Road risk or combined motor trade insurance: Which one is right for you?

By Road Runner

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Motor trade insurance is essential for anyone involved in buying, selling, repairing, or moving vehicles as part of a business. It protects traders from financial losses related to their work with customer or stock vehicles. There are two main motor trade policy types – road risk insurance and combined motor trade insurance. But how do you know which is right for your business?

Let’s explore the differences and help you make an informed decision.

What is road risk insurance?

Road risk insurance is the most basic form of motor trade insurance. It allows traders to drive customer vehicles or stock vehicles on public roads legally.

This type of policy is ideal for:

Home-based traders
Mobile mechanics
Part-time motor traders

There are three levels of cover:

Third party only – the legal minimum, covering damage to others
Third party, fire & theft – adds protection for fire damage and theft
Fully comprehensive – includes damage to your own or customer vehicles

What is combined motor trade insurance?

Combined motor trade insurance offers broader protection. It’s designed for businesses with physical premises and more complex operations.

It’s suitable for:

Garages and MOT centres
Car dealerships
Businesses with employees, tools, and stock

This policy typically includes:

Premises and building cover
Employer’s and public liability
Tools, machinery, and stock protection

Key differences between the two

Feature	Road risk insurance	Combined motor trade insurance
Coverage scope	Basic vehicle use on roads	Comprehensive business protection
Cost	Lower premiums	Higher due to broader cover
Business requirements	Suitable for sole traders or small setups	Ideal for larger businesses with premises and staff

How to choose the right one

When choosing motor trade insurance, consider the following:

Business size and setup: Are you a sole trader or do you run a garage with staff?
Assets and liabilities: Do you have tools, stock, or a premises to protect?
Future growth: Will your business expand? A combined policy may be more future-proof.

Final thoughts

Both road risk insurance and combined motor trade insurance serve different needs. Road risk is cost-effective for small or mobile traders, while combined policies offer robust protection for established businesses.

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Need help choosing the right policy? Speak to our motor trade insurance experts.

If you’re unsure what you need, it’s always best to get a quote or speak to a specialist who understands the motor trade inside out. Need cover without premises? Explore your options with our motor trade insurance experts and find the right protection for your business.

You can get a quote here or call us on 03301 00 87 20.

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Specialists in Motor Trade Insurance

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Road Runner is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.