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Eamonn Turley

What the Experts Say

Eamonn Turley Founder of MultiQuoteTime

" The minimum legal level of Road Risk Cover is third party, but only comprehensive cover will provide cover for customer cars plus your own vehicles against any damage incurred in an accident which is your fault.  For many, this is the preferred option, especially if you are dealing with high value vehicles"

Guide To Road Risk Only Insurance 

By Eamonn Turley
Eamonn Turley Insurance Expert

Eamonn Turley has a wealth of experience within different insurance sectors. Through hard work and over time, he has gained expertise in digital marketing and user interface design. Elements that are crucial to any successful online business. The key aim is to develop websites that are intuitive, fast to load and provide insurance quotes tailored to your needs.

Expertise: Digital Marketing, Insurance, Home Insurance, Vehicle Insurance, UI Design
from the MultiQuoteTime Editorial Team - Fact checked

The team at MultiQuoteTime will fact-check content to ensure accuracy at the time of writing. In addition, we also review and update content on an ongoing basis. We aim to keep the content fresh and useful. If you are considering applying for any of the products, please take note that it is important that you read the terms and conditions that are applicable.

July 2023

In simple terms, a road risk insurance allows you to drive any vehicle trusted to your care. 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 insurance 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. 

What Is A Combined Trader Policy? 

This is the term used to refer to a motor trade insurance policy that has combined several elements specific to the requirements of that particular business. When we talk road risk this a core element of any motor trade policy, but you can then add cover for business premises, cover for stock and liability under one combined policy a with a single renewal and payment date. Although most providers will allow flexible monthly payments spread over 10 or 12 months.

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. 

How Much Does Road Risk Insurance Cost?

The road risk insurance cost 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 You Can 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 insurance provider. 

Road Risk Insurance FAQ's

Is Part Time Road Risk Insurance Available?

Many get into the motor trade business as a side hassle or a part time activity. They can stay part time or take the plunge and go full time. Given this demand, part time motor trade insurance is widely available with insurance brokers that specialise in the motor trade industry, broker examples include Bollington Motor trade Insurance and Tradex.

Do I need road risk cover?

Yes, you will need a form of road risk trade insurance to run your business if you are a motor trader or within your business you are dealing with vehicles. This includes those that service vehicles and repair vehicles, but also extends to car valeting, indeed anything that you have custody of a vehicle other than your personal car.  

Which Businesses Require Road Risk Insurance?

  • Auto Electricians and Mechanics
  • Body Repair Shops Coach Builders
  • Car Delivery Agents
  • Those in the Car Valet Business
  • Classic Car Repair Shops 

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