Think Insurance, UK, Walsall
closeup of a tyre

Motor Trade Road Risk Insurance

Motor Trade Road Risk insurance is the minimum type of cover offered to traders, and is available in the three main levels of insurance.

Road Risk Only insurance is a type of Motor Trade insurance aimed at traders who do not require any premises cover or cover for any liabilities. This is the cover usually taken by smaller businesses or traders working from home or running a mobile business. 

What Does Motor Trade Road Risk Insurance Cover?

When applying for a Road Risk Only insurance quote, you will be offered a choice of three levels of cover:

  • Third Party Only – A Motor Trade Road Risk insurance policy with Third Party Only cover will often be the cheapest policy on offer, and this is for good reason. Like the Car insurance equivalent, it offers the minimum level of cover to meet the legal requirements. If you are unfortunate enough to be involved in an accident, whether that vehicle is your own or a customer’s, you would only be covered for third party damage, and not for damage caused to the vehicle you’re driving.

  • Third Party, Fire and Theft – As well as offering the legal minimum that Third Party Only covers, with TP, F&T cover, the vehicles in your possession will also be insured against fire damage and theft.

  • Comprehensive – If you decide to take out a Comprehensive Road Risk insurance policy, then you would get the protection offered by Third Party, Fire and Theft cover, plus all of the vehicles registered to you (or in your custody) would be covered for any damage caused where you are deemed to have been at fault.

When deciding what level of cover you need, it’s best practice to take a look at your motor trade business and figure out the risks you and your business pose to an insurer. For example, if you operate your motor trade business from home and park cars on the street, then those vehicles may be vulnerable to vandals and so having a Comprehensive Road Risk insurance policy, or even a Third Party, Fire and Theft policy, may give you greater peace of mind.

row of cars

Who Needs Road Risk Motor Trade Insurance?

Due to the minimal cover offered as part of a Motor Trade Road Risk insurance policy, it can be ideal for traders that operate a small motor trade business, such as a part-time trade car business, people who trade from home, or those who are just getting started in the trade. 

If your motor trade business does start to grow, and you take on new employees, purchase expensive equipment, or move premises and start operating from a designated site, you may decide you need a Combined Motor Trade insurance policy instead.

motor trade insurance road risk UK cover

Why Do I Need Motor Trade Road Risk Insurance?

The main reason that, as a trader, you need a Road Risk Motor Trade insurance policy is that it’s a legal requirement in the United Kingdom in order to drive a vehicle on UK roads. If you drive vehicles (either your own or your customers’) as part of a motor trade business, you will need an insurance policy that reflects this, which is why you cannot be insured as a motor trader under a regular Private Car insurance policy. Not only would this be against the terms of your Car insurance, you would probably incur numerous fees for constantly changing the insured car on your policy.

Is A Road Risk Insurance Policy Right For Me?

Road Risk insurance isn’t just for sole traders or those that are in vehicle sales. With Liability insurance cover available, such as Public Liability, Product Liability and Employers’ Liability, a Road Risk policy could be taken out by all sorts of traders. This includes mobile mechanics that need Product Liability cover adding to their Road Risk insurance, or a mobile valeter that hires two employees and therefore will need Employers’ Liability cover. 

Keep in mind that you (or your business) might not always be suited to a Road Risk insurance policy, and upon renewal or if your circumstances change during your policy, it’s worth re-evaluating your level of cover. For example, if your motor trade business is starting to grow, you may need to seek a Motor Trade Combined insurance policy to accommodate the more complicated nature of your business.

Still not convinced? Here are a few more benefits available as part of our Road Risk Insurance policies:

  • Flexible Payment schemes available
  • Cover for customers’ vehicles while you’re working on them
  • Cover for any vehicle in your possession
  • Additional Liability products available
  • Convictions Considered

Get A Motor Trade Road Risk Insurance Quote

If you are still unsure what level of cover you need for your Road Risk insurance policy, then feel free to call a member of our Motor Trade insurance team on 0330 127 4100, and you we will be able to discuss your needs further to help you decide which type of cover is right for you and your business.

However, if you are ready for a quote, you can call the number above or click ‘Get a Quote’ below and fill out our form.