Road Risks Insurance

If you are involved in the motor trade and have your own vehicles, or drive customers' vehicles in the course of your business, you probably need Road Risks cover.

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Whatever you do in the motor trade, it is likely that at some stage in carrying out your business activities, you will have customer vehicles in your care, custody or control.

 

A motor trade road risks policy is specifically designed to ensure you meet the minimum insurance requirements when this happens. It also covers vehicles owned by the Policyholder or the Policyholder's spouse (if they are a named driver). Where the Policyholder is a Limited Company or Limited Liability Partnership the vehicles must be owned by the Ltd Co or LLP.

What does it cover?
  • Named drivers only.
  • Vehicles owned by the Policyholder or the Policyholder's spouse (if they are a named driver). Where the Policyholder is a Limited Company or Limited Liability Partnership the vehicles must be owned by the Ltd Co or LLP; or
  • Customers' vehicles, whilst in your care, custody or control – only in respect of motor trade use.

The policy does not define vehicles by a specific registration number. But we still need you to tell us about those owned by you, whether for your own use or held for trade purposes. We don’t charge an additional premium per vehicle – as long as it is of a type you have already told us you work with!

Things to consider:

Who needs to drive? 

Only drivers named on the Certificate of Motor Insurance are covered, unless you have included Accompanied Demonstration Use and driving by any unnamed driver is for that purpose.

Who owns the vehicle? 

The policy only covers those vehicles owned by the Policyholder or the Policyholder's spouse (if they are a named driver) and vehicles in your care, custody, and control for motor trade purposes. Where the Policyholder is a Limited Company or Limited Liability Partnership the vehicles must be owned by the Ltd Co or LLP.

What is a vehicle to be used for? 

Certain restrictions do apply. It must be used in accordance with the cover provided. This can be motor trade use only, social domestic pleasure and commuting or additional business use. The use provided will often be different for each driver. The Cover Note or Certificate of Motor Insurance will detail this. One specific restriction is that customers' vehicles can only be driven for motor trade purposes – you cannot drive them for any other purpose.

What type of vehicles do you work with? 

You must tell us the type of vehicles you work with, so we can ensure you have the cover you require. Certain vehicle types are excluded unless we have specifically extended cover in writing. These are listed on your policy schedule – please check this carefully. Generally speaking, if you work with cars, motorcycles and light commercial vehicles, this policy should be suitable for your needs. We will ask you exactly what type of vehicles you work with, and let you know if any of them are restricted in any way. Specific examples of acceptable vehicles include classics, grey imports, modified, LHD, kit cars, Q plates, certain commercial vehicles over 3.5 tons, agricultural vehicles and caravanettes/campers. (Please note that certain specific terms may apply.)

Cover Options

We can offer a number of different types of cover. Whether you need these will depend on your attitude to risk and the type of work you undertake in the motor trade.

Optional Additional Extras:
  • Level of cover: Third Party only, Third Party Fire & Theft or Comprehensive. Don’t assume Comprehensive will cost a lot more – you may be surprised at how much cover you can afford.
  • Accompanied demonstration use: If you Buy and Sell Vehicles, do you want to allow potential customers to test drive them? It may help you secure a sale and may not cost as much as you think.
  • Vehicles in Transit: If you are involved in moving vehicles (perhaps on a recovery truck or trailer) then our standard policy covers your minimum insurance requirement in doing so. But if you have Comprehensive cover, you can extend this to cover vehicles in transit as well.
  • Vehicles at business premises: If you are involved in vehicle sales from commercial premises, you may want to extend your Comprehensive policy to cover vehicles whilst left at the business premises. (Note: if you trade from home, this cover is automatically included.)
  • Protected No Claims Bonus: These days, your NCB can make a big difference to your premium, but it can quickly be lost, even if the accidents are not your fault. Why not protect it, for a small additional premium?
  • Goods, Plant, Machinery, Stock & Portable Hand Tools in Your Vehicle: If you are mobile or offer a mobile service you may have a significant amount of goods, plant machinery, stock, and portable hand tools in your van. You may want to include cover for these items. We can provide this, including overnight theft cover.
​​Optional Products:
  • Motoring legal solutions – is an optional product that provides cover for legal costs and expenses incurred in pursuing claims arising from a non-fault accident involving an insured vehicle.

For more information on the specific cover provided and exclusions that apply, please take a look at our relevant Policy Wordings and Summaries: