Road Risks Insurance: A Comprehensive Guide
What is Road Risks Insurance?
A road risks policy is generally suitable for motor traders operating from home. Although, in some cases, it may also be appropriate for smaller operations with business premises.
Every driver is required to have a road risks policy by law; for most road users this is with a standard car insurance policy. For businesses such as car traders, road risk insurance for the motor trade industry covers all drivers named on the policy using a company or customer vehicle when driven for business use. For example, when a mechanic needs to test drive a customer’s car after work is complete.
What Does Road Risk Insurance Cover?
Dependent on the level of insurance you choose, a road risks policy can cover your vehicles and your customers’ vehicles on UK public roads when used for motor trade business purposes.
There are three levels of cover:
Third party only (TPO): As the minimum legal level of road risks cover, third party only will protect other people, their vehicles, and property involved in an accident that is your fault. The vehicle you are driving is not covered, and neither are you for any injuries you may incur.
Third party, fire and theft: As above, with additional protection for damage to your vehicles due to fire and theft, for example, replacing your vehicle if it is stolen.
Fully comprehensive: With fully comprehensive cover, an accident where you are at fault would also cover your vehicle. Fully comp cover gives you the peace of mind that the costs of repairing your vehicle, or indeed that of a customer, will be covered.
Is A Road Risk Policy Right For My Business?
A road risks policy applies to many types of businesses operating in the motor trade industry who may need to drive a customer’s vehicle or a company vehicle as part of their operations. Examples include car valeters, mechanics, car sales, tyre fitters, MOT stations, etc.
The best way to understand more about the cover you need is to speak to a road risk insurance specialist. We make this easy through a panel of motor trade insurance specialists. They can offer you advice and a no obligation tailored quote when you complete the quote form.

What Is The Difference Between Road Risk And Combined Motor Traders Policies?
Most people think of a combined motor traders policy providing more comprehensive coverage. This is true, but it is not only reserved for motor traders with business premises. It may also be suitable for those operating from home.
As the name suggests, it combines a road risks policy with other covers that your business may require, for example, protection for your building, stock and tools.
If you are unsure which type of policy is suitable for you, take no-obligation advice by completing the quote form and discussing your requirements with the specialists.
Compare Road Risk Insurance Policies
At Quote Goat, we make it easy for our customers to find the right motor trade insurance policy. Compare prices from up to 5 road risks insurance providers using one form. Comparing multiple quotes side by side is a great way, if not the best, to ensure you are getting a good deal on your insurance.
We recommend comparing quotes for road risks insurance each year before renewing your policy. You may find a cheaper deal from another insurance provider when you switch.
Cheap Road Risk Insurance Cover
Asides from shopping around each year to compare prices, you could also make savings on your road risks cover with the following tips:
- Pay close attention to who you name on your policy: young drivers can increase the cost of your cover, particularly for those needing insurance for motor traders under 25 and those with convictions and claims.
- Do not over insure yourself: discuss your exact requirements and ensure that you are not purchasing additional coverage for unnecessary areas.
- One payment as opposed to spreading the cost: you will also be paying interest if you spread the cost of a road risks policy over a year. Although it is not always possible to pay in one go, you will reduce the cost of your cover if you can.
- Maintain your no-claims bonus: linked to point 1 in many ways, having safer drivers on your policy and building up a no-claims road risk insurance bonus will result in discounted cover.
Road Risks Summary
Whether you are arranging trade insurance for the first time or an experienced car dealership owner, compare road risk insurance quotes to protect your business at the right price.
Road Risks Insurance FAQs
Any questions you have our best answered by submitting our quote form and discussing directly with the insurance provider(s) that you speak to. Below are a list of commonly asked questions.
Can road risk policies be tailored to include other covers?
Yes. One of the benefits of discussing your requirements over the phone is that policies can be tailored to include any covers that you may need.
Can a road risk policy be paid for in monthly instalments?
Yes. Policies can be paid for on a monthly or annual basis. It is cheaper to pay annually, if possible, as you will not incur interest charges.
How do I make a claim?
Please speak to your insurance provider to make a claim.
How much does road risks insurance cost?
The cost of a policy depends on a number of factors including your experience, the cover you require, your employees and your premises. The easiest way to get an accurate quote is to submit our form and discuss your requirements with an insurance provider.
Do insurance providers require a policy holder to have experience?
Some do. Therefore, if you are new to the motor trade industry, you are likely to receive fewer quotes than businesses with more experience.