What Is Part-Time Motor Trade Insurance and Who Needs It?

 

Part time motor trade insurance is a tailored policy for people who run a vehicle business alongside other work. It covers common activities such as buying and selling a car, valeting, repairs and delivering stock during evenings or weekends.

You must normally show you are actively trading — invoices, adverts or sale records usually suffice. A suitable plan can include road risks, public liability and protection for tools, equipment and stock.

Even on reduced hours, risks on the road and at a premises remain real. Notifying your household insurer is vital if customers visit your home, as standard home cover rarely extends to business use.

Specialist brokers can build flexible cover to match how and where you trade, helping you scale a small side hustle into a larger business with the right protection. For tailored advice, see this part-time traders guide.

Key Takeaways

• Designed for people running a vehicle business alongside other work.
• Covers buying, selling, valeting, repairs and vehicle delivery when added to a policy.
• Insurers usually ask for proof of active trading, such as invoices or adverts.
• Notify your home insurer if customers visit, as household cover often excludes business activity.
• Specialist brokers can tailor road risk, liability and equipment cover to suit your needs.

Part-time motor trade insurance at a glance

A quick snapshot of part time motor trade insurance helps you focus on what matters when selling, repairing or moving vehicles alongside other work.

Three core pillars summarise typical protection:

• Road risks — cover to drive customer or stock vehicles, including accompanied demonstration runs.
• Liability options — protection against third‑party injury or property damage.
• Premises cover — security for tools, machinery and any workshop stock kept on site.

Many providers offer comprehensive cover rather than third‑party only, and policies can name both you and your spouse for vehicle cover. Additional business use can be added if you use your own car for multiple roles.

"Get bespoke quotes from a specialist so you can compare cover, exclusions and who can drive before you collect or test a vehicle."

Eligibility typically requires being over 23, actively trading for profit on a part‑time basis and having a clean driving record. A broker can help you get quote options and scale the policy as your business grows.

What is part-time motor trade insurance?

A scaled-down version of standard motor trade cover, this policy suits people who combine vehicle work with another job.

It mirrors full-time motor trade insurance but recognises you work fewer hours. Typical activities included are vehicle sales, diagnostics, servicing, valeting, MOT preparation, tyre and exhaust work, and restorations.

Road risk sections let you legally drive customer cars or newly bought stock for tests and deliveries. Optional extras include premises protection for tools and stored vehicles, and liability cover for third‑party claims.

• Flexible cover—same core protections but for reduced trading hours.
• Broad activity range—from selling cars to preparing vehicles for an MOT.
• Combined options—some insurers call it combined motor trade when road risk, premises and liability are packaged together.

Always disclose precisely what services you offer and read the policy schedule. Accurate declarations protect claims and confirm authorised drivers, valuation limits and any security conditions.

Who needs part time motor trade insurance?

Anyone who buys or works on vehicles for profit, even alongside another job, may need a specialist policy.

Common profiles include small car dealers, evening or weekend valeters, mobile mechanics, tyre and windscreen fitters, delivery agents and classic restorers who operate outside standard hours.

If you touch customer cars, drive them on public roads or hold vehicles for sale, you should arrange road risk cover matched to those activities. Road testing, collection and accompanied demos are typical examples that need declared protection.

• Public liability — vital if customers visit or you work at other people’s premises.
• Employers’ liability — mandatory if you take on staff, even casually.
• Accurate activity description — tell your insurer whether you valet, repair or sell cars; different work carries different risk.

HMRC and the DVLA may treat anyone flipping vehicles for profit as a trader. If you drive, store, repair or sell vehicles for money, you likely need dedicated cover for your motor trade business.

Cover options and policy building blocks

Select road-authorised cover first, then layer liability and premises protection to reflect your daily work. Road risks let you legally drive customer or stock vehicles for collection, delivery and accompanied demos.

Liability cover includes public liability for injury or damage to others, and employers’ liability if you employ staff. These are central to safeguarding the business from costly third-party claims.

Premises protection secures tools, lifts and diagnostic kit. Choose cover that also insures stored vehicles and, where needed, the building itself.

"A combined policy packages road risk, liability and premises for simpler administration and clearer limits."

