Part-time motor trade insurance for flexible cover
Part-time motor trade insurance from a panel of trusted UK insurers
Insure your part-time motor trader business with zero hassle
Buying and selling cars on the side, repairing vehicles from home, or running a small part-time motor trade operation all require specialist insurance.
Standard personal car insurance won’t cover you for any of these activities — and driving a vehicle you’re buying or selling without the right cover could leave you uninsured and personally liable.
At insurd, we arrange part-time motor trade insurance for traders at every level — from those buying and selling a handful of cars a year to those building towards a full-time operation. We work with a panel of leading UK insurers to find flexible cover that protects your activities without paying for more than you need.
24/7 claims service
We’re here for you round the clock when you need us most.
Fairer prices for all
As a specialist insurance broker, we search our panel of leading UK insurers to find the right part-time motor trade policy for your budget.
World-class support
You’ll get your own UK-based human to look after you for the duration of your policy.
We use a combination of technology and a wealth of experience to give you unrivalled cover and more affordable motor trade insurance prices.
What is part-time motor trade insurance?
Part-time motor trade insurance is a specialist policy designed for individuals who carry out motor trade activities alongside other work or commitments. Whether you buy and sell vehicles privately, repair cars for profit, or run a small vehicle preparation business, you need motor trade insurance as soon as your activities constitute trading.
A common misconception is that buying and selling a small number of cars falls within the scope of a personal car insurance policy. It does not.
As soon as you are purchasing vehicles with the intention of selling them for profit, even occasionally, you are legally trading and require motor trade cover. Without it, you are uninsured for any claim arising from those activities.
Types of cover
Road risk insurance
Road risk insurance is a fundamental component of motor trade cover, including part-time traders. It allows traders to legally drive vehicles on public roads for purposes such as test drives, deliveries, or customer collections. There are three levels of road risk cover:
- Third-party only (TPO): Covers damage to other people’s property or injury to others. It’s the minimum legal requirement.
- Third-party, fire and theft (TPFT): Includes TPO cover and adds protection against fire damage and theft of vehicles.
- Comprehensive: Offers the highest level of protection, covering third-party risks, fire, theft, and damage to the trader’s vehicles.
Combined insurance
Combined motor trade insurance provides broader cover, encompassing road risks and additional protections such as:
- Business interruption: Protect income from insured events disrupting operations.
- Premises insurance: Protects business premises against risks like fire, theft, and damage.
- Material damage: Cover for vehicles or tools in your possession.
- Employer’s liability: Mandatory for businesses with employees, covering workplace injuries or illnesses.
- Public liability: Safeguards against claims for injury or property damage.
- Tools and equipment: Protection for the tools and machinery essential to your operations.
- Extra drivers: Include individuals who assist with trading activities.
How much does part-time motor trade insurance cost?
Typically, part-time traders insurance premiums can vary, influenced by the cover level and specific details of your business.
Key factors affecting how much motor trade insurance costs:
Type of cover
Road risk only or road risk with combined cover, and the level within each (TPO, TPFT, comprehensive), all affect your premium. Most part-time traders start with road risk only and add combined cover as their operation grows.
Nature of business
The volume of vehicles you trade, the frequency of your activity, and whether you carry out repairs as well as buying and selling all influence your premium. Lower-volume, lower-frequency trading carries a lower premium.
Location and security
Where unsold vehicles are stored is a key factor. Secure off-road storage or a locked garage significantly reduces theft risk compared to vehicles stored on a public road or driveway.
Vehicles covered
The value and type of vehicles you trade directly affect your premium. Part-time traders who deal in high-value, classic, or modified vehicles pay more than those trading in standard second-hand cars.
Driver details
Your age, driving history, and claims record are the primary driver-related cost factors. As a part-time trader you’re typically the only named driver, so your personal record has a significant influence.
Policy customisation
Adding tools cover, public liability, or material damage to a road risk policy creates a combined policy. Part-time traders often need less combined cover than full-time businesses — our team can help you find the right balance.
Is part-time motor trade insurance cheaper?
Part-time motor trade insurance is generally more affordable than full cover, but the exact price difference depends on the policy and insurer. Part-time insurance tends to cost less because:
- Reduced liability: With fewer transactions and working hours, your overall liability is lower, which can lead to lower premiums.
- Lower-risk exposure: Since you spend less time on business activities, insurers often see you as a lower-risk customer.
- Limited cover: Part-time policies may include restrictions on the number of vehicles covered or the hours you can operate.
How to reduce your part-time trader insurance cost
Beyond the factors above, there are several practical steps that can help reduce your motor trade insurance costs.
- Keep your trading volume accurate — Declaring a higher volume of vehicles than you actually trade increases your premium unnecessarily. Accurate declarations ensure you’re only paying for the risk you carry.
- Store unsold vehicles securely — Vehicles stored in a locked garage or secure off-road location attract lower premiums than those kept on a public road or open driveway.
- Build your No Claims record — Even as a part-time trader, avoiding unnecessary claims builds a claims history that reduces your premium over time.
- Consider road risk only if you don’t have premises — If you trade from home without a workshop or forecourt, road risk only cover may be sufficient — combined cover adds cost for premises protection you may not need.
For more ways to reduce your motor trade insurance costs, see our motor trade insurance cost guide.
Part-time motor trade insurance frequently asked questions
What is part-time motor trade insurance and do I need it?
Part-time motor trade insurance is designed for people who buy, sell, or repair vehicles alongside other commitments — whether that's a full-time job, family, or other business interests. Even if you only trade occasionally, you're legally required to have at least third-party road risk cover as soon as you start using vehicles for trade purposes. A standard car policy won't cover part-time trading activity.
What's the difference between road risks and combined motor trade insurance?
Road risks insurance covers you to drive vehicles on public roads as part of your motor trade activities — whether they're your own vehicles or customers'. Combined motor trade insurance goes further, adding protection for your premises, tools, equipment, stock, public liability, and employers' liability. If you work from premises or have employees, a combined policy is usually the better choice.
Is there a limit on how many vehicles I can buy and sell on a part-time policy?
This varies by insurer. Some part-time policies include restrictions on the number of vehicles you can have in stock at any one time or the number of transactions per year. Our team will make sure the policy we arrange accurately reflects your trading volume so you're properly covered.
How do I prove I'm a legitimate part-time motor trader?
Insurers require evidence that you're genuinely trading, even on a part-time basis. This can include invoices or receipts from vehicles bought and sold, tax records showing motor trade income, or a business bank account. Our team can guide you through exactly what's needed when you apply.
Can I drive my own car on a motor trade policy?
This depends on your insurer and the specific policy. Some motor trade policies will extend to cover your own personal vehicle, but there are usually restrictions — particularly for high-value, high-performance, or luxury vehicles. Let us know when getting your quote and we'll check what's possible.
Who actually underwrites my policy?
We're a broker, which means we arrange cover on your behalf with a handpicked panel of trusted insurers. You'll see exactly who's underwriting your policy before you commit to buying.
Why can I trust insurd?
We've been arranging insurance for over 50 years — now trading as insurd — and we're authorised and regulated by the Financial Conduct Authority (Firm Register Number: 308508), and over a thousand real customers have shared their experiences with us on Trustpilot.
You can verify our status directly on the FCA register.
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