Motor Trade Road Risk Insurance

Whether you take the wheel of your customers’ vehicles or drive your own as part of your day-to-day business, then Road Risks cover is for you. And that’s exactly what we offer.

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In your own or your customers’ cars – we’ll keep you covered

When you work in the motor trade, at some point you’re bound to end up with a customer vehicle in your care. And while that vehicle is under your responsibility, you need to make sure you’re covered while you carry out your work. 

That’s where a motor trade road risks policy comes in. This type of cover is specifically designed to ensure you meet the minimum insurance requirements when you’ve got a customer vehicle in your care, custody or control. But it also covers any vehicles owned by you, as the Policyholder, and your spouse if they’re a named driver. 

What does Road Risks insurance 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
  • Customers’ vehicles while they are your responsibility – but you can only use them for motor trade use.

While your Road Risks policy doesn’t define vehicles by a specific registration number, we still need you to tell us what vehicles you own – whether they’re for your own use or held for trade purposes. Don’t worry, as long as you’ve already told us the vehicles you work with, we don’t charge an additional premium per vehicle.

A few things you should consider

Who needs to drive?

Only drivers named on the Certificate of Motor Insurance are covered, unless you’ve included ‘accompanied demonstration’ use. This lets you accompany a driver who isn’t named on the policy for a test drive when they’re looking to buy the vehicle.

Who owns the vehicle?

The policy covers:

  • Vehicles owned by the Policyholder or the Policyholder’s spouse (if they are a named driver)
  • Vehicles that are 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’s the vehicle used for?

A vehicle must be used in line with the cover that’s provided, so this can be:

  • Motor trade use only
  • Social, domestic and pleasure
  • Commuting or additional business use.

The use provided will often be different for each driver so make sure you check your Cover Note or Certificate of Insurance, which will detail this.

Please note that customers’ vehicles can only be driven for motor trade purposes – you cannot drive them for any other reason.

What type of vehicles do you work with?

Generally speaking, if you work with cars, motorcycles and light commercial vehicles, this policy should be fine for you. However, you must tell us the type of vehicles you work with so we can make sure you have the right cover. This is because certain vehicle types are excluded unless we have specifically extended the cover in writing. You can find these listed on your policy schedule so please check it carefully.

When we arrange your policy, 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. While certain terms may apply to different vehicles, we do generally accept classics, grey imports, modified, LHD, kit cars, Q plates, certain commercial vehicles over 3.5 tons, agricultural vehicles and caravanettes/campers. And if you want to cover a different type of vehicle, just ask us.

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:

Other cover we offer

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