UK Road Risk Motor Trade Insurance Quotes
Road Risk Motor Trade Insurance
Compare road risks only motor trade cover for mobile mechanics, home traders, part-time traders and collection and delivery drivers. Road risks is the minimum legal cover to drive customers’ and stock vehicles on public roads, without needing fixed premises.
Why Compare Road Risks Cover?
- Compare third party, fire and theft and comprehensive road risks cover
- Suitable for mobile mechanics, home traders, car jockeys and delivery drivers
- Rated 4.8/5, 97% recommend us
What is road risks motor trade insurance?
Road risks is the minimum legal motor trade cover. It lets a trader drive and handle customer and stock vehicles on public roads as part of the trade, whoever owns the vehicle. Cover follows the trade activity rather than a single named car, so any qualifying vehicle in your care is covered while you drive it. A standard private car policy does not allow trade use, and driving customers' or stock vehicles on it is uninsured driving under the Road Traffic Act 1988.
Road risks is built around the driving a motor trader does. Mechanics road test customer cars after a service, dealers move stock between sites, car jockeys and delivery drivers collect and deliver vehicles, and mobile mechanics travel to customer addresses. Every one of these journeys sits outside standard car insurance and needs road risks cover that responds to the trade itself.
Road risks comes at three levels: third party only, the legal minimum; third party, fire and theft; and comprehensive, which adds accidental damage to the vehicle in your care. It covers driving only. It does not cover business premises, stock stored at a premises, tools or premises liability. Those sit with combined motor trade insurance, the step up for any trader with a workshop, forecourt or staff.
Brokers on our panel underwrite road risks business every day. They understand the difference between part-time home traders, car jockeys, mobile mechanics and full-time traders without premises, and they price the policy against the genuine trade profile rather than treating every motor business the same way.
Related trade cover
How road risks insurance works
Tell us about your trade
Trade type, how you use vehicles, driver ages and experience, and claims history. Accurate declarations mean cleaner quotes back from the underwriting panel.
Compare specialist quotes
Your details go to brokers who underwrite road risks business daily. They price third party, fire and theft and comprehensive cover against your specific trade profile.
Choose your cover and start trading
Pick the road risks level that fits. Third party only for the legal minimum, comprehensive for damage to the vehicle in your care. Step up to combined if you take on premises or staff.
What road risks insurance covers
Road risks insurance covers a motor trader to drive and handle vehicles on public roads as part of the trade. It is the driving layer of your policy, not a business premises policy. Here is what you can do on the road, and what road risks does not include.
What you can do on road risks
Repair, service and road testing
Drive a customer's vehicle to diagnose a fault, road test after a repair or service, and return it once the work is done.
Moving and delivering stock
Drive vehicles you hold as stock, whether moving them around a forecourt run or delivering a sold vehicle to its new owner.
Collection and delivery
Collect a vehicle from a customer, an auction or another site, and deliver it on where the trade requires it.
Demonstration and test drives
Let a genuine potential buyer test drive a stock vehicle, or take them out on a demonstration drive as part of a sale.
Moving vehicles on trade plates
Use trade plates to move eligible vehicles between sites, to and from inspections, and as part of your day to day trading.
Handling vehicles between sites
Drive vehicles in your care, custody and control on public roads while you carry out the ordinary business of the trade.
Third-party liability on the road is included at every level. If you hold comprehensive road risks, your own vehicle is covered too, alongside the third-party cover that meets your legal obligation to drive.
Not included with road risks (this needs combined)
Road risks covers the driving only. If you have a workshop, a forecourt, kit or staff, these lines sit on a combined motor trade policy instead.
- Business premises and buildingsYour workshop, unit or forecourt structure and fixtures.
- Stock stored at premisesVehicles and stock held on site rather than being driven.
- Tools and equipmentRamps, diagnostic kit, hand tools and workshop machinery.
- Public or employers liability at a premisesInjury to visitors or staff at your business location.
All policies are arranged through FCA-regulated UK insurance brokers on the MyMoneyComparison.com panel.
What road risks does not cover
Road risks is a driving-only policy. It covers you to drive customer and stock vehicles on the road, and third party liability while you do. It does not stretch to premises, stored stock, tools or the liabilities that come with a fixed location. Those need combined motor trade cover. Knowing where road risks stops matters as much as knowing what it includes.
Personal or social use of vehicles
Driving a stock or customer vehicle for the school run, family trip or weekend break is not trade activity. Without social, domestic and pleasure use added to the policy, these journeys count as uninsured driving even on your own stock.
Business premises and buildings
Road risks covers driving, not property. A workshop, unit, forecourt or office, and everything built into it, falls outside road risks. Cover for premises against fire, flood, theft and accidental damage needs combined motor trade insurance.
