What is Road Risk Motor Trade Insurance?

A road risk only insurance policy is ideal for home motor traders which do not require premises insurance too. Motor trade insurance can be known as ‘trade insurance’ or ‘traders insurance’. Road risk motor trade insurance is a legal requirement for anyone with custody or care of a vehicle which does not belong to them or the business. Premises motor trade insurance will be covered in a combined motor trade policy.

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Road Risk Insurance Policy Coverage

Third-Party Only Road Risk Policy

The cheapest level of cover providing the least level of cover. Covering damages to third parties vehicles and property. This does not include covering a vehicle which you are driving that does not belong to you or the business. Third-party road risk insurance is the absolute minimum requirement by for any motor trader to have.

Third-party, Fire and Theft Road Risk Policy

Covering your business for third party (explained above), and against fire or theft, meaning if a vehicle was under your care and stolen your insurer would cover you.

If there is a business premises, you will need to get combined motor trade insurance to cover you whilst vehicles are stored at the premises.

Comprehensive Road Risk Policy

Besides covering the above, a comprehensive road risk insurance will pay for repairs to a vehicle or property which belongs to the business in event of an accident. If you had an accident in a customers car, you would be covered. You still need a personal vehicle insurance for your own car as this not covered under a motor trade road risk policy.

Businesses We Can Provide Road Risk Insurance Quotes For:

• Home car dealers
• Car restoration businesses
• Home car servicing
• Collection & delivery
• Exhaust & tyre fitters
• Home motor dealers
• Mobile mechanics
• Repossession agents
• Valeting or car detailing businesses
• Vehicle accessory fitters
• Vehicle assessor
• Vehicle delivery / trade plate
• Windscreen fitter
• Van trader

Factors That May Affect Your Policy

Being a non genuine motor trader

To get a motor trade policy, you need to prove you are a genuine motor trader. If you can’t prove your a motor trader, you may be better suited to a fleet insurance policy.

In the event you obtain a motor trader road risk policy and the underwriter feels you are not a genuine motor trader you risk having your policy cancelled and losing the policy’s money.

Years trading

How long you have been trading will have an affect on your insurance. The more experienced your business, the cheaper your quote due to insurers perceiving the first the year of trading as a higher risk with no historical no claims for reassurance.

No claims discount

By having some non claims bonus, you’ll be able to reduce your road risk policy. Sometimes a personal car no claims bonus can be considered.

Being Under 25

Under 25’s motoring insurance is always the most expensive group, however for a commercial motor trade road risk policy these costs can be amplified.

Number of cars needing cover

Having an ‘unlimited cars’ policy if you only ever have care of 1 or 2 cars increases the cost of your policy. Make sure you specify how many vehicles you’ll need.

Types of vehicles you work with

Vehicles such as imported cars, classic or vintage cars, sports / high performance cars cost more to insure on a policy than standard vehicles.

Number of drivers of the vehicles

There is the possibility to get an ‘any driver’ policy, however this is not the cheapest option. You should also confirm who and how many people will be drivers for the best policy rate. By only employing people with have clean licences, no criminal record and over 25 will also help bring your premium down.

Location of your home address

Where your home address is likely to be where you are storing cars overnight, this will have a baring on your policy amount.

Paying in advance

Paying for any insurance policy yearly will save you a small amount compared to paying monthly or quarterly.

Shopping around before your road risk insurance renewal

Shopping around in advance of your policy will help reduce your policy renewal price. The optimum amount of time is 30 days before renewal, any earlier and you limit the amount of underwriters who will quote your insurance.

Important Information To Note About Motor Trade Policies

Vehicle Value Pay outs

The insurance underwriters usually pay out only the trade value of the vehicle. As a result, there may be a shortfall in the amount paid vs insurance claims.

Additional Occupations

Part-time traders will often have other work lines; this may include being an employee for another company or having another business. Informing your broker will mean they may be able to provide one policy for all your occupations.

Domestic use

Most road risk traders policies will not cover domestic use. Personal use car insurance is possible just let your broker know you need domestic use included.

FAQ’s