If you are in the motor trade industry and coming up for your renewal, many traders ask if they can get a part time motor trade insurance instead of a full time policy in order to cut costs.
The major difference between the two is the part time traders will have another occupation that forms their primary means of income. For these traders, the motor trade industry is just a supplementary income.
As well as this, the cover level, unless increased, is often stripped down to a bare minimum level due to the risk profile being less.
Can Part Time Cover be as good as Full Time Cover?
Yes, part time cover can be as thorough as full time cover; it is also likely to be cheaper given your risk profile. The reason the Full Time cover will cost more at this stage is due to your increased level of trade activity. The greater the level or trade activity, the higher the chance of an accident happening that results in a claim.
If you are a self employed individual working as a sole trader for instance where your primary income is also your business, you may be able to gain an extension to your policy that covers your main business, this would combine your policies potentially reducing your insurance costs. Ask our advisor about this.
Will I still need to prove trade activity on a part time policy?
Yes, it is likely you will need to prove a level or trade activity to you insurer. Depending on insurer, on a part time policy it is likely you will have to show proof of buying and selling at least 6 cars for the year. If you are in vehicle repairs, you will need to show multiple receipts or invoices for work you carry out.
Repairing or selling 2 cars a year does not qualify as a business and you will not be able to obtain a policy.