Skip to content

Motor trade insurance

Road Risk Motor Trade Insurance

the driving-only level of trade cover, for traders with no premises to protect

The section of a motor trade policy covering the driving of vehicles in your custody. It comes in third party, third party fire and theft, and comprehensive, and it covers nothing beyond the road.

  • Three levels of cover
  • Mobile and home-based traders
  • No premises section
  • FCA authorised and regulated

Quick answerRoad risk is the part of a motor trade policy that lets you drive vehicles belonging to somebody else. It comes in the same three levels as a car policy and it stops at the driving: nothing on your premises, nothing in stock, no liability to customers. For a mobile or home-based trader that is often all that is needed. Tell us the trade, and specialist UK brokers can quote.

Have a unit or a forecourt? Our combined motor trade insurance page covers the business as well as the driving.

At a glance

Road Risk, in Short

Six things to know about the driving-only level of trade cover.

It covers the driving only
Nothing standing on your premises
Three levels, as on a car policy
Third party upwards
Drivers are named or eligible
Age conditions usually apply
There is a vehicle value ceiling
Check it before taking in a supercar
Theft cover starts at the middle level
And carries conditions
Stock is not covered
That needs the combined side

The basics

What the Driving-Only Level Actually Buys You

Road risk answers one question: may this person drive this vehicle on the road as part of the business. Everything else about a motor trade policy sits outside it.

Driving vehicles in your charge

The whole point of the section.

Liability to other road users

Present at every level.

Fire and theft

From the middle level upwards.

Accidental damage

Comprehensive only.

Vehicle value limit

A ceiling per vehicle driven.

Trade use only

Social driving needs adding.

How it works

How Road Risk Cover Is Actually Arranged

The process is short. What matters is describing the business accurately, because a motor trade quote is built on what you do rather than on what you own.

  1. Who is in the business

    Owners, staff and anyone driving.

  2. What the trade is

    Described honestly rather than broadly.

  3. Describe the work

    Buying and selling, collections, repairs at the customer or valeting.

  4. Weigh the quotes up

    Price against limits and conditions.

What it covers

What Road Risk Pays For and at Which Level

The three levels behave much as they do on a car policy, except that the vehicle being driven is usually not yours, which is the whole reason the section exists.

What each level of road risk cover reaches
SectionWhere it sitsWhat to know
Driving vehicles in your chargeThe core sectionThe reason road risk cover needs trade cover at all
Liability to other road usersEvery levelInjury and damage caused while driving
Fire and theft of those vehiclesFrom the middle level upSubject to the security agreed
Damage to the vehicle drivenComprehensive onlyRepairs to a car in your charge
Liability to the publicA separate sectionCustomers on your premises
Tools and equipmentCombined policiesUsually with a single item limit
Business interruptionCombined policiesLoss of income after a covered event

Check the single vehicle limit. Road risk policies cap the value of any one vehicle you may drive, and a customer arriving in something expensive can sit above it without anybody noticing until afterwards.

What it leaves out

What Road Risk Deliberately Leaves Out

Every policy has edges. On road risk cover they fall in fairly predictable places, and none of them is a surprise once somebody has pointed them out.

Your own private car

Unless it has been declared on the policy.

Driving outside the trade use

Personal journeys need adding, not assuming.

The cost of putting work right

The repair itself sits with you.

Breakdown and wear

Ordinary deterioration is not damage.

Drivers who fall outside the terms

Age and licence conditions apply.

Vehicles standing on your premises

Road risk covers driving, not storage.

The three levels

Third Party, Fire and Theft and Comprehensive

The choice between the three is the same trade-off as on any motor policy, made harder by the fact that the vehicle damaged may belong to a customer.

Third party only

Injury and damage to others.

Third party fire and theft

Adds fire and theft of vehicles driven.

Comprehensive

Adds damage to the vehicle itself.

Any driver road risk

Wider driving, higher price.

Named driver road risk

Fewer people, lower price.

Restricted mileage options

For genuinely occasional trading.

Only trading part of the week? See part-time motor traders insurance.

Who it suits

Traders Who Need Nothing More Than This

Road risk suits anybody whose business has no premises worth insuring and no stock standing anywhere that a policy would need to protect.

