Think Insurance, UK, Walsall
fitting a tyre

What's The Difference Between Road Risk Insurance & Combined Insurance?

The difference between Motor Trade Road Risk Only and Combined explained.

If you’ve ever taken out a Motor Trade insurance policy you will probably have been asked whether you would like a Road Risk Motor Trade insurance policy or a Combined Motor Trade insurance policy, or maybe you are about to get your first Trade Car insurance policy and aren’t sure which type of Motor Trade insurance you will need…Here we explain the difference.

To fully explain what the differences are, we must first explain what each type of policy is.

What Is Road Risk Insurance?

road risk insurance policy cover

A Road Risk Only insurance policy is a type of Motor Trade insurance designed for traders that are just starting out, motor traders that operate from home, or traders with small businesses. The main draw of a Road Risk policy is that it’s usually cheaper, but this is because it only covers the road risk aspect of the policy and not the premises or its contents. Like a regular Car insurance policy there are three basic levels of cover:

Road Risk Third Party Only – This is the most basic level, and the legal minimum Motor Trade insurance policy. It only covers your liability if you are involved in an accident that’s your fault.

Road Risk Third Party, Fire & Theft – In addition to Third Party, you will be covered for fire damage to, and theft of, the car, however this excludes damage to the car sustained in an accident that is deemed your fault.

Road Risk Comprehensive – Like the Car insurance version, this will cover you for everything mentioned in Third Party, Fire & Theft but will also cover you for any damage to a car you’re driving if you have an accident and are found to have been at fault.

If your motor trade business needs any additional Liability cover, whether that’s Employers’ Liability insurance, Product Liability insurance or even Public Liability insurance, they can be added onto a Road Risk policy.

What Is Combined Motor Trade Insurance?

A Combined Motor Traders insurance policy is designed for traders with sizeable and more complex trade businesses. As well as covering you to drive on UK roads with the cars you deal with, and any liability products, it can cover many other aspects of your motor trade business, including:

  • The motor trade building you operate from
  • Stock of vehicles
  • General stock stored at your business premises
  • Money kept on site
  • Portable tools
  • Machinery and plant
  • Business interruption

Do I Need Road Risk Or Combined Cover?

This can depend entirely on your business or what type of motor trade business you operate from. For example, if you’re a trader selling vehicles from your home, off your drive, then Road Risk might be sufficient. However, if you’re a mechanic that operates from a premises away from home, you may want to take out a Combined Motor Trade insurance policy because of the tools, ramps and other equipment essential to your job, whereas a small vehicle sales business trading from a forecourt or showroom will need a Combined insurance policy to cover the stock of vehicles, general stock and any money kept on site.

Difference Between Road Risk & Combined Insurance infographic

Need To Speak To A Motor Trade Specialist About Your Insurance?

Whether you want to upgrade, amend or change your Motor Trade insurance policy from Road Risk to Combined, or you are yet to take out a Motor Trade insurance policy, we can help. Click ‘Get a Quote’ below and we’ll get back to you.

However, if you would like to speak to someone about your Motor Trade insurance options, you can call us on 0800 221 8077 and we will help design the perfect Trade Car insurance policy for you.