• Choose cover level: third party; third party, fire & theft; or comprehensive for accidental damage and theft.
• Add-ons: business interruption, legal expenses, breakdown, goods in transit and personal accident.
• Sales-specific option: accompanied demonstration cover for supervised test drives.

Note: Insurers may limit drivers by age, cap vehicle values and exclude certain vehicles. Document services you offer — valeting, servicing or bodywork — so your policy matches real risk.

Review wording annually to keep cover aligned with new activities, locations and equipment values.

How much does part-time motor trade insurance cost?

Premiums depend on the risks you pose: higher-value vehicles, tools or premises will push a quote up, especially in higher-crime postcodes.

Insurers price by exposure. The level of cover you choose, your speciality, how often you operate and where you work all matter. Past claims, driving convictions and years spent as a motor trader also influence the premium.

Road risk scope and authorised drivers make a big difference. Accompanied demos usually cost less than unaccompanied test drives. High-performance cars and expensive stock draw higher rates and limits.

• Ask for multiple quotes — specialist brokers compare several policies and can highlight real differences beyond price.
• Save money by raising voluntary excess, fitting approved locks, CCTV and alarms, and avoiding high-risk vehicle types.
• Consider pay-monthly plans when starting out to manage cashflow while you build a clean claims record.

"Keep the MID accurate, remove sold vehicles promptly and document overnight storage to reduce uncertainty for underwriters."

Remember: fault claims push future premiums up, so self-fund minor damage where sensible. Get quote options at renewal to benchmark your policy and reward improved security or clean driving history.

Working from home on a part-time basis

Running a small vehicle business from your home needs clear steps so customers and kit stay protected.

Tell your household insurer you carry out trade activity at home. Standard home cover rarely protects for business visitors or work incidents. Notifying them avoids problems if a claim arises.

Your part-time motor trade policy can be set up for a home-based operation. It can also be scaled to “with premises” if you use an outbuilding or rented unit.

• Security — fit locks, lighting and CCTV to lower theft risk and help premium ratings.
• Tools & vehicles — policies can protect kit in the garage, in your van or at a subcontractor’s place.
• Visitor safety — keep work areas tidy, sign hazards and define demo zones to reduce public liability exposure.

Accompanied demonstration cover lets you supervise buyer test drives from your address; unaccompanied drives are often excluded. Keep a simple log of overnight storage and security measures to support any future claims.

If operations grow, a broker can help move you to a combined premises policy that suits a larger trader. Review your policy regularly as your tools, vehicles or activity changes.

Why use a specialist UK broker for part-time motor trade cover?

A specialist UK broker speeds up finding a policy that actually fits your vehicle business and working pattern. Brokers know the motor trade market and can match your part-time motor needs with insurers who understand your risks.

Personal service is a key benefit. You often get a dedicated account handler who explains driver criteria, vehicle restrictions and any documentation insurers need to place a policy.

Access to panels means brokers can compare multiple motor trade insurers fast. That helps you get like-for-like quote options and avoid surprises on cover level or exclusions.

• Arrange comprehensive cover, accompanied demonstration or additional business use when needed.
• Tailor liability and premises sections for valeting, repairs or vehicle movement.
• Avoid pitfalls such as undisclosed services, vehicle exclusions or storage conditions that can affect claims.

"Speak to a broker early so you can set realistic expectations on price and scope and plan your part-time operation sensibly."

As your motor trade business grows, a broker will move you from road risk only to a combined policy smoothly. They also support claims, guiding on reporting timescales, evidence and repair processes so you are not handling it alone.

Ready to protect your part-time motor trade business?

A quick inventory of services, drivers and storage locations makes getting the right cover much easier.

List what you do — selling, valeting, repairs, collection and delivery — and note which vehicles you handle. Confirm who will drive and where cars are kept overnight; these facts shape any quote and policy conditions.

Choose the essentials first: road risk, public liability and premises protection, then add options such as accompanied demo or comprehensive cover if needed. If you trade from home, tell your household insurer and record security measures to help with claims.

Get quote support from a specialist broker so you can save money by avoiding unnecessary extras. Review your cover at renewal and keep clear records to stay protected and focused on customers and cars.