Are you starting out in the motor trade as a hobby? Perhaps restoring vehicles or buying and selling a few cars a year?
If so, read on for the top things every motor trade enthusiast needs to know.
You never know – reading our advice could even save you a significant amount of money when it comes to insuring your vehicles.
You need to be insured
The first thing you need to know is that if you’re working on or selling vehicles, you must be insured.
You never know what might happen and if you’re working on classic cars, you stand to lose a great deal of money if something happens to them.
That’s not to mention the consequences of somebody getting hurt as a result of your motor trade activities.
The best thing is to play safe, abide by the law and get a motor trade insurance policy as soon as you start your motor trade hobby.
You’re classed as a part-time motor trader
The second thing you should remember is that even though you may only ‘work’ in the motor trade for a few days a week, or even a month, you’re still classed as a part-time motor trader.
But since the definition of part-time motor trader really depends on each individual case, it’s best to discuss your precise needs with someone in the industry.
Vehicle restorers count as motor traders
You may think that the term ‘motor trader’ only refers to mechanics or car salesmen but that is where you’re wrong.
Vehicle restorers count as motor traders too, particularly if they intend to sell the vehicles for profit.
However, this type of motor trade activity is likely to have very specific insurance requirements that are different to other motor traders so to make sure you’re not paying a penny more than you need to, speak to an insurance broker about what type of policy you need.
You could declare your vehicle off road
In some cases, you could declare your vehicle off road instead of insuring it. This could work well for vehicle restorers who do not intend to drive the classic vehicle they are working on.
Applying for a SORN (Statutory Off Road Notification) is the official way to declare your vehicle off road and if your car is not insured, it must have one of these by law to show you don’t drive it.
A SORN registers you as the vehicle’s keeper and it can also cover you for fire, theft and accidental damage while you are working on it.
However, if you need to test drive it or drive it to display meetings, it will need to be insured under a proper motor trade policy.
To find out more about what type of insurance you need to cover your motor trade hobby, give Insure Motor Trade a call on 0844 931 2020May 2, 2014