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
As a part-time motor trader, you may buy, sell, or repair vehicles while balancing other commitments, making it essential to have flexible, affordable motor trade insurance that protects your activities.
In partnership with some of the leading UK insurers, we’ll not only provide you with a better part-time trader’s insurance deal featuring the best available cover, but we will also work hard to retain you as a customer year after year.
24/7 claims service
We’re here for you round the clock when you need us most.
Fairer prices for all
We compare the market to find the right deal for you as a part-time motor trader.
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.
With over 50 years of experience providing top-quality insurance for the motor trade, you can be sure we’ve got you covered.
What is part-time motor trade insurance?
Part-time traders insurance is a motor trade policy that is a specialised cover designed to meet the needs of part-time motor trade businesses, offering essential protection without paying for unnecessary extras.
Motor trade insurance is not just a legal requirement for many businesses but also a crucial risk management tool. Without proper insurance, a business could face significant financial losses from accidents, theft, or damages. Here are some key reasons why cover insurance is vital:
- Legal compliance: Ensures you meet legal obligations for activities like test-driving or delivering vehicles, avoiding penalties.
- Financial protection: Protects against theft, damage, or accidents involving vehicles or stock, keeping your business secure.
- Peace of mind: Lets you trade confidently without concern over potential claims or financial risks.
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
Is the level of cover selected third-party only (TPO), third-party, fire and theft (TPFT) or comprehensive.
Nature of business
The volume and vehicle type you trade, along with any additional services like repairs, can impact your premium.
Location and security
Secure storage facilities or lockups for unsold vehicles can lower premiums, while open storage may increase risks.
Vehicles covered
Costs will depend on whether you trade standard cars, vintage models, or high-value vehicles.
Driver details
Age, driving history, and claims records for named drivers on the policy are key factors in determining costs.
Policy customisation
Policies with additional cover, such as for tools or liability, ensures better protection but may increase costs.
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:
- 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.
- Reduced liability: With fewer transactions and working hours, your overall liability is lower, which can lead to lower premiums.
Part-time motor trade insurance frequently asked questions
What is motor trade insurance and do I need it?
Motor trade insurance is a specialist policy for anyone who works with vehicles for profit — whether you're buying and selling cars, repairing, valeting, recovering, or testing vehicles. If you carry out any motor trade activity, even part-time, you're legally required to have at least third-party road risks cover. Standard personal car insurance won't cover you for business use.
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 and policy. 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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