
- Vehicles in transit insurance
- Public liability cover
The best way to find out exactly what you need is to discuss your situation with an insurance broker who will be able to tailor an insurance policy to your needs.
Can I just declare my vehicles off-road?
No – if you are buying and selling vehicles (no matter how many a year), you need to be insured as a part-time motor trader.
After all, imagine the financial loss it could cause if one of your vehicles was damaged or if someone got hurt as a result of your motor trade activities.
Even if you don’t drive the vehicles, a recently introduced law states that any vehicle that has not officially been declared off road with a SORN must be insured.
How to save money on your motor trade insurance
The best way to save money on your motor trade insurance is to go through a specialist insurance broker like Insure Motor Trade.
Insurance brokers can give you an expert overview of the market, searching for the best deals and making sure you get comprehensive insurance that meets your needs at the right price.
Best of all, when you call an insurance broker you’ll be able to discuss your insurance requirements with an expert who will have the knowledge and expertise to tailor your policy to exactly what you need.
To start your journey towards your perfect-fit motor trade insurance policy, give Insure Motor Trade a call on 0844 931 2020 today.May 6, 2014