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How Motor Trade Insurance Works

Taking out Motor Trade Insurance (this may also be referred to as Road Risks Insurance) is an important obligation for motor traders and/or anyone who is involved in dealing with vehicles in the motor trade industry.

How does Motor Trade Insurance work?

A Road Risk Insurance policy works by allowing motor traders to be able to drive any vehicle (vehicle restrictions may apply) on the road for business purposes; it is an ideal policy for garage owners and car dealers. You are breaking the law if you are a motor trader and you don’t have Motor Trade Insurance. The legal minimum is Third Party Only insurance, and this is needed if the motor trader does any of the following:
  • Buys and sells vehicles
  • Has to drive a customer vehicle
  • Undertakes vehicle services, repairs, and restoration
  • Is an MOT centre or garage owner
If a motor trader and their employees are named on the policy, they are able to drive any vehicles related to their motor trade work. If a motor trader is involved in an accident, the Road Risk Insurance policy covers any damage to the other vehicle. This differs from a personal car insurance policy that instead has a named driver and named vehicle in the policy; Motor Trade Insurance policies only name the driver.
Levels of cover include: Third Party, Third Party Fire & Theft, and Comprehensive. You can read more about Motor Road Risks Cover here.

Can I get Road Risks Insurance if I’m under 25 years old?

It is possible to obtain a Motor Trade Insurance policy if you're under 25, but this can be difficult. Road Runner is pleased to be able to offer Motor Trade Insurance to motor traders aged 23 and up. Motor trade policies for under 25s can be expensive, so you may need to consider if you can afford to take out cover for an employee under the age of 25.

How much does Motor Trade Insurance cost?

A lot of factors come into play when calculating the cost of Motor Trade Insurance, such as a motor trader’s: age, location, field of motor trade work, number of employees, and overall motor trade experience.
For instance, city postcode areas such as London are rated more highly than postcode areas in the countryside, and you will have to pay more if your motor trade business is in a city.
Motor traders that have a no claims bonus can not only expect discounts, but options to protect motor trade bonuses. Are you in need of a Motor Trade Insurance quote? Get a quote with Road Runner Insurance today!

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

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