Mobile mechanics

Working at the customer.

Home-based traders

A handful of vehicles at a time.

Mobile valeters

Travelling to the vehicle.

Vehicle delivery drivers

Moving cars for others.

Part-time traders

Trading alongside a job.

New traders starting out

Before taking premises.

Working at the customer? See mobile mechanic insurance.

Enough or not enough

When Road Risk Is Enough and When It Is Not

The test is simple: is there anything standing still that you would be sorry to lose. If there is, road risk on its own will not answer.

Road risk cover set against a combined policy
Road riskCombined
Vehicles being drivenCoveredCovered
Vehicles parked on siteNot coveredCovered
Tools and equipmentNot coveredCovered
Customers on your premisesNot coveredCovered

Working out which you need? See combined motor trade insurance.

Cost

What Sets the Price on Driving-Only Cover

The trade, the drivers, the level chosen, the vehicle values and the claims record. We do not print average premiums.

Why the drivers lead here

Road risk is almost entirely about people, because the vehicles change constantly. Age, licence history and years in the trade therefore do more to the price than anything else.

Why vehicle values are asked about

An insurer is agreeing to cover whatever you happen to be driving, so it sets a ceiling. A trade handling prestige stock needs that limit raised rather than hoping it will stretch.

What the quote is rated on

The main factors

  • Trade carried onWhat the driving is forBase
  • DriversAge, licence and experienceRate
  • Level of coverThird party upwardsRate
  • Vehicle valuesThe most expensive you handleRate
  • Claims recordRecent yearsAdjust
Security at the premises and key control both change the terms offered

Keep the driver list short

Named driving is cheaper.

Set the value limit properly

Rather than discovering it late.

Build years in the trade

Experience is rewarded.

The details

Four Things a Road Risk Policy Asks of You

These are the practical terms behind road risk cover. They are easy to meet and easy to forget, which is exactly why they are worth listing.

  1. Add drivers before they drive

    Not after the first shift.

  2. Keep to the security agreed

    Especially where keys are kept.

  3. Give an accurate turnover

    Understating it is a disclosure problem.

  4. Stay inside the vehicle value limit

    It is a ceiling, not a guideline.

Quote checklist

What a Broker Asks Before Quoting Road Risk

A broker will ask for all of this. Gathering it first turns several phone calls into one.

The people in the business

Owners, employees and family helping out.

What the business does

Buying and selling, collections, mobile repair or valeting.

The premises

Home driveway, street parking or a rented space.

Annual turnover

A realistic figure, not a hopeful one.

The level of cover

Road risk, or road risk and premises.

Claims history

Five years is usually asked for.

Comparing

Reading Two Quotes on the Driving Terms

Price is the easy part to compare. What follows is the rest of it, and it matters more.

Who is covered

  • Named drivers or any eligible driver
  • Age and experience limits
  • Family members and part-time help

What is covered

  • Road risk level offered
  • Premises, stock and tools
  • Liability limits carried

On this trade specifically

  • Single vehicle value limit
  • Any driver or named
  • Social use included

Ask whether social use is included. Trade use alone is narrower than it sounds. Unfamiliar terms are explained in our plain English jargon guide.

Cutting costs

Bringing a Road Risk Premium Down Over Time

The levers are named drivers, a realistic value limit, experience and a clean record. We publish no savings figures.

Name the drivers

Open driving is the expensive option.

Set a realistic value ceiling

Paying for more than you handle is waste.

Accumulate trade experience

It shows in the terms.

Keep the description accurate

Broad descriptions cost more.

Park sensibly overnight

Even without premises cover.

Compare every renewal

Road risk pricing moves a great deal.

Glossary

Road Risk Terms, Explained

The words that come up when only the driving is insured.

Motor trade road risk
The section that lets you drive vehicles that are not your own.
Combined motor trade
One policy covering the driving, the premises and the liabilities together.
Trade plates
Plates allowing an untaxed vehicle to be moved for business reasons.
Stock vehicles
Cars and vans held for resale, declared at a total value.
In your charge
The phrase describing a vehicle you are responsible for.
Test drive cover
Cover while a prospective buyer drives a vehicle.
Products liability
Cover for harm caused by work or parts after the job is finished.
Employers liability
Required cover where you employ anybody, with limited exceptions.
Compulsory excess
The part of every claim you pay, set by the insurer.
Turnover
What the business takes, and one of the main rating factors.

