Are you a part-time car dealer, or do you tinker with vehicles as a side hustle? In either case, you must have heard of “part-time motor trade insurance” floating around in conversations. But what exactly is it, how does it work, and do you need it? Well, we are going to answer all those questions and more in this comprehensive guide.
What is Part Time Motor Trade Insurance?
Part-time motor trade insurance, also known as “Road Risk Only” or “RRO” insurance, is a specialized type of insurance policy designed for individuals who work in the motor trade industry on a part-time basis.
This policy covers various activities, such as buying, selling, repairing, and maintaining vehicles as a side business. It differs from a standard motor trade policy as it takes into consideration the reduced risk profile of a part-time motor trader.
Who Needs Part-Time Motor Trade Insurance?
You may need to compare motor trade insurance if you fit into any of the following categories:
- Part-time vehicle dealers
- Car restorers or collectors who buy and sell cars as a side business
- Mechanics who operate a part-time workshop or offer mobile repair services
- Vehicle valeters or detailers working independently or as a side hustle
Remember, it is essential to be honest about the extent of your motor trade activities when applying for insurance to get the most suitable coverage.
Types of Cover Available
Part-time motor trade insurance policies offer various types of coverage. Here are some of the most common ones:
Road Risks
This is the core element of any motor trade policy, covering you for driving vehicles in connection with your business. It comes in three levels:
- Third-party only
- Third-party fire & theft
Public Liability
This coverage is essential for traders who deal with customers and their property, protecting you against claims for injury or damage caused by your business activities.
Employers’ Liability
If you employ any staff, even on a part-time basis, you’re legally required to have this insurance. It protects your business against claims for injury or illness caused by work.
Material Damage
This protects your tools, stock, and business premises against damage. While this may not be necessary for a home-based or mobile part-timer, it can be helpful if you have separate business premises or valuable equipment.
Top Tips for Finding the Best Part-Time Motor Trade Insurance Coverage
Now that you’re aware of the types of coverage available let’s explore how you can find the best insurance plan to match your needs:
- Assess Your Risk Level
First, conduct a thorough risk assessment for your business, taking into account the type of motor trade activities you’re involved in, the number of vehicles you handle, and the location and security of your property.
- Review Your Specific Needs
After assessing your risks, make a list of coverage options that are essential for your business. For instance, if you’re working from home without staff, the Employer’s Liability Insurance might not be relevant to you, but Road Risk Insurance would be.
- Compare Policies and Providers
Shop around and compare multiple traders insurance quote to find the most competitive coverage options, rates, and claims support. Reach out to brokers, check online reviews, and talk to fellow part-time motor traders to gather feedback on the best insurance companies.
- Tailor Your Coverage
Opt for a policy that allows you to tailor the coverage to your specific needs and requirements. Flexible plans can help you stay protected, avoid over-insuring yourself, and save on costs.
Wrap it Up
Finding the best part-time motor trade insurance coverage doesn’t have to be a hassle. By following our guide and being proactive in assessing your needs, comparing your options, and seeking personalized coverage, you can safeguard your business interests and keep stress at bay.