Motor Trade Insurance – Working From Home
Compare quotes from specialist motor trade insurance brokers who cover home-based traders. Whether you are buying and selling cars from your driveway, working as a mobile mechanic, or starting a new motor trade venture from home, we can help you find competitive cover.
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Why compare working from home motor trade insurance with MultiQuoteTime?
If you drive vehicles you do not own as part of your home business, you will need a specialised road risk motor trade insurance policy to meet the legal minimum required coverage.
Finding the right work-from-home motor trade business insurance policy can be time-consuming, especially for a new business venture. Many main street brokers are geared towards forecourts and commercial premises, which means home-based traders are often turned down.
The good news is that specialist policies exist specifically for people trading from their driveway, garage, or even the street. Through MultiQuoteTime, you can access a panel of specialist motor trade brokers who understand home-based setups and regularly cover traders without commercial premises, helping you find a competitive cost for your new start-up.
A Guide To Working From Home Motor Trade Insurance
Many car traders and mechanics work from home, the lucky ones have lots of extra space, making working from home the most cost-effective way to get started in the car trade or mechanic service business. For some, it may be just a part-time activity or a hobby that makes a little money on the side. For others, it is an easy way to start a new business without having to rent out expensive business premises.
Working from home is not only the reserve of the part-time many full time traders successfully trade from home. A motor trade insurance policy can be tailored to your individual requirements. Perhaps you only need road risk insurance to drive cars that are entrusted in your care, or you need a road risk combined with other cover elements. What ever style of motor trade business that you operate, a policy can be tailored to fit your needs without having to pay for elements that are not necessary.
Working From Home Car Trade Insurance Options
Working as a car dealer is a popular full and part time trade, home car traders insurance is available at 3 levels that cover different things.
Build Your Policy Around Your Setup
Motor trade insurance for home traders is not one-size-fits-all. The following cover elements can be combined based on your individual requirements:
The legal minimum — covers you to drive customer vehicles, your own stock, and any vehicle connected with your home-based trade on public roads.
Protects you if a customer is injured or their property is damaged while visiting your home to view a vehicle, collect a repair, or take a test drive.
Covers your tools, equipment, parts, and vehicle stock against theft, fire, or damage while stored at your home. Your home insurance will not cover business items.
Protects you against claims after a sale — for example, if a buyer alleges the vehicle was misrepresented. Important if you sell via AutoTrader or eBay.
Allows prospective buyers to test drive vehicles before purchase. Can be arranged for both accompanied and unaccompanied test drives from your home.
Can You Become A Car Trader Working From Home?
Most car traders start off working from home without premises, in these circumstances part time motor trade insurance is sufficient. Working as a car dealer without premises from home has obvious advantages, it gives you an opportunity to explore the business without significant overheads and risk. If you find it successful and need extra space, you can then look at getting your own premises or forecourt.
Working from home is also an attractive option for mechanics, they will need a good size garage and extra parking space, no need for expensive business premises. Later, as your car dealing business grows, you can consider relocating the business to find a dedicated business park or forecourt.
Car dealing is one example of working from home within the motor trade sector, other popular work from home trades include mechanics, Tyre Fitters, Car valet service and mobile mechanics. The panel can provide mobile mechanic insurance and other trade related cover tailor exclusively to your individual requirements.
Proof of Trading: What Home-Based Traders Need to Show
Insurers are more cautious with home-based applications because some applicants misrepresent hobby activity as a genuine business. To get accepted and keep your premiums competitive, you should be prepared to provide evidence that you are actively trading.
If you don’t have a full trading history yet, don’t worry — many insurers on the panel will accept new ventures. You may be asked to provide:
New ventures may pay slightly higher premiums initially, but this typically reduces after your first year of claim-free trading.
HMRC does not set a specific number of vehicles. Their rules state that anyone whose sole object of acquiring a vehicle was to resell it at a profit is considered to be engaged in trade — regardless of volume. If you are regularly buying and selling for profit, you should register as self-employed with HMRC and get the right motor trade insurance in place.
Pros And Cons Of Selling Cars From Home
Starting a new venture as a trader from home has many attractions. While often associated with younger traders, many experienced professionals also choose this model in the UK. While the advantages far outweigh any limitations, we have included some potential challenges below.
Some Advantages
- ✓ Freedom to work flexible hours and saving on fuel and travel associated with a new business.
- ✓ Start-up costs are significantly less than having to rent a forecourt or garage.
- ✓ Risk of being overstretched financially is reduced, giving you time to grow organically.
Possible Limitations
- ✕ Depending on your setup, working from home may occasionally come across as unprofessional.
- ✕ The local Council may impose limitations on how many vehicles can be stowed on private property.
- ✕ Neighbours: Ensure they are aware of your intentions, especially if dealing with older salvage vehicles.
Your New Venture Roadmap
4 steps to starting a home-based motor trade
Register as self-employed with HMRC. Choose a unique business name and check for domain, social media, and trade name availability to build your brand identity from day one.
Verify your local council rules on storing commercial vehicles at home. You may also need to obtain a second-hand motor dealer licence if you trade in Scotland.
Before driving any vehicle you don’t own, get a road risk motor trade insurance policy at minimum. Consider a combined policy if you’re storing stock, tools, or having customers visit your property.
Organise your driveway or garage for stock. Create a website or list on AutoTrader and eBay to build your online presence and start attracting customers.
Frequently Asked Questions
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