Why MyMoneyComparison.com

Why Road Risk Traders Compare Through MyMoneyComparison.com

MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces motor traders to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Using us is free.

1

One form, one business

Describe the business once, instead of repeating yourself to each broker.

0

Advice given

We are an introducer, not a broker. We do not sell policies and we do not recommend one insurer or product over another. Read our editorial policy.

FCA

Authorised and regulated

MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.

2013

Incorporated

A UK company since 2013. FCA authorisation is separate and later; the register carries its date.

Read our customer reviewsSee what people say about us on Trustpilot

FAQs

Road Risk Motor Trade Insurance FAQs

Answers on the three levels, driving customer cars, working from home and what is left out.

Is road risk enough on its own?

It is if nothing about the business stands still. Once there are vehicles parked on a site, tools in a unit or customers visiting, the driving-only level leaves too much of the business uncovered.

Does it cover a customer car parked at my house?

Generally not. Road risk covers driving rather than storage, so a vehicle sitting on your driveway overnight is usually outside it unless something has been added specifically.

Can I drive any vehicle under road risk?

Any vehicle in your charge for trade purposes, up to the value limit on the policy and within the driving conditions. Both of those are worth reading rather than assuming.

Which level should I take?

It depends on what you would do if you damaged a customer vehicle. Third party leaves that with you, which is a difficult conversation in a trade that runs on reputation.

Is social use included?

Sometimes, sometimes not. Many traders want to use a trade vehicle privately, and it needs to be added rather than assumed. Ask directly, because the wording varies.

Can I add premises cover later?

Yes. Moving from road risk to a combined policy is a normal step once a business takes a unit, and it is usually done at renewal rather than mid-term.

Do I still need public liability?

If anybody visits you or you work at their premises, it is worth having. Road risk does not include it, and a mobile trader working on a customer driveway is exposed without it.

What about tools in my van?

Not covered by road risk. Tools need their own section or a separate policy of their own, which mobile traders frequently discover only after a van break-in has already taken several hundred pounds of equipment out of the back.

Is motor trade cover really needed for road risk cover?

Once you handle vehicles belonging to somebody else, yes. A private or ordinary business policy is not written for vehicles in your custody, and the gap only becomes visible at claim time.

Road risk or combined: which should I take?

Road risk if the work happens at the customer or on the road. Combined if you have premises worth protecting, stock on site or tools you could not replace quickly.

Can family members be covered to drive?

They can, where they are declared and meet the age and licence terms. Insurers expect to be told about anyone who drives, including people helping out at weekends.

Is there a minimum age for drivers?

Trade policies generally set one, and it is often higher than on a private policy. Younger drivers can usually be added, but the terms and the excess will reflect it.

Are vehicles covered while parked at the premises?

That depends on whether you have taken premises cover. Road risk is about driving; vehicles standing on site need the combined side of a policy to be properly protected.

Is key storage a condition?

Almost always. Insurers set out where keys must be kept and how, and a claim following keys left in or near a vehicle is the one most likely to be refused.

Do I need separate cover for trade plates?

They are usually covered within the trade policy rather than separately, but confirm it. Their use is also governed by rules of its own that sit alongside the insurance.

How long does it take to arrange?

Usually a day or less once the information is complete. Having the driver details, the turnover figure and the claims history ready before you start is what turns a week of messages into a single conversation with a broker.

Ready when you are

Get the Driving Covered

Tell us the trade and the drivers. Specialist UK brokers can then come back with quotes. Free to use, with no obligation to buy.

  • Third party through to comprehensive road risk
  • Free to use, no obligation
  • FCA authorised and regulated

Free to use · No obligation · UK brokers

About this page

This page explains UK road risk motor trade cover: the section that lets you drive vehicles in your charge, the three levels it comes in, and what it deliberately does not reach. It is general information rather than advice. Policies differ between insurers, so read your own documents and put the questions raised here to your insurer or broker.

How we approached this page

  • Published UK motor trade policy summaries
  • Road risk levels, driver conditions and vehicle value limits
  • Financial Ombudsman material on motor insurance complaints