What is road risk insurance?

What is road risk insurance?
December 31 07:02 2018 Print This Article

Road risk insurance is a type of specialist insurance aimed at individuals or businesses who need to drive vehicles in order to carry out their business. More specifically, it is insurance for those who need to move vehicles in order to trade (buy and sell) or to repair them.

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If for example, you buy a vehicle at an auction and you want to bring it home briefly before selling it on, risk insurance would cover you on the trip home in the event of any incident or accident.

Motor trade insurance like this isn’t suitable for people who drive multiple vehicles for personal use – rather it is aimed at people who trade vehicles (usually on a part-time basis).

There are three levels of cover available:

Third party only

This is the minimum level of cover and covers the cost of any damage to other people/their property that may occur as a result of an accident that is your fault. For example, if you reversed into another car in the auction house car park, the damage to that car would be covered, but not the damage to the car you were driving. Third party road risks insurance is the legal minimum requirement in the UK.

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Third party, fire and theft

This offers the same level of cover as third party insurance, but additionally, it also covers your vehicle should it be damaged by fire or stolen.

Comprehensive

This covers any damage to the vehicle in your possession or a third party vehicle sustained in an accident (no matter who is at fault). Also, you can claim for personal injury. This is probably the most sensible level of cover for a motor trader.

How much does road risk insurance cost?

Road risk insurance cost varies depending on a number of criteria including driving experience, location and claims history. Cover can be as low as £6.66 a week for a third-party only insurance cover. Comprehensive insurance will cost more but may be the best option for your business. Many leading companies such as www.quotemetoday.co.uk/motor-trade-insurance/ have a quote function available on their website to give you an indication of how much road risk insurance will cost you.

If you are running a more complex or larger-scale business, a combined motor traders insurance policy may be more suitable.

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Clare Louise
Clare Louise

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