Motor trade road risk insurance

Road risk insurance is the most basic cover that your motor trade business can legally have to operate and enable you to drive vehicles, whether from an auction to your garage or to test drive after repairs have been carried out. Regardless of the size of your business, if you’re a sole trader or a large repair shop, by having road risk insurance you will cover customer vehicles left in your care and any cars that are ‘in the trade’ – such as sold at auction and being prepared for resale – or simply those being delivered to clients. At Prime Cover, we believe in clear, concise and honest communication with no jargon or technical language and we can ensure that you have the protection you need.

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What is Motor Trade Road Risk Insurance

Road risk insurance for the motor trade is the minimum level of insurance required for a business to operate. It covers damage caused by your vehicle to other people’s property whilst on public roads.

It comes in a few levels, offering different types of coverage at different price points depending on your risk level and budget.

Types of Road Risk Insurance With Prime Cover

There are three primary types of road risk insurance which cover different levels of risk: third party only (TPO), Third Party, Fire and Theft (TPFT) and Comprehensive.

  • Third Party Only – this is the minimum requirement legally. It covers any liability to other people’s property resulting from an accident. It doesn’t cover the value of your vehicle, and it doesn’t cover theft or fire damage.  
  • Third Party, Fire And Theft (TPFT) – this is similar to TPO policies but it will also cover the vehicles if they’re stolen or damaged by fire. It still doesn’t cover damage to your own vehicle, if you’re at fault in an accident, or where there is no third party to claim from. This policy type will suit those whose vehicles are kept in an area with a higher risk of theft or fire, but where the vehicles aren’t valuable enough to warrant comprehensive coverage. In short, TPFT is one step above TPO and covers any damage to other people’s property as well as any fire damage and theft-related claims.  
  • Comprehensive - this is the broadest level of coverage. It will cover all the features of TPFT as well as your vehicle, even if you’re at fault. Whilst it offers the highest level of cover, it is usually the most expensive. Comprehensive insurance is best for businesses dealing with more expensive vehicles.

The staff at Prime Cover have been supplying road risk insurance to businesses and individuals in the motor trade for years and we have access to the best and most trusted deals on the market. We give advice without using technical language so that everything is clear and easy to understand.

What Does a Road Risk Policy Cover?

What a motor trade road risk policy covers will depend on which type of coverage you have, as TPO, TPFT and Comprehensive policies all offer different levels of coverage. Generally, it will cover customer vehicles, vehicles in trade and some business vehicles, although some things will not be covered by your motor trade road risk insurance, and these include family fleets.

Certain vehicle types are generally excluded; however, we are often able to accommodate these – high-end performance cars, motorcycles, vehicles over 3.5 tonnes GVW and vehicles used in connection with another business are examples of this. It’s always worth discussing your unique needs with our friendly and knowledgeable team. Depending on your business there are many policy extensions you can choose:

  • Accompanied demonstration cover (test drive cover)
  • Windscreen damage
  • Vehicles in transit
  • Trailer cover
  • No claims bonus protection
  • Stock of vehicles cover (where vehicles are stored at trade premises overnight)

And more! It is also worth considering that if you have a larger motor trade outfit you may wish to combine your road risk insurance with other extensions or options to ensure that all your trading activities are covered, and a combined motor trade insurance policy is often the best way to make sure this is the case.

Benefits of Road Risk Insurance

There are many benefits of having motor trade road risk cover, not the least of which is that it is a legal requirement to have a minimum of at least TPO cover. This will ensure that your business is compliant and won’t have to face prosecution. However, having a good road risk insurance policy is crucial for businesses that drive or handle customers’ cars or a variety of vehicles that aren’t registered in their name and these benefits include:

Financial protection

Accidents can be costly and it will protect against any significant out-of-pocket expenses

Business continuity

If your business can’t test drive or move vehicles due to a lack of insurance it will hinder your operations, so a road risk policy will enable daily operations to continue smoothly


Road risk insurance policies can be tailored to your precise needs

Protection against theft and damage

The higher levels of road risk insurance, TPFT and Comprehensive offer greater protection, which can include vandalism and other crimes, which is especially important for businesses with valuable stock vehicles

Peace of mind

You can continue to operate with the confidence that any mishaps will not cause loss of earnings or employment for your staff

Enhanced reputation

Having a good level of insurance demonstrates responsibility and professionalism which gives your customers peace of mind

Optional add-ons

Being able to customise your policy to your unique requirements – such as covering personal vehicles, tools and equipment, stock and supplies and even business interruption cover

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Motor trade road risk insurance prices

Road risk insurance for the motor trade starts at as little as £8.73 per week, but your prices will vary based on a number of factors. Everything from your age, location, level of cover chosen, type of vehicle, any previous claims or convictions, and the amount of voluntary excess will all affect the cost of your insurance policy.  

Getting the Best Price on Your Road Risk Insurance

Creating a quote for your motor trade road risk insurance is a complicated business of combining all the different risk factors to come up with a final figure. The figure is calculated from certain key bits of information, such as the types of driver, their ages and driving experience as well as any previous motoring claims or convictions. Elements that need to be factored in are the location where your premises are, or where vehicles are stored overnight and if you have any security onsite or not.

