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Road risks is motor trade insurance for driving vehicles on the road as part of a motor trade business, including stock and customers' cars. It is how most traders meet the legal duty to be insured.
Part of: Motor trade insurance
In short
Road risks is the motor trade cover for driving vehicles on the road in connection with the business: own stock, customers' vehicles and demonstrators. Section 143 of the Road Traffic Act 1988 requires insurance for that use, and section 145 sets the minimum, including at least £1,200,000 of property damage cover per accident. It comes in third party only, third party fire and theft, or comprehensive levels. It does not usually cover parked stock, premises, tools or workmanship, which need other sections.
Road risks is the part of a motor trade policy that covers driving vehicles on the road in connection with the business: your own stock, customers' vehicles, part exchanges and demonstrators. A road risks only policy provides that cover on its own, without premises, stock-at-rest or liability sections. It suits traders without a unit, such as home-based dealers and mobile mechanics. See road risks only motor trade insurance explained.
Section 143 of the Road Traffic Act 1988 makes it an offence to use a motor vehicle on a road or other public place, or to cause or permit someone else to, without insurance meeting the Act's requirements. Section 145 sets those requirements: cover for death, bodily injury and damage to property arising from use of the vehicle, with property damage cover of at least £1,200,000 for any one accident.
Section 145(4) lists what compulsory cover need not include, such as damage to the vehicle being driven and damage to property in the insured's custody or control. That is why the level of road risks cover matters to traders driving other people's vehicles. See compulsory motor insurance.
| Level | What it typically adds |
|---|---|
| Third party only | Liability to others for injury and property damage |
| Third party, fire and theft | Fire and theft of the vehicle being driven |
| Comprehensive | Accidental damage to the vehicle being driven, subject to limits and excesses |
Motor trade policies often set a maximum vehicle value and may treat own stock and customer vehicles differently. Exact cover depends on the insurer's acceptance and the policy terms.
Road risks is about driving. It does not usually cover vehicles parked at your home or premises (stock at rest), damage to customers' vehicles while you work on them, your tools, your premises or liability for workmanship. Those sit in other sections, often under a combined motor trade policy. For customers' cars, see customer vehicles cover.
Apex arranges road risks motor trade insurance, including for part-time and home-based traders, subject to the insurer's acceptance and the policy terms; see motor trade insurance and part-time motor trade insurance.
Road risks is cover for driving vehicles on the road in connection with a motor trade business, including your stock and customers' vehicles. A road risks only policy has no premises or stock-at-rest cover, which makes it common for home-based traders.
Third-party road risks meets the Road Traffic Act 1988 requirement for the vehicles and uses it covers. The Act does not require cover for damage to the vehicle being driven, so higher levels of cover are needed to protect the vehicles themselves.
Usually not. Road risks covers vehicles while being driven. Theft or damage while parked at home or at premises is normally stock at rest or customer vehicles cover, which sits in other sections and is subject to its own conditions.
Trade plates may only be used on insured vehicles, so the policy must cover the vehicles and the use. Check that your road risks policy covers trade plate use before relying on it, as cover is subject to the policy terms.
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.
