Road risk insurance for every motor trade business
Road risk insurance from a panel of trusted UK insurers
Insure your motor trade business for road risk with zero hassle
Road risk insurance is the foundation of any motor trade policy. If you drive vehicles that aren’t yours — or your own vehicles — as part of your business, road risk cover is a legal requirement.
Whether you’re a dealer taking a car on a test drive, a mechanic moving a customer’s vehicle, or a valeter repositioning cars on site, you cannot legally operate without it.
At insurd, we’re an FCA-regulated specialist insurance broker with over 50 years of experience arranging motor trade insurance across the UK. We work with a panel of leading UK insurers to find the right road risk policy for your trade and your budget.
24/7 claims service
We’re here for you round the clock when you need us most.
Fairer prices for all
As a specialist insurance broker, we search our panel of leading UK insurers to find the right road risk policy for your business.
World-class support
You’ll get your own UK-based human to look after you for the duration of your policy.
We use a combination of technology and a wealth of experience to give you unrivalled cover and more affordable motor trade insurance prices.
What is road risk insurance?
Road risk motor trade insurance allows you to legally drive vehicles on public roads as part of your business — whether those vehicles belong to you or your customers. It is a legal requirement for any motor trade activity that involves moving vehicles on public roads, and a standard personal car insurance policy does not cover any business-related vehicle use.
Without road risk cover, driving a customer’s car to test it after a repair, moving stock between locations, or conducting a test drive for a potential buyer would all be uninsured activities — leaving you personally liable for any accident, damage, or injury that occurs.
There are three levels of road risk cover:
- Third-party only (TPO): Covers damage to other people’s property or injury to others. It’s the minimum legal requirement.
- Third-party, fire and theft (TPFT): Includes TPO cover and adds protection against fire damage and theft of vehicles.
- Comprehensive: Offers the highest level of protection, covering third-party risks, fire, theft, and damage to the trader’s vehicles.
The primary purpose of this insurance is to offer protection against the unique risks associated with handling multiple vehicles and dealing with the public. Here are some key reasons why cover insurance is vital:
- Legal compliance: It ensures that your business adheres to legal requirements, avoiding hefty fines and penalties.
- Financial protection: Safeguards your business against the financial fallout from accidents, theft, and other unforeseen events.
- Peace of mind: Allows you to focus on running your business without constantly worrying about potential risks.
Who needs road risk motor trade insurance?
Road risk insurance is essential for anyone operating in the motor trade industry. Who needs it includes, but is not limited to:
Part-time traders
Part-time traders insurance to protect you when buying, selling or repairing vehicles in the motor trade, whether that’s working from home or as additional work.
Service and repair garages
Service and repair garage insurance for your garage, employees and customer vehicles in your custody. Protection for vehicles having MOTs, being repaired, serviced, or stored.
Recovery operators
Recovery vehicle insurance for recovery operators. Including vehicle and business premises protection. Cover for towing and recovery operations.
Mobile mechanics
Mobile mechanic insurance for working on, testing and driving other people’s cars at various locations.
Valeters and detailers
Car valeting insurance for protection when cleaning and detailing customers’ vehicles. Cover for the vehicles in your care for cleaning and detailing.
Tyre fitters
Tyre fitter insurance for protection when working on and moving other people’s vehicles. For mobile fitters or motor traders with premises.
How much does road risk insurance cost?
Typically, road risk insurance premiums can vary, influenced by the cover level and specific details of your business.
Key factors affecting how much motor trade insurance costs:
Type of cover
Third party only, TPFT, and comprehensive are the three levels. Comprehensive is recommended — damage to customers’ vehicles or stock vehicles on the road could be a high uninsured cost without it.
Nature of business
The type of motor trade activity you carry out is the primary pricing factor. A part-time dealer driving vehicles occasionally carries very different risk to a full-time garage moving multiple customer vehicles daily.
Location and security
Where you operate and the security measures in place affect your premium. Urban areas carry higher risk, and secure overnight storage for stock vehicles reduces your exposure.