Other things that will impact the cost of your road risk insurance policy premiums are whether you choose Third Party, Third Party, Fire and Theft or Comprehensive cover, and the level of cover you require, as well as the amount of excess that you want to pay on the policy in the event of having to make a claim. Prime Cover always aims to ensure that you get the best price for the road risk insurance package you need for your business, sourcing the most competitive deals for your requirements.

Can I add to my road risk insurance policy?  

Every business has different needs, and we can tailor our policy offerings to suit you. With a suite of add-ons including:  

  • Accompanied demonstration cover (test drive cover)  
  • Vehicles whilst in transit  
  • Trailer cover  
  • No claims bonus (NCB) protection  
  • Cover for stock vehicles whilst in storage  
  • Windscreen protection 
  • Excess protection 
  • Motor trader's breakdown cover 
  • Motor trader’s key protection 
  • Motor legal protection 

Businesses That Need Road Risk Insurance

Any motor trader that needs to drive as part of their business will be legally obligated to have road risk insurance, and most businesses will need add-ons for their unique requirements.

  • Mechanics/Mobile Mechanics

    Whether you are a mechanic who fixes cars that have broken down on the side of the road or at your garage, you will need to protect yourself, your van and your equipment.

  • Valeters

    These days, many people find it much easier to have someone clean and valet their vehicles, and you will need to make sure your equipment and business are fully protected.

  • Auto Electricians

    Working on the complicated electronics of vehicles is a specialised field and your vehicles and equipment need protection to ensure you can keep working.

  • New Businesses

    Your new business is vulnerable and unexpected, large costs could have devastating effects, so having the right insurance to protect it is essential.

Can I reduce the cost of my road risk insurance?

There are a few ways that you can reduce the cost of your road risk insurance. Firstly, by opting for a lower level of cover, your policy will be cheaper, but you’ll be more susceptible to higher costs should something go wrong.  

If you establish your business in an area with lower crime rates, your insurance costs may be lower too, and insurers will often factor in the use of recognised security systems and devices.  

By taking stock of your potential risk areas, you can make sure that you insure the right aspects of your business, but it’s always worth considering the potential harm that could be caused to your business should you be impacted by something you’re not insured for.  

The best course of action is to discuss your needs with your insurer, who can offer the best advice on building a policy that’s right for you.  

Prime Cover: The smart choice for motor trade road risk insurance

At Prime Cover, we work almost exclusively in the motor trade. We know the sector inside out and understand the potential risk areas.  

We offer our customers outstanding levels of service and can work with you to build a policy that’s right for your business at a competitive price. Better yet, our 24/7 claims and support line is always there when you need it.  

Click here to request a free quote in just five minutes.  

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A road risk insurance policy is primarily designed for motor traders and covers vehicles they drive, or handle. This policy protects against risks when these individuals or businesses are driving customer cars or vehicles they're planning to sell. The level of coverage varies, with basic policies covering Third Party Only (TPO) risks, while more comprehensive ones might also cover fire, theft or even damage to the vehicles in question.

Those who need a road risk policy are anyone driving on the public road, but in the motor trade industry will, amongst others, include:

  • Motor Traders: This includes both full-time and part-time traders, whether they operate from a business premises or home.
  • Mechanics: Mechanics and garages often need this type of insurance to cover the vehicles they're repairing, whether in a fixed spot or a mobile unit on the road.
  • Vehicle Recovery Agents: Those who operate tow trucks or recovery vehicles.
  • Valets and Car Cleaners: Professionals who drive or move client cars.
  • Delivery Vehicles: Those who drive vehicles to deliver goods or services.
  • Car Sales: To allow those considering a purchase to test drive the vehicle of their choice before making a decision.

To get the best quote for your needs, ideally, consult specialist brokers to be able to compare the various quotes and coverage that each will offer to make sure you select the best option for your requirements. Make sure that your coverage is tailored to your specific needs and that you’re not paying for cover that you don’t need. Consider the amount you could pay as a voluntary excess as it could lower your premium, although make sure it’s an amount you could afford if you had to pay it suddenly. Build a No Claims Bonus, as you can often be offered discounts if you have a history of no claims. Prime Cover prides itself on finding the most competitive quotes for all of its customers, so get in touch today to find out how much you could save.

In the UK, driving a vehicle on public roads without at least Third Party Only insurance is illegal. Therefore, if you're a motor trader, or in a profession where you're driving, or handling, vehicles not registered in your name on public roads, then a road risk policy is mandatory to meet the legal requirement for insurance. If you're only dealing with vehicles off-road – for example, in a private garage or on private land, then the legal requirement might not apply, but insurance is still highly recommended for financial protection.

You’ll need motor trade road risk insurance if you operate any of the following businesses:  

  • Vehicle sales  
  • Mechanics and mobile mechanics 
  • MOT preparation and testing stations 
  • Vehicle valeters including mobile valeters 
  • Auto electricians and auto locksmiths 
  • Vehicle body repairers, panel beaters and paint sprayers 
  • Tyre and/or exhaust fitters 
  • Vehicle collection and delivery operatives  
  • Vehicle recovery agents 
  • Vehicle assessors 
  • Vehicle diagnostic engineers and ECU remappers 

All motor trade businesses will need road risk insurance as a minimum, so contact us to discuss your business’s needs.