Stock stored at a premises
Road risks responds while you drive a vehicle, not while it sits on a forecourt or in a compound. Stock vehicles held at a premises, including overnight, are not covered by road risks. Storing stock needs the stock section of a combined policy.
Tools, equipment and machinery
Ramps, diagnostic gear, compressors, hand tools and lifting equipment are not part of a road risks policy. If fire or theft takes your tools, road risks pays nothing. Combined motor trade adds a tools and equipment section.
Public and employers liability at a premises
Road risks includes third party liability while you drive on the road. It does not cover injury to a customer on your premises or injury to an employee. Public and employers liability come with combined cover, and employers liability is a legal requirement once you take on staff.
Unauthorised or undeclared drivers
Cover only extends to drivers named on the schedule or covered by an any-driver clause meeting the declared age and licence criteria. Family members using trade plates for personal trips, or drivers not declared at quote stage, are uninsured.
Exclusions vary by insurer, so check the policy wording carefully on your declared trade type, cover level and named drivers before buying. If you have a workshop, stored stock or staff, road risks alone is not enough. For how trade plate use is regulated within road risks, see our trade plate insurance guide.
The three road risks cover levels
Road risks comes at three levels, and each one builds on the last. Start with the legal minimum at the bottom and climb up, adding more protection for the vehicle you are driving at every step.
Third party only
TPO: THE LEGAL MINIMUMThe starting point that keeps you legal on the road. It covers injury and damage you cause to other people and their property while driving a trade vehicle.
- Injury you cause to other people
- Damage you cause to their property
- Not the vehicle you are driving
Third party, fire and theft
TPFT: A STEP UPEverything at level one, with the vehicle you are driving now protected against two of the most common losses.
Builds on third party only, and adds:
- Fire damage to the vehicle you are driving
- Theft of the vehicle you are driving
Comprehensive road risks
THE WIDEST COVER Usual choiceThe top of the ladder and the level most established traders choose. It carries everything below it and adds the widest protection for the vehicle in your care.
Builds on third party, fire and theft, and adds:
- Accidental damage to the vehicle in your care, whoever is at fault
All three levels are road risks (driving) cover only. None of them include your premises, stock or tools, which is what combined motor trade insurance adds on top. Choose your driving level here, then decide whether you also need fixed-premises cover.
Road risks vs combined motor trade insurance
Road risks and combined are the two motor trade structures, and the difference is simple. Road risks covers driving only: you and your named drivers handling customer and stock vehicles on the road. Combined keeps that driving cover and adds premises, stock, tools and business liability for traders with a fixed location, employees or stock held overnight.
What combined adds on top of road risks
A combined policy bundles road risks together with every commercial cover line a premises-based motor trade business is exposed to. The schedule typically includes the following sections, with sums insured declared individually for each:
| Premises and contents | Buildings, fixtures, fittings, computer equipment, signage and the structure itself against fire, flood, theft and accidental damage. |
| Stock vehicles | Vehicles owned by the business and held for sale, including overnight cover on the forecourt or in secure storage. |
| Tools, equipment and machinery | Ramps, diagnostic equipment, compressors, welders, hand tools, lifting gear and specialist machinery. |
| Public liability | Injury to customers or members of the public on your premises, and damage to their property. Typically £2m, £5m or £10m sums insured. |
| Employers liability | Legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 if you employ anyone, including apprentices. £10m minimum sum insured. |
| Money on site | Cash takings in tills, safes and during transit to the bank. |
| Business interruption | Replaces lost trading income if a fire, flood or major theft makes the premises unusable for an extended period. |
| Engineering inspection | Statutory inspection of lifting equipment, ramps and pressure vessels under the LOLER and PUWER regulations. |
Why combined policies cost more, and what underwriters want to see
Combined motor trade is priced at the upper end of trade insurance because the exposure profile is significantly wider. A road risks claim is typically a single vehicle incident on the road. A combined claim can be a workshop fire that destroys premises, stock, tools and three months of trading income simultaneously.
Underwriters offset this exposure through risk engineering. The application asks detailed questions on security setup, customer vehicle storage, fire suppression, employee numbers, trading hours, and the value of stock and tools held overnight. Insurers may carry out a physical site inspection before binding the policy, particularly on higher-value risks.
The security setup that combined underwriters expect typically includes monitored intruder alarm, CCTV with off-site recording, key safe or key management system, gated or fenced compound for overnight stock, and secure tool storage. Discounts for these are material, often 15% to 30% off the baseline premium.
Who needs combined cover and when to upgrade from road risks
Combined is the right product for any trader with a fixed workshop, forecourt, dealership or unit. Used car dealers, full-service garages, MOT stations, bodyshops, vehicle recovery operators with depot facilities, and any trader employing staff all need combined cover by default.
