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What Is Road Risk Only Insurance? 

Road Risk only insurance is a policy taken out most often by people that work with cars to be able to take the cars on the road, even though they don't own them or have a specific policy in their name for each car. 

Common uses of road risks insurance include motor tradesmen, such as mechanics that have to transport the cars they work on, car sales such as showrooms and auctions, as well as some business-use vehicles to assist tradesmen on the job. 

This type of road risk policy, or road risk only policy, will cover the cars you work on for third party only, third party, theft and fire, or comprehensive. The options can be more or less flexible depending on the policy provider.

The road risk only policy will not include any other business cover, such as public liability, employer's liability, commercial, or commercial fleet insurance, but a road risk policy can be taken out with a commercial policy. 

Road Risk Insurance Under 25

When insuring traders that are under 25, the same principles apply as those concerning regular motor insurance for younger drivers; it's notably more expensive. That's due to the fact that they are less experienced on the road, have less maturity, and are therefore more likely to get into an accident. 

Young motor workers or sole traders that are in need of not only their own motor insurance but also road risks insurance will not like to hear about this increased expense, but to combat the hiked premiums they can seek specialist under 25 policies. Due to the targeted focus on road risks insurance for younger drivers that goes into underwriting these policies, they are often worked out to be a better rate, more relevant to the driver, and with more comprehensive cover than those provided from general insurers. 

Why Do I Need Motor Trade Road Risk Insurance?

Road risk insurance is a minimum legal requirement for motor traders that drive their cars. It is illegal to drive a car that you’re not insured for.  

Although some companies will just put it down as too much faff and hire a car carrier lorry or other alternative, the costs of these alternatives could work  out more expensive than applying for trade insurance.

If you have trade plates for taxed or untaxed cars, this or an alternative type of insurance is a minimum legal requirement before you drive off in the trade-plated car. 

How Much Will A Road Risk Insurance Policy Cost?

The cost of road risk insurance will vary depending on certain features of the business and the insured, but can start at as low as, £300 per year. 

  • Driver age: The younger drivers, as noted above, and also the older drivers, are often less trusted by insurers, as they’re statistically more likely to get in accidents than those of middle age with good experience behind the wheel and quick reaction times. For this reason, up to a threshold, the older drivers will save on road risk costs. After a certain age, the premiums will go back up to account for the slower reaction times of older people. 
  • Driving licence: A cleaner licence with no points, or convictions will look much better to an insurer, often reducing your premium by well over 50%. A conviction will often see the premium rise by 100%. 
  • Type of business being insured: The type of business can affect the liability, as each trade will operate under different circumstances, and pose their own challenges and hazards to cover. Higher risk trades, such as car scrap, are generally more expensive to insure than motor showrooms.
  • Sum insured of the vehicles covered: The premium of the road risks cover will hinge on the type of cars that are driven and the amount of cover that is required. 
  • Extent of cover: When you place your policy you can opt for the extent of cover that suits your needs, or appetite for risk. You are obligated to get at least third party insurance, but most companies will also opt in to third party, fire, and theft, or comprehensive, to cover the vehicles they drive, as well as any third parties’. 
  • Estimated mileage: The premiums will also rise, as the estimated mileage rises. The longer you’re on the road with the cars, the more likely an accident will occur. 

Can I Drive Any Car On A Road Risk Insurance Policy?

Not too long ago, comprehensive motor insurance cover allowed any motorist to drive your car as standard, but this type of cover is less common these days. Instead, for anybody but the owner or a named driver on the policy to drive the car, a special road risks policy must be held by the non-owner. 

The owner or named driver must give permission and hand the car into the care or custody of the person named on the road risks cover. At this point, the policy will cover the road user, so long as the car is within the value that is allowed on the road risks policy and a car in care or custody of the company, driven for the purposes specific to the owner’s needs. 

How Can I Save Money on Road Risk Traders Insurance?

Save money of rod risk traders insurance by following the following tips and advice.

Many policies will have an optional, or a written in limit of the value of a car that can be driven. This can affect the premium, so it's worth looking for a low max value if you’re looking to save. 

Trader Policies will often be a large package policy aimed at providing cover for all of your business needs, you may be able to save by having a clear idea of what you want covered before browsing the policies on offer. 

Other tips to save include increasing your excess, pay your premium annually rather than monthly, and finally make sure your premises are as secure as possible before applying, to get the best rates from your underwriter. 

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