Whether you’re driving customer vehicles or new purchases you’ve made at auction, we can provide you with insurance that helps keeps you safe.
What is road risk insurance?
Road risk insurance is cover specifically designed for motor traders who drive vehicles they don’t own, including cars bought for the business. These might be vehicles you’ve purchased at auction and intend to resell.
Road risk insurance is the minimum level of cover required by law. As such, you must have it when operating as a motor trader or driving vehicles in any way that relates to your business. Motor traders require road risk insurance, whether they work from home, operate a garage, or run a mobile business.
What does road risk insurance cover?
Road risk insurance covers specific areas that apply to your role as a trader. However, it is not a ‘complete’ cover for all trade activities and instead focuses on driving vehicles within the remit of the business.
But what does road risk insurance NOT cover? Well, there are a few exclusions to this cover, and some of these may surprise you. For example, if you run a tuning business, you may find road risks insurance doesn’t cover customers’ high-performance sports cars.
To make it clear, here’s what road risk insurance typically does and doesn’t cover.
| What road risk DOES cover | What road risk DOES NOT cover |
| Any customer vehicles left in your care. | Family fleets - these require a multi-car personal insurance policy. |
| Vehicles regarded as ‘in the trade,’ such as cars bought at auction or from main dealer trade-ins. | Vehicles that are excluded from the policy, such as high-end performance cars. These will be clearly defined in any insurance agreement. |
| Some business vehicles such as vans, although conditions apply. | Other vehicles not used in the trade. The policy stipulates only trade vehicles that are either being worked on or to be sold are covered. |
The main thing to note here is that you should always seek clarity from your insurer if there are any exemptions or rules you’re unsure about. For example, if you want road risk insurance to cover your work vehicle, you should let the insurer know before any quotes are generated.
Does road risk insurance cover you to drive any vehicle?
No. Road risk insurance is specifically for vehicles you drive as part of your trade. It does not cover personal vehicles, family fleets, or other vehicles. However, some policies and insurers are willing to configure cover to suit your specific needs—so it’s worth talking to our team if you have a clear requirement, such as a work van you’d like on the policy.
Levels of cover for road risk trade insurance
So, now you know what the policy covers—but we still need to explore what level of cover is provided. Like personal insurance, there are different levels of cover: third-party only, third-party fire and theft and comprehensive. Each of these covers also comes with an excess agreement, so make sure you’re happy before taking out a policy.
