Motor trader types and business models are not a single descriptive class. Each varies and the people operating them all have different needs and requirements. Not all motor traders are full time. In a recession or during a time of increased inflation, Some individuals choose to turn their hobby or main job into an extracurricular part time motor trader's business. Which by law requires similar insurance cover to a full time trader. This is why pay as you go motor trade policies exist. To alleviate the strain on the cash flow purse, spreading monthly payments to enable annual or seasonal coverage. If your part time or full time trader business will involve selling cars, trucks or renovating old cars, then classic car insurance and cover for demonstrating, delivering and collecting vehicles can all be wrapped up in a pay as you go trade policy whether you're working from home or a business premises. Pay as you go or monthly motor trade insurance cover is just as accommodating and flexible as annual cover which enables initial entry into the motor industry a lot easier.
As an example a truck driver who has recently passed certification may already be spending out on hire / rental charges for a truck or bought outright and servicing a monthly loan. Fuel costs, maintenance, parking, storage, marketing will all cost on a monthly basis, spending outright on an annual motor trader insurance policy is going to exhaust an already highly pressured cash flow. Seeking out pay as you go trader insurance policies to fit your exact needs is normal and essential, and any broker or direct to consumer insurance agency will be willing to supply.
Pay as you go or pay monthly motor trade policies are ideal for part time new start up motor traders. Operating in the vehicle repossession arena, being a car valeter, a breakdown and recovery agent, overseeing vehicle repairs within your own property's borders or flipping vehicles for sale from the home are all acceptable business models which pay as you go motor trade business insurance covers and which most of these traders gravitate to. If a trader wants to expand a hobby into a business or needs more work on the side of a full time job, the last thing they wish to do is spend x amount on annual insurance in one go.
The single most advantageous aspect of a pay as you go trade policy is the low level cost of entry to ensure that you are covered legally to operate. Most business ideas do not need a licence to operate but in the motor trade, insurance is a necessity which comes at a high price to pay to ensure business safety and security for both you and your customers. This payg trader cover can be morphed into a cost less than the advertised price too. How?
Motor trade policies are works of art. Especially if you know what you don't need. If a full time stand alone, customer facing staff operation then of course public liability insurance, premises cover, employer liability insurance and business interruption insurance is a must.
However you could choose to leave out goods in transit cover, insurance for driving in Europe while upping coverage for an all road risks policy that perhaps allows for personal effects, medical expenses, windscreen and even repair or replacement of the vehicle if the accident was found to be caused by the insured. In essence, buying a pay as go trader insurance or pay monthly need not be more expensive than an annual policy, even if the broker charges interest on monthly payments. Cheaper pay as you go trader insurance is made possible by ensuring you only buy the insurance required and add or remove when needed.