Part Time Motor Trade Insurance

Is part-time motor trade insurance more expensive with fully comprehensive coverage?

Whether you’re working from home and have taken up making money from buying, selling, or even doing some repairs on cars, or you’ve always done it as a hobby and only recently started to make some money from it, you still need to make sure that you have insurance.

Part-time motor trade insurance is there specifically for those who are operating as a motor trader, but not full-time. However, as with all insurance policies, there are various levels of coverage that you need to consider. Not only will they affect the kind of coverage you can expect, but also how much you’re likely to pay. 

Here, we’re going to look at some of the levels of coverage you can get, how much they will affect your costs, and why it might still be worth considering paying the extra anyway.

The levels of coverage available

The main question you are going to want to answer is what kind of coverage you’re going to need for your policy.
There are three basic levels of cover, most of them working similar to a full-time policy, but at a reduced cost, since there’s a reduced risk when you’re working part-time. The levels of cover are as follows:

Third Party Only

This coverage is the most basic type and effectively covers your involvement in any incident that is the fault of the insurance holder. As such, if you are found liable for accidents or incidents that damage another person’s property,
including their vehicle, then this policy would cover the costs incurred by that other person. It’s important to note that this doesn’t cover the costs of any damage your own property might suffer.
Third party may well be the cheapest it you are a new venture just starting up in the car selling sector.

Third Party, Fire, And Theft

This includes everything that is included in Third Party coverage but also covers damage caused by your own vehicles and commercial property that happens as a result of fire, theft, or even attempted theft. The wider range of coverage comes with greater costs, as well.

Comprehensive

The broadest reaching form of coverage, these policies cover everything covered by a Third Party, Fire, and Theft policy, but will also cover costs incurred as a result of accidents or incidents that you are found responsible and at fault for.
Indeed, Comprehensive Part-Time Motor Trade policies do cost considerably more than the other types of policies available. That said, there are still reasons that part-time traders might want to consider them.

Should you pay the extra for more coverage?

There are pros and cons to paying the higher cost of a Comprehensive policy when you’re looking at Part-Time Motor Trade insurance. The immediately obvious disadvantage is the higher cost that comes with it. You could be paying more than you need to for coverage that you might never use, especially if you only act as a trader very occasionally. This can make it difficult to achieve a profit from your trade.

That said, with the advantages, you’re more equipped to do more business, and protected against a much wider range of possibilities. You’re a lot less likely to end up underinsured, meaning that you’re not as likely to have to go too deep out-of-pocket if, for instance, you are found to be at fault in an accident that damages one of your own vehicles.

Do you need Part-Time Motor Trade Insurance in the first place?

There may be a possibility that you don’t technically need part-time motor insurance if, for instance, your business only operates within your family cars and you are already covered by a cheap insurance policy that covers those cars and third-party damage caused by accidents involving your cars. However, if your personal car coverage, alone, is not enough to cover third-party damage or cars that you might own for business purposes, then part-time motor trade insurance may well be necessary for you you to be compliant with the law.
If you’re operating commercially, it’s usually wise to take the safe route and ensure that you are covered. Otherwise, make sure that you get precise expert advice on your own insurance needs if you’re looking to go without.

Choosing the insurance that meets your needs

Whichever kind of policy you end up going with, if you do find that you need to compare part-time motor trade insurance, then you should choose it with all the right information at your fingertips. As such, be sure to take a look at our policy comparisons to see how different providers stack up against one another, to choose the policy that brings not only the best pricing, particularly when working from home, but the best value.