MSN Business Directory Do I need Insurance if I only trade vehicles part-time?


Do I need Insurance if I only trade vehicles part-time?

Insure Motor Trade understands not everyone who works in the motor trade does so full-time and may not need an insurance policy that provides all-encompassing cover.

It may be that you only work in the motor trade as a sideline to other employment or your business has a slight, rather than full, connection to the motor industry. Either way, you need a policy tailored to your individual needs.

However, one of the first things you need to consider is the sector you are involved in. Put simply, will you be considered to be a private motor trader or a public one?

Understanding this is important because it will determine if you also need a licence to trade. If you work as a private trader, then a licence isn’t required, but a licence is vital to those working in the public motor sector.

I have a licence – is there anything else I need to think about?

Yes, the type of cover needed. There are currently three categories of part-time motor trade insurance; regular motor trade cover, cover for motor mechanics and cover for car valets.

Once you have a motor trade insurance policy in place, you need to realise that it only covers the person(s) specified on the policy.

An insurer reserves the right to ask for proof that the cover is being used solely for motor trade purposes. This is to prevent people taking cover to circumnavigate regular insurance requirements.

Typically, car traders will be asked to prove they are active by providing things such as receipts for vehicles bought and sold. For valets, it will include receipts for car shampoos and cloths, while mechanics may be asked for provide invoices on branded paper as well as receipts for oil, parts, etc.

Company accounts can also be used to prove you are a motor trade professional.

Is there anything else to take into consideration, and how can Insure Motor Trade help?

Insure Motor Trade can discuss a policy which suits your needs. This includes stock of vehicles, public and employer’s liability cover, insurance of multiple premises, protection of personal vehicles and cover for motors in transit.

Our policies allow you to trade legally at auctions and include coverage for any issues related to this practice.

We’re only a phone call away and our advisers will be more than happy to identify the best cover to suit your needs.

As you are only working in the motor trade part-time, getting a tailored policy is of the utmost importance. Obviously, you’ll want to be covered in the best manner possible, but it wouldn’t be cost effective to be protected in the same way that someone working the sector full-time is. Our advisers will assess every aspect of your business and provide you with a policy that ensures you only pay for the things you really need.

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February 27, 2014