What is a road risk policy?

27 Jul, 2022

A road risk policy is a type of insurance that covers you to drive other people’s cars on the road, as part of your business. You might be a sole trader dealing in second-hand cars, a valeter or vehicle delivery driver, or a garage owner. If you drive other people’s cars as part of your work, you need road risk insurance.

What does road risk insurance cover?

Road risk insurance is there in case someone else’s vehicle gets damaged, or causes damage, while you’re driving it in the course of your business. It also covers any vehicles you buy and sell when you’re transporting them, if you have comprehensive cover. For example, driving them back from an auction house or private sale.

Unlike regular car insurance, road risk insurance covers the trade value of the vehicle, rather than its market value. You can get road risk cover in three levels: third party only; third party, fire and theft; or comprehensive.

What cars can I drive on a road risk policy?

You can drive any car you have in your possession for business purposes, and cars belonging to customers, on a road risk policy. This is the case whether you’re holding these vehicles permanently or temporarily. And, you can have named drivers on the policy who can also drive those vehicles.

How do I get road risk insurance?

Talk to a motor trade insurance provider to get road risk insurance. You’ll need to be 25 or over and have lived in the UK for 3 years or more, to qualify for UK-based road risk insurance.

 

Want to know more? Speak to our helpful motor trade insurance team of experts, on 0121 248 9300, or send us a message below