Jeffrey Wade
Road risk insurance is a type of insurance that covers individuals who work in the motor trade industry and drive vehicles they don't own as part of their day-to-day business. It is the minimum legal cover level required for those who work in the motor trade industry, including car repairs, servicing, buying, and selling. Road risk insurance covers damage to third-party property or individuals, as well as theft and fire damage. It is available at different levels of cover, including third-party only, third-party fire and theft, and comprehensive cover. The cost of road risk insurance varies depending on factors such as the level of cover, the specific operations of the business, the types of vehicles covered, and the profiles of individuals named on the policy.
| Characteristics | Values |
|---|---|
| Who is it for? | Motor traders who drive vehicles they don't own |
| Who needs it? | Motor traders who buy, sell, repair, service, or maintain vehicles |
| Who doesn't need it? | Motor traders who don't drive vehicles as part of their work |
| What does it cover? | Driving vehicles in connection with your business on the road |
| What types of vehicles does it cover? | Cars, vans, pickups, commercial vehicles, and "in the trade" vehicles |
| What levels of cover are available? | Third-party only, third-party fire and theft, and comprehensive |
| How much does it cost? | From £6.66 a week for third-party only cover to £87.50 per month for comprehensive cover |
| What factors influence the cost? | Cover level, business operations, location, security measures, vehicle types, and driver profiles |
| What doesn't it cover? | Employee vehicles, loss or damage from incorrect fuel, unauthorised drivers, and other people's vehicles |
| Is it a legal requirement? | Yes, it's the minimum legal requirement for driving vehicles you don't own |
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What You'll Learn
Who needs road risk insurance?
Road risk insurance is a legal requirement for many businesses and individuals working in the motor trade industry. It is designed for those who buy, sell, repair, service or maintain vehicles that do not belong to them. This includes mobile mechanics, tuners, fitters, tyre fitters, panel beaters, and car dealerships. If you work from home, are based at a premises, or operate on a mobile basis, road risk insurance is necessary to protect you from risk.
Road risk insurance is particularly important for those who drive vehicles that they do not own as part of their day-to-day business. This could include test-driving a customer's vehicle, driving a customer's vehicle to test new repairs, or simply moving a customer's vehicle. In the motor trade, this is a common occurrence, and without the correct insurance, you could face serious consequences. Fines for driving without the correct insurance start at £300 and 6 penalty points, and if the case goes to court, you could be disqualified from driving.
Road risk insurance is also beneficial for those who buy and sell vehicles, as it protects your investment while allowing you to sell vehicles quickly. It can cover various vehicles, including cars, vans, and pickups, whether personal or commercial.
Road risk insurance is available at different levels of cover, including third-party only, third-party fire and theft, and comprehensive. The cost of road risk insurance will depend on factors such as the level of cover, the specific operations of your business, the location of your business, and the security measures in place. It is important to tailor your insurance policy to fit your specific business needs.
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$9.99 $9.99
What does road risk insurance cover?
Road risk insurance is a type of insurance that covers vehicles that are being driven for motor trade purposes. It is designed for full-time or part-time motor traders who buy, sell, repair, service or maintain vehicles. This includes mobile mechanics, tuners, fitters, tyre fitters, panel beaters, and car dealerships.
Road risk insurance is a legal requirement for those working in the motor trade industry who drive vehicles they do not own. This includes driving customer vehicles for test drives, repairs, or any other reason the vehicle is in their custody or control. It is the minimum level of cover needed to legally drive these vehicles and protects against the unique risks associated with handling multiple vehicles and dealing with the public.
There are three levels of road risk insurance cover: third-party only, third-party fire and theft, and comprehensive. Third-party only covers damage to third-party property or individuals but does not cover the vehicle being driven. Third-party fire and theft include third-party cover and protect against fire damage and theft of vehicles. Comprehensive offers full protection, including the cost of repairs, even if an accident was the fault of the driver.
Road risk insurance can also cover the policyholder's own vehicles and their spouse's vehicles if they are a named driver. It can also cover business premises, stock, computers, phones, and other equipment.
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Types of road risk insurance
Road risk insurance is the minimum legal cover level needed by those working in the motor trade who drive vehicles they don't own. Motor trade businesses that buy, sell, service, or repair vehicles are legally required to have road risk insurance. This includes tyre, exhaust, and accessory fitting, as well as valeting services.
There are different types of road risk insurance policies available, depending on the needs of the business. Here are some of the options:
- Third-Party Only Insurance: This is the most basic level of road risk insurance and is typically the cheapest option. It covers any damage to a third party, including property or individuals injured or damaged, other than the policyholder and the vehicle they drive.
