What is Road Risk Insurance?
Road Risk Insurance for Motor Traders is a form of cover designed to cover those who trade from home. Whether you repair cars or buy to sell, if trading from home, this cover is suitable for you.
We find it is typically a favourable policy for part time traders who buy and sell at weekends or repairs vehicles in their free time away from their full time employment.
What does Road Risk Only cover me for?
A Road Risk Insurance Policy can and will cover everything a Combined Policy will cover BUT without premises protection. It will insure your vehicles and your clients vehicles on public roads. You will even have access to the MID database to add cover for vehicles you buy and sell.
Road Risk is classed as a lower form of motor trade insurance but is completely tailor-able to your needs.
What elements are contained within the policy?
Similar to private car, your policy can be broken down into 3 main levels of protection.
Third Party Only
This cover protects the third parties only but NOT your own vehicle. For example, should you be on the road and crash into something belonging to another person, then they will be covered but not your vehicle. This is road risk in its most basic form and only recommended for small time traders.
Third Party, Fire and Theft
This covers the same as Third Party Only BUT covers your vehicles against Fire and Theft.
This policy will cover you against all Third Party related risks as well as your own vehicle against accidental damage. Policies can also be tailored to include vandalism and cover for windscreens.
When speaking with our motor trade brokers, it is essential that you explain in detail the nature of your business and risks you need covering.
Primary features of a Road Risk Policy
Your policy can be tailored to your needs and can include the below as either essential or optional cover elements.
This will allow your customers the chance to drive the vehicle accompanied by you the policyholder. Showcasing a vehicle to a potential buyer is important and is an essential cover for any buy to sell traders.
Comprehensive or Third Party
You will be able to choose the level of protection you want depending on the nature of risk you under take within your business.
You will be able to choose a level of indemnity to suit your needs. Our brokers will be more than happy to talk you through this and explain what a suitable indemnity level for you would be.
Reducing the cost of your policy
There are various ways in which you can reduce the cost of your road risk insurance.
Check your indemnity level
By keeping your level of indemnity down, you can help reduce the policy cost. Always make sure though that your level of indemnity is appropriate to your risk level.
No Claims Bonus
Work hard of building up your Motor Trade No Claims Bonus. By maintaining a good NCB, you demonstrate to a broker that you are a lower risk trader and as such your premium can drop. Some brokers will also allow you to mirror or transfer your Private NCB.