What is Road Risk Insurance?
Road risk insurance is a specialist type of motor trade insurance cover that allows you to legally drive and move vehicles you don’t own as part of your business. Standard car insurance won’t protect you if you’re behind the wheel of a customer’s vehicle, stock you’re selling, or cars in for repair. That’s where road risk insurance comes in.
Whether you’re a full-time motor trader, part-time dealer, mobile mechanic, or valeter, this cover is designed for anyone who needs to drive vehicles for work—even if you operate from home or on the go. You can choose the level of cover that fits your business, from third-party only right up to fully comprehensive.
With road risk insurance, you can work with confidence, knowing you’re protected every time you get behind the wheel for business.
What the experts say…
"Road risk insurance is essential for anyone driving vehicles they don’t own for work. Standard car insurance won’t protect you, leaving you exposed to legal and financial risks. With proper road risk cover, you can operate your motor trade business legally and confidently, knowing you and your customers are protected."
– Ian Beevis, Founder of Clean Green Compare
What does Road Risk Insurance Cover?
A standard road risk insurance policy covers the essentials needed for legal, day-to-day driving in the motor trade. Core features include:
- Third-party only (TPO) – The minimum legal requirement, covering injury or damage you cause to other people and their property while driving vehicles for business purposes.
- Third-party, fire and theft (TPFT) – Adds protection for vehicles in your care if they’re stolen or damaged by fire, in addition to third-party liability.
- Comprehensive cover – The highest level, covering accidental damage to vehicles you drive (even if you’re at fault), plus fire, theft, and third-party risks.
- Customer vehicle cover – Protects vehicles in your custody, care, or control—whether you’re test-driving, repairing, or moving them for your business.
Road Risk Insurance Add-ons
You can tailor your road risk insurance policy by adding optional extras, depending on the needs of your motor trade business. Common add-ons include:
Allows customers to test-drive vehicles, either accompanied or unaccompanied, if included in your policy.
Extends cover to driving vehicles throughout the EU for business purposes.
Pays out if you suffer a serious injury while driving for work.
Repairs or replaces glass on vehicles you’re responsible for.
Provides a temporary replacement if your own business vehicle is off the road after a claim.
Covers legal costs if you face a claim or dispute related to your business activities.
Covers injury or property damage claims made by customers or the public (especially if you want protection beyond driving risks).
Legally required if you have staff, covers injuries to employees.
Recovery and roadside assistance for your work vehicles.
Insures the tools and diagnostic equipment you use as part of your trade.
Road Risk Insurance Common Exclusions
Like all insurance, road risk policies have some important exclusions so always check your policy documents for a complete list of exclusions and to make sure you have the right cover for your business.
Here are the main things not covered:
- Personal use – Your policy only covers vehicles driven for business purposes. Private journeys and commuting are not included.
- Unlisted drivers – Only drivers named on your policy are insured. Friends, family, or employees not listed are excluded.
- Excluded vehicles – Certain vehicle types, such as high-value, high-performance, or heavily modified cars, may not be covered. Always check your policy details.
- Driving under the influence – There is no cover for any incident where you or a named driver are found to be under the influence of alcohol or drugs.
- Unattended or unsecured vehicles – Theft claims may be refused if vehicles are left unlocked, unattended, or with keys inside.
- Vehicles not in your care – Only vehicles you have legal responsibility for as part of your business are covered by your policy.
Who Needs Road Risk Insurance?
Road risk insurance is a must-have for a wide variety of motor trade businesses and individuals, including:
- Car dealers and traders – Full-time or part-time, anyone buying or selling vehicles and moving stock for business purposes.
- Mobile mechanics and repairers – Those who test-drive, collect, or return customer vehicles after servicing or repairs.
- Vehicle valeters and detailers – Professionals who move vehicles to and from cleaning sites or customer locations.
- Delivery and collection agents – Individuals responsible for transporting vehicles between locations, garages, or to customers’ homes.
- MOT testers – Test-driving vehicles as part of roadworthiness checks.
- Fleet maintainers – Looking after business vehicles for couriers, taxi firms, or logistics operators.
- Home-based and part-time traders – Anyone operating without a physical garage but still driving vehicles for trade.
Whatever your role in the motor trade, having the right road risk insurance means you can operate with confidence, knowing you’re protected every time you get behind the wheel. It’s a straightforward way to keep your business compliant, safeguard your reputation, and give both you and your customers peace of mind—no matter where your next job takes you.
Get Road Risk Insurance Quotes Today
How to Get a Road Risk Insurance Quote
Getting a quote for road risk insurance is quick and easy. Here’s what you’ll need to do:
How much does Road Risk Insurance cost?
The cost of road risk insurance can vary widely, depending on your business and how you operate. Insurers look at several key factors when working out your premium, so it’s important to provide accurate information to get the best deal. To get the best value, always compare quotes, keep your business information up to date, and review your cover needs each year. Many insurers offer discounts for annual payments, secure storage, and building a no-claims bonus over time.
Here’s what typically affects the price:
- Your driving and claims history – A clean record with no recent claims or convictions can help lower your premium.
- Type and value of vehicles covered – Higher-value, specialist, or high-performance vehicles usually cost more to insure.
- Level of cover chosen – Comprehensive policies cost more than third-party only, but offer broader protection.
- Number and age of drivers – Adding younger or less experienced drivers, or insuring multiple drivers, may increase your costs.
- Business location – Operating in areas with higher rates of theft or accidents can push up premiums.
- Optional add-ons – Extras like demonstration cover, European use, or breakdown assistance will add to the total price.
- How often you drive – Businesses with frequent, high-mileage use may pay more than those who only drive occasionally.
How to save money on your Road Risk Insurance
There are plenty of ways to reduce the cost of your road risk insurance without compromising on essential cover. Taking a few of these steps can make a real difference to your insurance costs, while still giving your business the protection it needs.
Here are some practical tips to help you keep your premiums down:
Road Risk Insurance FAQ
Do I need road risk insurance if I work from home?
Yes. If your business involves driving vehicles you don’t own—even if it’s only part-time or from your own address – road risk insurance is required to drive legally for work purposes.
Can I drive any car with road risk insurance?
No. Your policy typically only covers vehicles that are connected to your business and are in your custody or control for trade purposes. High-value or modified vehicles may be excluded—always check your policy details.
Does road risk insurance cover personal use?
No, road risk insurance only covers business use. Private journeys, commuting, or using vehicles for personal reasons are not included unless your policy specifically states otherwise.
Who can drive under my road risk policy?
Only drivers who are specifically named on your policy are covered. Friends, family, or other employees who aren’t listed won’t be insured to drive.
Is demonstration cover included as standard?
Not always. If you want customers to test-drive vehicles, you’ll usually need to request demonstration cover as an add-on to your policy.
What level of cover do I need?
That depends on your business. Third-party is the minimum legal requirement, but many motor traders choose comprehensive cover for extra protection against accidental damage, fire, and theft.
Does road risk insurance include public liability?
No, not by default. Public liability insurance is a separate policy or add-on that covers claims for injury or property damage to third parties while you’re working.
Can I get road risk insurance if I’m a part-time trader?
Yes. Many insurers offer policies for part-time, home-based, or seasonal traders. Just make sure to accurately describe your business activities and vehicle usage.
Will my tools and equipment be covered?
Not under a standard road risk policy. You’ll need to add separate tools or equipment cover if you want to protect them from theft or damage.
How can I get the cheapest road risk insurance?
Keep a clean driving record, limit your named drivers, secure your vehicles, and always compare quotes at renewal to find the best deal.
