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, our motor trade road risk insurance is for you.

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What is motor trade road risk insurance?

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

Road risk insurance is the minimum legal cover level needed by those working in the motor trade who drive vehicles they don’t own. Examples of motor trades include:

  • Car dealership services
  • Car repair services
  • Vehicle restoration services
  • Valeting services

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

That’s where a motor trade road risk 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.

Get a road risk insurance online quote from us today.

What happens if I don’t have Road Risks insurance in place?

Driving without the correct insurance can have serious consequences, starting with a £300 fine and 6 penalty points if you’re caught driving a vehicle you’re not insured to drive. If the case goes to court, you could get an unlimited fine or even be disqualified from driving.

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 risk insurance 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.

What are the standard features of motor trade road risk insurance?

Depending on the details of your motor trade road risk cover, you could benefit from the following:

  • Cover for damage to vehicles
  • Cover for windscreen and window damage
  • Cover for in-vehicle equipment
  • Cover for replacement locks
  • Cover for loss of use for customers’ vehicles
  • Cover for third-party legal liability

What does motor trade road risk insurance not cover?

Examples of exclusions when you take out motor trade road risk insurance include:

  • Cover for employee vehicles
  • Cover for loss or damage caused by the incorrect fuel
  • Cover for loss or damage caused by theft or attempted theft if the vehicle has been left unlocked
  • Cover for any vehicle being driven by a person not permitted by your Certificate of Motor Insurance.

Who needs road risk insurance?

If you work in the motor trade, you’re likely to need road risk insurance unless there’s no need for you to drive vehicles as part of your day-to-day. However, this is very unlikely.

Even if you’re driving a customer’s vehicle to simply test drive any new repairs you’ve completed, the correct motor trade road risk insurance needs to be in place.

The only time a car doesn’t have to be insured is if it’s been declared SORN.

To be eligible for road risk insurance, you must:

  • Be actively operating a motor trade business for the purposes of selling, repairing, servicing or maintaining motor vehicles for your customers for profit or income
  • Be operating your business on a full or part-time basis
  • Be operating from business premises, from home or on a mobile basis

Require road risk insurance for the movement of your customers’ vehicles while in your custody or control for motor trade business purposes only. In addition, we can provide cover for your own vehicles.

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 road risk 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 road risk insurance 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 motor trade road risk insurance 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 road risk 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 the following:

  • Classic cars
  • Grey imports
  • Modified cars
  • LHD cars
  • Kit cars
  • Q plates
  • Certain commercial vehicles over 3.5 tons
  • Agricultural vehicles
  • Caravanettes/campers

And if you want to cover a different type of vehicle under our road risk trade insurance, just ask us.

Cover options for road risk insurance

We offer a number of different types of road risk insurance 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 road risk 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 when securing your road risk insurance?
  • 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:


Why choose Road Runner for your road risk insurance?

We’ve been supporting the motor trade for over 25 years, which means we know all road risk insurance cover options inside out. To find out more, get a road risk insurance quote online or speak to our team of experts. Remember, there’s no obligation to follow through if you decide it isn’t for you.

In the meantime, we recommend checking out our Feefo reviews to see what past customers have said.

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