Road risk vs combined motor trade insurance: which do you need?
Road risk only covers you to drive vehicles on the road for your motor trade business. Combined adds premises, stock,…
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What is motor trade insurance?
Motor traders insurance protects your business from the risks faced while working in the motor trade industry.
The coverage included in motor trade insurance is flexible and can be customised for your business and its needs.
However, the main coverage of this policy can insure you for legally driving your customer’s vehicles when they are in your care, custody or control.
The importance of motor trade insurance
A motor trader insurance policy protects your business. It can prevent financial loss and business disruptions following accidents, theft or damage.
Protecting your business premises
Motor trade insurance can cover your building premises, equipment and tools. It protects against events like fire, theft, or vandalism.
Safeguarding your customers
This insurance covers you for moving or driving your customer’s car. Giving you and your customers peace of mind.
Ensuring your vehicles are covered
Comprehensive cover for your business vehicles can help you work more flexibly without risking driving uninsured.
Meeting legal requirements
You will need the necessary insurance to legally drive vehicles as part of your motor trade operations. Otherwise, you could face fines or even business closure for driving without insurance.
Advice from Quotezone experts:
“I would urge people to make sure they have the appropriate motortrade insurance – there are unique risks that motor traders need to be protected from, and if they intend to drive customer vehicles then a type of motortrade insurance known as ‘road risk insurance’ isn’t just a sensible business decision, it’s a legal requirement.”
Greg Wilson, Founder of Quotezone.co.uk.
What businesses might need motor trade insurance cover?
Car or auto dealer insurance
Scrap and salvage dealer insurance
Repair garage insurance
Insurance for garages offering MOTs or services
Valeting or car detailing insurance
Car restoration insurance
Mobile mechanic insurance
Insurance for logistics companies
Breakdown and recovery truck insurance
Part time motor traders insurance
Car haulage insurance
Car transportation insurance
What does motor trade insurance cover?
Motor trade insurance policies work by providing coverage options including:
Road risk insurance
Road risk insurance allows motor traders to legally drive customer vehicles on public roads. This is also known as vehicle transportation insurance. Coverage levels include comprehensive, third party, theft and fire, and third party only cover.
Combined motor trade insurance
This combines road risk insurance with other coverage that protects motor trade businesses. Business premises, public liability, and tools and equipment coverage are just some examples. Other protections are available on combined motor trade insurance policies.
Additional coverage available on combined motor trade policies
Motor trade insurance policies can offer more than just auto transport insurance. Additional coverage options that can enhance your protection include:
Public liability insurance
Public liability insurance protects your business from claims made against you from the public. These could be claims for harm or damage that happens on your business premises, or because of your business activities. But this insurance can cover legal expenses or compensation you are liable for.
Product liability insurance
Product liability insurance covers you if a product you sell or fix through your motor trade business causes harm or damage. These claims could be for injury or accidental damage.
Employers liability insurance
Employer liability insurance is a legal requirement for businesses with employees. It covers compensation if an employee is injured or falls ill because of their work.
Business interruption insurance
Business interruption insurance covers lost income and running costs when your business is forced to stop. Covered interruptions can include damage to your building or key equipment.
European cover
This can offer full cover for your business vehicles when driving in EU countries, including Ireland.
Goods in transit cover
Goods in transit insurance covers vehicles or parts while being transported by your business. It can protect them against theft or damage during transport.
Business premises, stock and equipment cover
This is also known as material damage cover. It protects your business premises, equipment, and stock against physical loss or damage. It covers events like fire, theft, or vandalism.
Domestic use
You will need to specify if you want to be insured to use vehicles on your motor trade insurance for domestic purposes. Otherwise, you could risk voiding the policy.
What level of cover do I need on my motor trade policy?
Balancing the right level of coverage with the cost of motor trade insurance is crucial to ensure your business is protected.
Assessing your business needs
Consider the risks that your business faces. These will stem from your business activities, premises, equipment, and vehicles.
Choosing your coverage
Protect your risks with the appropriate coverage. A motor trade insurance comparison helps you understand the cost of including different types and levels of coverage.
Compare motor trade insurance quotes
Finding cheap motor trade insurance policies that best suit your business is essential. Comparing policies means you won’t pay over the odds.
How can I find cheap motor trade insurance?
Transfer your no-claims bonus
Some insurers will let you transfer your personal no-claims bonus to your motor trade insurance policy. So you can save with a no-claims discount.
Increase your excess
Choosing a higher voluntary excess can lower your premium. Just make sure you can afford to pay the amount if you need to make a claim.
Improve security measures
Improving the security at your premises can reduce your premium. You can do this by installing alarms or CCTV to deter theft and vandalism.
Bundle policies
Buying the cover needed for motor trade businesses separately can be more expensive. Consider bundling these into one combined motor trade insurance policy.
Limit your coverage
Avoid coverage you don’t need. Additional cover or unnecessary add-ons can increase your motor trade insurance premiums.
Paying for cover upfront
Pay your policy annually if you can. Monthly instalments might feel cheaper, but admin fees and interest usually mean you pay more overall.
Compare insurance for motor trade businesses
Comparing motor trade insurance online could help you find some of the cheapest deals. At Quotezone.co.uk you can quickly compare policies from a wide range of trusted UK motor insurers.
Motor trade insurance FAQs
Can I get a part time motor trade insurance quote?
How can I get the best motor trade insurance?
How much is motor trade insurance?
Can I drive any car with motor trade insurance?
Does motor trade insurance cover cars using trade plates?
Can I get motor trade insurance if I’m under 25?
Why has motor trade insurance gone up so much?
What is classed as a trade vehicle?
Is it worth getting motor trade insurance without premises?
How to get motor trade insurance?
Reviewed by: Lee Evans
Business & Leisure Insurance Expert
Written by: Katie Gawley
Insurance Content Writer
Fact-checked by: Quotezone Editorial Team
This content follows our Editorial Guidelines
Last Updated: 16 June 2025
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