What does road risks insurance cover?

Road risks insurance can cover you and any named drivers when driving vehicles for your business. Depending on the level of cover, it can help if you're involved in an accident or a vehicle is stolen. It can cover your own vehicles and customers' vehicles in your care, subject to the policy terms.

Can I drive any vehicle under a road risks policy?

Policies usually let the policyholder and named drivers drive vehicles registered to or owned by the business, and vehicles in the business's care for trade purposes. Employees may only be covered for certain vehicles unless the policy says otherwise. Vehicles belonging to friends and family are not usually covered unless they're in your possession for a genuine business reason.

Are my personal vehicles insured under this policy?

It can be possible. The broker will usually need to check with the insurer that your vehicle meets their criteria and has the right level of cover.

Do I need a road risks policy?

If your business repairs, maintains or sells vehicles and you drive them on the road, you need cover in place. Customers leave their vehicles in your care, so if anything happens to them you could be held responsible.

Motor trade

Road risks insurance

Road risks insurance for motor traders explained: who needs it, what it covers, road risks versus combined cover and the three levels of cover.

Road risks insurance is designed for motor traders, part time or full time, who drive vehicles as part of their business. Even if you only buy or sell the occasional car as a trader, you'll need cover in place to meet the legal requirement for driving on public roads.

Road risks cover suits motor traders who work in repairs, maintenance or sales. It covers you when you're driving or moving vehicles as part of your day-to-day work. You can also add cover for your premises and public liability, whether you work from home or from a business premises.

Kompare helps traders find specialist motor trade cover. You fill in a short form and a specialist FCA-authorised broker from our panel contacts you to talk through your needs and quotes. You can read more on our motor trade insurance page or see how we work.

What are the different policy types?

When you take out road risks insurance, you'll usually choose between two levels of cover.

Road risks

This often suits traders based at home rather than at a fixed premises. It covers the vehicles in your possession when they're on the road, for example moving a vehicle from your garage to a driveway, collecting or returning a customer's vehicle, or road testing a vehicle after a repair.

Road risks and premises cover

A combined policy is designed for traders who run their business from a premises rather than from home. It's also worth considering if you employ staff, keep stock or store customers' vehicles overnight.

What levels of cover are there?

Road risks cover works in a similar way to car insurance. Because you'll be driving vehicles regularly, you'll choose one of three levels.

Fully comprehensive

This is the highest level of cover. It includes everything in third party, fire and theft, and also covers damage to the vehicle you're driving, even if an accident was your fault. Policies vary, so check what is included.

Third party, fire and theft

This covers you if you're responsible for injury to other people, including passengers, or damage to their property. It also covers the vehicle if it's stolen or damaged by fire. It won't pay for repairs to the vehicle you're driving if you cause an accident.

Third party only

This is the most basic level of cover and the minimum required by law. It pays for injury to others and damage you cause to other vehicles and property, but there is no cover for the vehicle you're driving.

Not sure which policy you need?

If you're unsure which type of cover suits your business, get in touch and we can help with any questions. The broker who contacts you can also explain the options before you decide.

Many roles in the motor trade overlap, so mention everything you do when you fill in the form. Our motor trade insurance page covers the full range of trades.