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What Insurance Do You Need for Selling Cars part time?

Selling cars part-time can be a fun hobby and a great way to make a bit of extra money for yourself. Some of the people that venture into this endeavour are those who have retired and have the spare time, while others already have an occupation but enjoy working with cars as a side-line or way of making some extra money. Whatever your reason for getting in to the motor trade, there are several things that you may need to keep in mind when looking for car insurance for selling cars. If you work in the Motor Trade industry it is essential that you and your vehicles are protected by insurance, regardless of whether you’re working on a Part-Time or Full-Time basis.

Legal requirement

It is a legal requirement for anybody who works in a Motor Trade related occupation, whether it’s full time or part time, to be covered by the correct type of basic level of insurance. This is to protect you, your customers and your vehicles, and this can also cover potential customers test driving your cars before they make a decision to buy it.

There are several levels of cover that are offered with a Motor trade policy, and here are just a few of the most common ones;

Third Party Only – This is the minimum level of insurance that is offered by insurers. It can often be the cheapest level of insurance, because in the event of an accident that you happen to be at fault of, the insurer will only pay-out for the damages to the Third-Party vehicle. Your vehicles are not covered by this insurance in this circumstance.

Essentially Third Party only is there to cover the cost of any damages caused to any third-party vehicles that you are involved in an accident with.

This cover may not be the most suitable cover for Motor Traders due to most occupations revolving around the use of several of their own vehicles – such as car sales.

Third party, Fire & Theft – This policy is essentially the same as Third Party only, but with the added benefit that it offers protection to the vehicles under your cover in the event of any fire damages or potential theft.

On average it is slightly more expensive than the standard Third Party Only cover as it offers a type of protection over your vehicles also. Like a Third Party Only policy, you cannot claim for your own vehicles in a situation where you are at fault in an accident.

Product Liability

This is an additional level of cover that can be added to a pre-existing Part-time Motor Trade policy. Product Liability is there to cover you in the unfortunate event that a mishap occurs after providing a service or fitting a product into a customer's car. This means that should a car you have sold encounter any problems after the sale is made, you may be covered under Product Liability section of your policy.

Public Liability

Many traders, both part-time and full-time, may have potential customers visiting their place of business, this includes if you are merely selling cars from your home. Due to this, it’s important that traders protect themselves and their business practises in the event that an accident may occur on your premises. This includes people tripping over equipment, slipping on oil patches or gaining injury while on your premises.

Public Liability is there to protect you from claims that could potentially cost you and your business thousands of pounds. Having this additional cover may prevent you from being out of pocket in the event that this could occur, having to foot the bill yourself.

Conclusion

As there is a large range of Motor Trade covers that are offered, along with additional protection and policies, it is essential that as a part-time Motor Trader you do the correct research and know exactly what you need from your insurance. Think about every liability that comes along with your line of work and all the possible scenarios that could happen. If you are looking for car sales insurance then it could be good to look into insurance policies that are specialised for car sales.

You may find you don't need a lot of these covers due to the area you work in. Working sales from a front lawn at home may be considered much safer than working from a garage forecourt…find out exactly what you need and protect your business.