- Third-Party Fire and Theft: This option includes third-party cover and also protects the vehicle in the policyholder's possession in case of theft or fire.
- Comprehensive Insurance: This level of cover includes all the benefits of third-party fire and theft cover, as well as protection for accidents and incidents for any customer vehicle in the policyholder's care. Comprehensive insurance may also cover the policyholder for personal injury. However, it's important to note that most motor trade policies will only pay the trade value of a written-off vehicle.
In addition to these basic levels of cover, road risk insurance can also be tailored to specific needs. For example, if a business buys and sells vehicles, they may want to include accompanied demonstration use, which allows potential customers to test drive the vehicles. Another option is to include vehicles in transit, which covers the movement of vehicles on a recovery truck or trailer.
For larger motor trade businesses, combined motor trade insurance may be more suitable. This type of policy can cover business premises, tools, stock of vehicles, money stored on-site, and other aspects of the business. It can also include additional liability cover, such as employers' liability insurance, product liability insurance, or public liability insurance.
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The cost of road risk insurance
To reduce the cost of road risk insurance, you can increase the excess, which is the amount you contribute towards a claim. A higher excess can lead to lower premiums, but it's important to remember that you'll need to pay more out of pocket if an accident occurs. Protecting your no-claims bonus can also impact the cost of your premium. By paying a small additional premium, you can safeguard your bonus and potentially lower your overall expenses.
The level of cover you choose also affects the price. Third-party only insurance covers damage to a third party, excluding the policyholder and their vehicle. Third-party fire and theft insurance offer the same benefits while also protecting the vehicle in your possession in case of theft or fire. Comprehensive insurance provides the most extensive coverage, including accidents and incidents for any customer vehicle in your care, and may even cover vehicles in transit.
Road risk insurance is essential for anyone in the motor trade industry who drives vehicles they don't own, including sole traders, dealers, garages, and mobile mechanics. It ensures you meet the minimum insurance requirements when a customer's vehicle is in your care, custody, or control. Additionally, it covers any vehicles owned by the policyholder and their spouse if they are a named driver.
When considering the cost of road risk insurance, it's important to remember that driving without proper insurance can lead to serious consequences. Fines, penalty points, court appearances, and even disqualification from driving can result from inadequate insurance coverage. Therefore, it's crucial to assess your specific needs and choose the appropriate level of cover to ensure adequate protection.
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Why get road risk insurance?
Motor trade road risk insurance is designed for individuals who work in the motor trade industry and drive vehicles they do not own as part of their day-to-day business operations. This includes those who repair, maintain, buy, or sell vehicles. It is a legal requirement for these individuals to have road risk insurance, and failure to do so can result in serious consequences, including fines, penalty points, and even disqualification from driving.
Road risk insurance is essential for protecting yourself and your business from potential risks and liabilities associated with driving and working on customer vehicles. It covers you when you are test-driving a customer's vehicle, performing repairs, or simply moving a customer's vehicle within your custody or control. This type of insurance ensures that you meet the minimum insurance requirements while also providing coverage for any vehicles owned by you or your spouse if they are a named driver.
Additionally, road risk insurance can provide coverage for accidents, theft, or fire involving customer vehicles in your care. It can also include protection for personal injuries and liability claims. This insurance is typically tailored to your specific needs, whether you work from home, business premises, or on a mobile basis.
The cost of road risk insurance can vary depending on factors such as your driving experience, the area you trade from, and your claims history. It is available at different levels of cover, including third-party only, third-party fire and theft, and comprehensive insurance. Comprehensive insurance covers damage to a car you are driving if you are at fault in an accident, and additional liability cover can be added to a road risk policy if needed.
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Frequently asked questions
Road risk insurance is a type of insurance that covers individuals working in the motor trade industry when they drive vehicles they do not own.
Road risk insurance is a legal requirement for motor traders who drive vehicles that don't belong to them. This includes those working in car repairs, servicing, buying, selling, valeting, and dealerships.
Road risk insurance covers damage to third-party property or individuals, as well as the vehicle in your possession in the event of theft or fire. Comprehensive cover also includes accidents and incidents for any customer vehicle in your care, as well as personal injury.
The cost of road risk insurance varies depending on the level of cover, the specific operations of the business, the location of the business, security measures in place, and the types of vehicles covered. Third-party only cover can start from as little as £6.66 a week, while comprehensive cover can start from £87.50 per month.
There are several insurance providers that offer road risk insurance, including Road Runner, ChoiceQuote, Insurd, and Jensten Insurance Brokers. These providers can help tailor a policy to your specific needs and offer different levels of cover.
