FCA authorised · FRN 724952 0117 325 0027Quote & buy →
Motor trade insurance
Road risks only is a motor trade policy that insures you to drive vehicles connected with your trade on the road, without covering premises, tools or stock at a site. It matters because it is the usual starting point for home-based and mobile traders, and its limits decide what happens after a crash or theft.
Part of: Motor trade insurance
In short
A road risks only policy insures named drivers, or a defined group of drivers, to use vehicles in connection with the motor trade on roads and in public places. It usually covers your own stock and customers' vehicles while being driven for trade purposes. Cover comes in three levels: third party only, third party, fire and theft, and comprehensive. It does not usually cover premises, tools, stock at rest or faulty work. Everything depends on the policy wording and the insurer's acceptance.
Road risks only (often shortened to RRO) is the driving section of a motor trade policy on its own. It insures the people named or described on the policy to drive vehicles used in the course of the motor trade. Depending on the wording, that commonly includes:
The legal minimum is set by the Road Traffic Act 1988. Section 143 requires insurance for using a motor vehicle on a road or other public place. Section 145 sets out what that insurance must cover, including liability for death, bodily injury and damage to property, and allows a policy to limit property damage to £1,200,000 for any one accident. Section 145(4) also says a policy need not cover damage to the vehicle itself or to property in the insured's custody or control. That last point matters for customers' cars, covered below. For background, see compulsory motor insurance and the road risks definition.
Road risks policies come in the same three levels as private car insurance. The level decides what happens to the vehicle you are driving.
| Level | Third party injury and property | Fire and theft of the vehicle in use | Accidental damage to the vehicle in use |
|---|---|---|---|
| Third party only | Yes | No | No |
| Third party, fire and theft | Yes | Usually, subject to conditions | No |
| Comprehensive | Yes | Usually, subject to conditions | Usually, subject to the excess and any vehicle value limit |
Some insurers offer split cover, for example comprehensive on vehicles up to a set value and third party only above it, or a different level for customers' vehicles. Read the schedule as well as the wording. Theft cover commonly carries conditions about keys, locking and where vehicles are left.
Road risks only is a driving policy. It does not usually cover:
If those gaps matter to you, look at a combined motor trade policy.
Most road risks policies define the vehicles they cover by their connection to the trade, for example vehicles in your custody or control for the purposes of the motor trade, rather than by registration number. That flexibility is the point of the cover, but it has edges.
Under section 148 of the Road Traffic Act 1988, certain policy restrictions, such as the driver's age or the time and place of use, have no effect against third-party claims, but the insurer can recover what it pays from the insured person whose liability it met. A breach can still leave the business out of pocket.
Customers' vehicles are where road risks only most often surprises people. On a third party only policy, if you damage a customer's car while road testing it, the policy covers the other car you hit but not the customer's car. You are still answerable to the customer for their vehicle while it is in your care.
Comprehensive road risks commonly covers customers' vehicles while being driven for trade purposes, but some policies limit that cover or apply a different excess. Damage to a customer's car while parked at your premises or home is a separate question, usually handled by customers' vehicles cover on a combined policy. Our guide to customer vehicles in your care explains the options.
A mobile mechanic replaces a customer's brake pads and takes the car round the block to check them. He misjudges a junction and hits a wall. His third party only road risks policy deals with the wall owner's claim, but not the repair to the customer's car, which he has to fund himself. Comprehensive road risks, subject to its terms, would usually have responded.
Road risks only usually suits traders without a unit: home-based dealers, mobile mechanics, delivery drivers and valeters. It starts to fall short when you take a lease on premises, hold stock at a site, employ staff or carry out work where a fault could injure someone. At that point the gaps listed above become real exposures, and a combined policy is usually worth comparing. Our guide to trading without premises covers the halfway house of storage at home or a shared yard.
Apex arranges road risks only policies, including for part-time and home-based traders, and combined policies for dealers and garages. A broker reads your enquiry and comes back with options, and there is no fee for a quote. Cover is subject to the insurer's acceptance and the policy terms. To quote, we need to know what the business does, your address and any premises, who drives (ages, licences and points), turnover, vehicle values (your own stock and customers' vehicles) and claims history. Start on our motor trade insurance page.
It means the policy covers driving only. It insures named or described drivers to use vehicles connected with the motor trade on roads and in public places, at third party only, third party fire and theft, or comprehensive level. It does not usually cover premises, tools, stock at rest or liability for faulty work.
Usually it covers your liability to third parties while you drive a customer's car for trade purposes. Damage to the customer's car itself is normally only covered on comprehensive cover, and some policies limit it. Customers' cars parked at your premises or home need separate cover, typically on a combined policy.
Sometimes. Some policies allow limited social, domestic and pleasure use, or named personal vehicles, while others exclude vehicles you own that are not for sale. Check the schedule and wording before relying on it, and tell the insurer how you intend to use the policy.
Usually not. Road risks only does not cover buildings, contents, tools, vehicles at rest on the premises or public liability for visitors. If you lease a unit or employ staff, a combined motor trade policy, plus compulsory employers' liability, is usually the better comparison.
Many motor trade policies cover use under a DVLA trade licence, but check the wording. DVLA asks for a copy of a motor trade insurance certificate when you apply for trade plates, and the vehicle must be insured, roadworthy and have a valid MOT or an exemption.
Tell us what your business does, who drives, your premises and vehicle values. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a motor trade enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
