Road Risk Insurance
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Why Compare Road Risk Insurance With SimplyQuote?
Anyone in the motor trade industry knows how stressful it is to look after vehicles you don’t own. As a business owner, these stresses can often keep you up at night, especially when staff are involved.
Luckily, SimplyQuote’s 100% free, online comparison tool takes the hassle and stress out of finding cheaper road risk insurance. Access suitable quotes from leading UK insurers in just a few clicks.
It could not be more simple!
What Do You Need To Get A Quote?
We’ll need the following information from you to give you a quote:
- Personal details – name, postcode, contact info
- Business details – registration details, VAT info
- Business premises details – address, area/s where work is performed (showroom/workshop)
- Employee details – driver/s age, number of employees
- Policy details – the level of cover you want, claims history
Why Do You Need Road Risk Insurance?
If you’ll be driving other people’s cars for work, you must take out at least a basic level of road risk insurance, by law. This applies even if you are only moving the vehicles a short distance.
Road risk insurance covers you and any named driver in your motor trade policy to drive vehicles that don’t belong to you on public roads for business purposes.
Sufficient cover can give you peace of mind that your business will overcome unexpected financial implications if there is an incident or something goes wrong.
For example, if you find yourself in a road accident whilst behind the wheel of a customer’s car, or if another named driver loses control of a car that is being test-driven and causes damage to someone else’s property, road risk insurance covers this.
Which motor trade businesses need road risk insurance?
- Car dealerships
- Car jockeys
- Car restorers
- Mechanics garages
- Mobile mechanics
- MOT and servicing garages
- Motorcycle dealerships
- Repairs garages
- Recovering vehicle services
- Salvage yards
- Scrap dealerships
- Valet services
Applies to both part-time and full-time businesses.
Looking for the cheap Road Risk Insurance? Get a quote today!
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What Does Road Risk Insurance Cover?
Road risk insurance applies specifically to you if you’re driving other people’s cars for work. This type of cover has three levels of insurance, exactly like your personal car insurance options.
Third-party only (TPO)
- The most basic level of cover.
- Might be the cheapest option of road risk insurance.
- Covers the cost of fixing damages to other people’s vehicles.
- Provides compensation to any third parties who sustain injury (or damage to their property).
- Note: This does not cover vehicle repair/replacement or medical costs for you personally.
Third-party, fire and theft (TPFT)
- Mid-tier level of cover between TPO and comprehensive cover.
- Includes basic TPO.
- Provides compensation if customer vehicles are damaged by fire or stolen.
- Note: This does not cover vehicle repair/replacement or medical costs for you personally
Comprehensive cover
- The most extensive level of cover available in the UK.
- Includes both TPO and TPFT cover.
- Vehicle repair/replacement costs are included.
- May include additional extras like windscreen protection and breakdown cover.
What’s not covered?
- Employers liability
- Product liability
- Public liability insurance
- Normal vehicle wear and tear (e.g. tyres)
- Operating vehicles under the influence of drugs or alcohol.
- Costs or damages incurred due to negligence.
- Goods in transit
- Personal belongings
Which vehicles are covered by motor trade road risk insurance?
Typically, road risk policies provide cover for standard vehicles.
If you will be operating specialist vehicles such as haulage trucks, or lorries in excess of 7.5 tonnes, it will be safer to look for a specialist policy.
What Should Motor Traders Consider When Opting For Road Risk Insurance?
Anyone in the motor trade business should consider these two factors:
- Motor insurance database
- Trade plates
Let’s take a closer look:
Motor insurance database
For your road risk cover to apply, the car that’s driven must be listed on the Motor Insurance Database (MID).
The MID provides a full record of all insured vehicles within the UK and helps the Driver and Vehicle Licensing Agency (DVLA) and the police to enforce motor insurance laws.
You risk invalidating your road risk cover – which can have serious implications – if the vehicle you are operating is involved in a car accident and is not listed on the MID.
Trade plates
When you are in temporary possession of a vehicle, it’s possible to use trade license plates. This saves businesses in the motor trade industry both time and money because it permits them to drive and look after cars without needing to register or tax those vehicles.
What Types Of Road Risk Insurance Are Available In The UK?
There are no types of road risk insurance in the UK as this is a subcategory of normal motor trade insurance.
What Add-Ons Are Available For Road Risk Insurance?
Here is a list of optional extras you can add to your road risk insurance policy:
Business premises insurance
Cover the likes of garages, office buildings, showrooms and workshops from fire, floods, burglary and vandalism.
Contents insurance
Covers items in offices such as computers, laptops, printers and furniture.
Tools and equipment insurance
Covers your tools of the trade, specialist equipment and machinery.
Employers’ liability insurance
This is a legal requirement if you employ staff, including casual and part-time workers.
If not, you can expect a daily £2,500 fine until you have this in place.
Employer liability insurance offers protection in case a staff member becomes ill because of work or is injured at work and decides to file a claim against you.
Product liability insurance
Protect your business if a faulty product is fitted which later causes an accident or serious bodily harm.
Public liability insurance
Offers financial protection if a member of the public sustains an injury that your business is responsible for. It covers all compensation and legal costs.
Named drivers
Stipulate who can drive vehicles during business operating hours.
Personal cover
A normal road risk insurance policy won’t cover personal vehicles. Opt for this policy add-on to ensure you can drive vehicles for both motor trade business purposes and personal use.
Demonstration use
Demonstration use permits potential customers to drive vehicles that you have in stock before they make the final decision to purchase them, such as showrooms and dealerships.
Note: There’s no “one-size-fits-all” insurance for a motor trade business. Road risk cover is a legal necessity for motor traders but depends on your specific business activities.
How Much Does Road Risk Insurance Cost?
As an estimate, basic third-party only starts from around £6.66 per week.
However, the price of road risk insurance in the UK may vary depending on the level of cover you choose, and other factors.
What influences insurance prices?
- Drivers’ age and experience
- Nature of your motor trade business
- Frequency of driving vehicles that you do not own
- UK location (cities generally have higher premiums than rural areas)
How Can You Get Cheaper Road Risk Insurance Rates?
Here are a few ways to reduce your road risk insurance premiums:
- Compare quotes from multiple insurance providers with SimplyQuote to find the best deal.
- Pay premiums annually as opposed to monthly instalments.
- Hire experienced drivers (over 25) to keep premiums down.
- Follow motor trade industry best practices at all times (e.g. obey traffic laws, ensure drivers have valid licenses)
- Secure business premises to deter criminal activity (e.g. CCTV systems, security gates)
- Maintain business properties (e.g. fix broken steps, mop up wet floors) to prevent any injuries.
- Secure vehicles overnight if you need to keep them for an extended time.
- Choose the correct level of cover you need to avoid unnecessary expenses.
- Only add the optional extras relevant to your business operations.
How To Compare Road Risk Insurance With SimplyQuote?
Comparing road risk insurance cover with SimplyQuote is quick and hassle-free:
- Fill in the quick online form: Tell us about yourself, your business and your location.
- Select policy add-ons: Choose any additional cover you want.
- Find quotes: Quickly compare road risk quotes from leading UK insurers.
- Save money: Get the best deal to start saving today.
Frequently Asked Questions
Road risk insurance is a type of motor trade insurance cover that is specifically designed for motor trade businesses that drive cars that don’t belong to them, such as mechanics or valets.
No, road risks cover applies to all modes of transport in the motor trade industry, including motorcycles, trucks, coaches and lorries.
You’ll receive a £300 fine and six penalty points on your driving license if you’re caught without a road risk insurance policy in the UK.