What Does Road Risk Only Insurance Cover?
Road risk insurance covers you to drive vehicles you do not own, in order to carry out your business. You might be moving a vehicle you have bought from an auction house to your home, for example. In the event of an incident or accident, you will be covered. There are three levels of cover available:
Third party only: covers damage to other people and their property in the event of an accident, e.g. if you reversed into another car in a car park, the damage to the other car would be covered, but not damage to the car you are driving. This is the minimal level of cover you would require.
Third party, fire and theft: offers the same cover as third party insurance, with the additional benefit of covering the vehicle in your possession in the event of fire damage or theft.
Comprehensive: this offers all of the above benefits, but most importantly for a motor trader, it also covers the vehicle in your possession in the event of any damage sustained in an accident that is your fault, and you can also claim in the event of a personal injury.
You may wish to consider taking out this highest level of cover to make sure that the vehicles you are buying, selling and/or repairing are covered, protecting your assets. Bear in mind, though, that you are only covered for the trade value of the vehicle insured.Get a Quote
Who Should Buy Road Risks Only Insurance Cover?
Road risks insurance is designed for part-time or full-time motor traders who buy, sell or repair vehicles. All motor traders will need road risks cover to conduct their business, otherwise you will not be insured to drive vehicles in connection with your work. This type of insurance is best suited to motor traders who work from home, which is not normally classified as business premises.
This type of cover is not suitable for those who require cover for multiple vehicles for personal use. You will need proof that you work in the motor trade industry – receipts for parts if you work in repairs, or for vehicle purchases and sales if you trade vehicles, are important in demonstrating this – in order to get road risks insurance.
It is important to bear in mind that if you operate out of business premises rather than trading at home, or if you employ other staff to work with you, you may wish to take out the greater level of insurance cover that traders combined insurance can offer you. You can tailor traders combined insurance cover to suit your needs, including cover for your premises, employees or members of the public who visit your business.
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