Vehicles covered
The types of vehicles you drive under the policy directly affect your premium. High-value, classic, modified, or specialist vehicles carry higher road risk premiums than standard passenger cars.
Driver details
The age, experience, and driving records of all named drivers are critical. Younger drivers and those with claims or convictions will increase your premium significantly.
Policy customisation
Road risk cover can be combined with additional protection to create a combined policy. Adding these increases cost but provides comprehensive business coverage beyond the road.
How to reduce your road risk insurance premium
Beyond the factors above, several practical steps can meaningfully reduce your road risk motor trade insurance costs.
- Build and protect your No Claims Bonus — A clean claims history is your most effective long-term discount. Road risk policies accumulate No Claims Bonus in the same way as personal car insurance — protecting it once you’ve built up several years is worth considering.
- Restrict cover to named drivers — Any driver road risk policies carry a significantly higher premium than named driver policies. If your operations allow it, restricting cover to specific named drivers with clean records reduces your risk profile considerably.
- Set a minimum driver age — Younger drivers carry statistically higher risk. Setting a minimum age requirement of 25 or above for anyone driving vehicles under your road risk policy can materially reduce your premium.
- Declare only the vehicle types you actually deal in — Road risk policies can be rated on the types and values of vehicles you drive. If your policy includes permissions for high-value or specialist vehicles you no longer regularly deal in, removing those permissions at renewal reduces your premium.
- Store stock vehicles securely overnight — Where vehicles are kept overnight affects your premium even under a road risk policy. Secure off-road storage, a locked compound, or a garage reduces theft and vandalism risk compared to street parking.
- Pay annually — Monthly payments are arranged through a finance agreement and include interest charges. Paying your full annual premium upfront avoids that additional cost.
For more ways to reduce your motor trade insurance costs, see our motor trade insurance cost guide.
Road risk insurance frequently asked questions
What is road risk insurance and do I need it?
Road risk insurance is the foundational element of any motor trade policy. It allows you to legally drive vehicles on public roads as part of your business — whether that's test driving, delivering, collecting, or moving vehicles for repair. If you drive any vehicle that isn't yours as part of your trade, road risk cover is a legal requirement. A standard personal car policy will not cover you.
What's the difference between road risks and combined motor trade insurance?
Road risks insurance covers you to drive vehicles on public roads as part of your motor trade activities — whether they're your own vehicles or customers'. Combined motor trade insurance goes further, adding protection for your premises, tools, equipment, stock, public liability, and employers' liability. If you work from premises or have employees, a combined policy is usually the better choice.
Can I get road risk insurance if I only trade part-time?
Yes — we arrange road risk insurance for part-time traders as well as full-time businesses. You'll still need to demonstrate that you're running a genuine motor trade operation, even if it's on a small scale. Visit our part-time motor trade insurance page for more details.
How do I prove I'm a legitimate motor trader?
Insurers require evidence that you run a genuine motor trade business. This can include invoices or receipts from vehicles bought or sold, online or print advertisements, tax records, or business bank account details. The more evidence you have, the smoother the process. Our team can guide you through what's needed when you get in touch.
Do I need road risk insurance if I only buy and sell vehicles and don't carry out repairs?
Yes — if you need to test drive, deliver, or move vehicles as part of buying and selling, road risk insurance is a legal requirement. Even a short test drive on a public road without the right cover is illegal. A road risk only policy is often the most cost-effective option for traders who don't carry out mechanical work.
Can I drive my own car on a road risk policy?
This depends on your insurer and the specific policy. Some motor trade policies will extend to cover your own personal vehicle, but there are usually restrictions — particularly for high-value, high-performance, or luxury vehicles. Let us know when getting your quote and we'll check what's possible.
Who actually underwrites my policy?
We're a broker, which means we arrange cover on your behalf with a handpicked panel of trusted insurers. You'll see exactly who's underwriting your policy before you commit to buying.
Why can I trust insurd?
We've been arranging insurance for over 50 years — now trading as insurd — and we're authorised and regulated by the Financial Conduct Authority (Firm Register Number: 308508), and over a thousand real customers have shared their experiences with us on Trustpilot.
You can verify our status directly on the FCA register.
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