Road Risk Insurance
If you’re a full time or part time motor trader, or work in any area of the motor trade dealing with vehicles, you need road risk insurance to run your business.
Road risk cover is a the minimum legally required form of motor trade insurance for anyone in the motor trade. It’s designed to cover your business in the event that any damage or injury is caused by a vehicle in your car as part of your trade.
You can get road risk cover in three different levels. Third party is the most basic, and covers damage caused by a third party, but not by you as the insured party, or by any of your staff, for example. If you want more comprehensive cover, you can make sure you’re protected from costs whoever causes the damage, and you’re protected against fire and theft as well.
WHAT TYPES OF COVER ARE AVAILABLE
ON A ROAD RISK INSURANCE POLICY?
THIRD PARTY
ONLY
Covers damage to other people and their property in the event of an accident – so if you damage another vehicle, your insurance will pay out to fix the vehicle you hit. Third party cover doesn’t insure you for damage, fire and theft of your own vehicles.
THIRD PARTY FIRE AND
THEFT (TPFT)
Third party cover, plus you’re insured for fire damage to, and theft of, your vehicles.
COMPREHENSIVE
COVER
Covers you for third party, fire and theft, and your own vehicles. If you were in an accident that was your fault and you were injured, you can also claim for this on a comprehensive policy.
WHAT AM I COVERED TO DO WITH A ROAD RISK POLICY?
A road risk policy lets you drive vehicles that you don’t own, as well as vehicles that you do own, as part of your business. If you’re driving vehicles that you’re buying and selling, you’ll need trade plates to comply with UK law.
If you have a premises that you trade from, you may be better off with combined motor trade insurance which gives you road risk cover and cover for your premises and equipment.
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