Running a side hustle in the motor trade can be a great way to earn extra income. But when it comes to insurance, it’s not always clear what cover you need — especially if you’re only trading part-time.
Not sure if a part-time policy is right for you? This guide explains what part-time motor trade insurance is, what it covers, who needs it, and how to get a quote.
What is part-time motor trade insurance?
Motor trade insurance is designed for anyone running a motor trade business with the need to cover multiple vehicles.
A part-time policy is designed for people who work and also buy, sell, repair, or work on vehicles as a secondary income, hobby, or part-time business.
For example, someone who sells cars in their spare time or someone who fixes up family and friends’ vehicles now and then could benefit from a part-time motor trade policy.
Who needs it?
Part-time motor trade insurance can cover a wide range of businesses within the motor trade. This includes:
- Part-time car dealers: people who buy or sell cars occasionally for profit (including from home or online).
- Mobile mechanics: mechanics who repair vehicles, typically outside of working hours or on weekends.
- Vehicle traders: car enthusiasts who occasionally buy vehicles, fix them up, and resell for profit.
- Car valeters: people who clean and detail cars part-time.
- Small and new motor trade businesses: individuals running small-scale motor trade operations, typically without a physical business premises.
Do I still need motor trade insurance if I only work part-time?
Yes – motor trade insurance is a legal requirement for both part-time and full-time motor trade businesses, whether you’re trading from home or on the road.
Without suitable cover in place, you could risk hefty fines and prosecution, so it’s important to make sure your business is covered.
How is it different from full-time motor trade insurance?
Full-time policies are designed for larger businesses – think MOT test centres, mechanic workshops, and large-scale car dealerships.
Part-time policies are built for smaller businesses and individuals who trade occasionally alongside their main source of income.
Some part-time policies may offer more limited coverage than full-time cover to suit the needs of people who trade less frequently. For example, they may:
- Only cover you for a set number of hours per week.
- Have restrictions on the type of business activities permitted.
- Have limits on the number of vehicles your policy covers at a time.
Is it cheaper than standard motor trade insurance?
Typically, yes, part-time motor trade insurance is cheaper than full-time policies.
Because you spend less time on business activities, your risk profile is likely to be lower than someone who works full-time.
But part-time motor trade insurance is still calculated on a variety of factors, including your age, driving history, type of business, and where you work – and if any of these indicate a higher risk profile, your premiums can be higher.
It’s also important to note that not every insurer offers part-time insurance and some insurers may also have minimum premiums that apply whether you work part-time or full-time.
💡Want to know more about how to get lower premiums? Read our article: Tips for reducing motor trade insurance premiums.
What cover can be included?
Road risk insurance
Most motor traders, whether working part-time or full-time, will at least need road risk insurance.
Road risk insurance protects you (and your employees) while driving vehicles related to your business on public roads, including vehicles you don’t own.
There are three levels of cover for road risk insurance:
- Third-party only (TPO) – covers you if you cause damage to someone else’s vehicle or injure a third party in a fault accident.
- Third-party, fire & theft (TPFT) – covers everything included in TPO and also protects you if your vehicle(s) are stolen or damaged by fire.
- Comprehensive – can cover you in most accident scenarios and includes cover for accidental damage to your own vehicle(s).
Additional cover
If you’re looking for further protection alongside your core policy, you can take out additional cover.
Options may include:
- Employers’ liability insurance – a legal requirement if you employ any staff as part of your part-time business.
- Public liability – covers you if a third party makes a claim against you for injury or property damage.
- Service indemnity – covers for defective workmanship or professional errors.
- Tool and equipment – covers equipment, including tools and machinery, to protect expensive assets.
Can I spread out the cost of my premium?
Typically, yes, you can spread the cost of your premium, but interest is usually charged when you pay monthly for your motor trade insurance rather than paying your premium in one go.
How do I get a part-time motor trade insurance quote?
There are a couple of different ways to get a quote – you can get one directly from an insurer, or you can choose to go through a specialist broker such as Patons Insurance.
At Patons, we compare quotes from a panel of trusted insurers to help you find a suitable policy at our best possible price.
Our specialist sales team understand the motor trade market and will listen carefully to your needs to help find cover that gives you complete peace of mind.
Looking for a fast, free and competitive quote? Start by filling the quote form on our website or call us on 0333 015 6886.
