Do You Qualify for Part Time Traders Insurance?

Have you always had a passion for vehicles? You enjoy repairing them or maybe you enjoy the financial rewards of buying and selling good quality cars? Then you may qualify for part time traders insurance.

What You Need to Qualify

If you tinker with cars on the weekends, fixing them for family members without taking payment, then you will not qualify for this level of cover. In order to qualify you need to either repair or sell vehicles in order to make a profit in your spare time.

It doesn’t matter if you run your business every day when you get home from work or only on the weekends, as long as you are making money from it, you can qualify. The majority of brokers will require certain information and proof to ensure that you can enjoy this cover, you will need to prove that you have full time employment where you pay tax and National Insurance through a PAYE system.

You will also need to keep records of all your sales and repairs done; this is proof that you are making money from your business.

What Cover You Need

If you are welcoming customers and visitors to your business property, even if it is your home garage, you will need public liability cover. Working after hours you are not going to be making a fortune just yet and a claim against you can amount to thousands that you are legally responsible for.

You will also need employers liability cover if you have one or more staff members, but this is not essential if your family member or close friends come over now and again to give you a hand, this is only legally required if you are paying a salary to the worker.

Once you have your liability cover sorted, you need to consider what happens when you drive a customer’s vehicle, and for this you will need road risks cover. You can enjoy a reduced premium if you have a clean driving license and a private no claims bonus against your name. If you are selling cars, you can let customers  have test drives before they buy by having demonstration cover in place, at least if they have an accident the money you spent on the vehicle isn’t lost, you can have it repaired or replaced with ease.

Part time traders insurance does come with a benefit, you don’t have to worry about the money you are spending on the premium as you can include your own personal vehicles and your spouse on the policy, helping you reduce costs by cancelling your private car policy.