The natural upgrade trigger from road risks is the move from mobile or home-based operation to a fixed premises. The moment you sign a lease on a workshop, take on an employee, or start holding more than one or two stock vehicles overnight, the exposure has moved beyond what road risks alone can cover.
See our combined motor trade insurance page for full underwriting details, or our road risks vs combined comparison guide for a side-by-side breakdown of the two products.
Combined motor trade premiums vary widely with premises type, stock value and security setup. Compare motor trade insurance quotes to see how your specific trade setup is rated.
Why road risks insurance costs what it does, and what shapes the price
Road risks premiums vary because traders vary. A part-time home trader moving the odd car sits on a very different risk profile to a full-time car jockey covering hundreds of vehicles a month. Knowing which levers move the price helps you ask the right questions before you buy.
Declare every activity you genuinely do, even the occasional ones. The single most common claim-decline reason in motor trade is a mismatch between the declared business description and the activity at the time of loss. If you run a valeting business but occasionally do light mechanical repairs for friends, the policy needs to cover both. Honest disclosure at quote stage costs marginally more, but it is the difference between a paid claim and a declined one.
MMC Motor Trade Insurance Specialists, FCA-authorised (reg. 916241)
Trade type and activity
Used car dealers, mobile mechanics, car jockeys, valeters and delivery drivers all rate differently. The declared trade and the activities you carry out set the underwriting bracket more than any other single factor.
Driver age and experience
Age and time in the trade drive the price hard. Drivers under 25 pay more and have fewer insurers to choose from, while proven trade experience brings the premium down.
Claims and conviction history
Previous motor trade claims and motoring convictions push premiums up across every age band. A clean claims record and a clean licence are the strongest levers you have on price.
Number of vehicles and named drivers
How many vehicles you handle and how many drivers are on the policy both feed the rate. Adding young or newly qualified named drivers raises the premium; a single experienced trader keeps it low.
Level of cover and use
Third party only sits at the bottom of the range, comprehensive road risks at the top. How you use the cover, full-time, part-time or occasional trading, also shapes the price.
Postcode and overnight security
Where you are based and where vehicles sit overnight feed theft and accident rating. A secure driveway, garage or gated space, and trackers on higher-value vehicles, reduce the premium.
Every road risks policy is rated on its own profile. Compare road risks quotes to see how your trade, cover level and driver profile shape the premium across our specialist broker panel.
Choose your road risks cover level
Road risks comes at three levels, and which one fits depends on how much of the vehicle in your care you want protected. Third party only is the legal minimum. Third party, fire and theft adds fire and theft of the vehicle you drive. Comprehensive road risks adds accidental damage whoever is at fault. All three cover driving only; premises, stock and tools need a step up to combined.
Third party only
The legal minimum for any motor trade activity on UK roads. Covers injury and damage you cause to others while driving customer and stock vehicles, plus trade plates use. It does not cover the vehicle you are driving.
- Driving customer vehicles
- Trade plates use
- Third party liability
- Fire and theft of the vehicle
- Accidental damage to the vehicle
Third party, fire and theft
The middle road risks level and a popular pick. Everything in third party only, plus cover for the vehicle you drive if it is stolen or catches fire. A balance of protection and cost for working traders.
- Everything in third party only
- Fire damage to the vehicle
- Theft of the vehicle you drive
- Third party liability on the road
- Trade plates use
Comprehensive road risks
The top road risks level. Everything in third party, fire and theft, plus accidental damage to the vehicle in your care whoever is at fault. The choice for traders handling higher-value vehicles.
- Everything in third party, fire and theft
- Accidental damage to the vehicle in your care
- Cover whoever is at fault
- Third party liability on the road
- Trade plates use
| Cover feature | Third party only | Fire and theft | Comprehensive |
|---|---|---|---|
| Driving customer and stock vehicles | |||
| Trade plates use | |||
| Third party liability | |||
| Fire damage to the vehicle you drive | |||
| Theft of the vehicle you drive | |||
| Accidental damage to the vehicle in your care | |||
| Cover whoever is at fault | |||
| Business premises and buildings | |||
| Stock, tools and equipment | |||
| Public and employers liability |
Cover levels and optional extras vary between insurers. Compare road risks quotes to see what each level includes for your trade and how it is priced. If you take on premises, stock or staff, step up to combined.
How much does road risks insurance cost?
Road risks is the lowest-cost way into motor trade cover, insuring you to drive customer and stock vehicles without paying for premises, tools or liability you do not yet need. Premiums move with your trade profile, so the range below is where most road-risks policies land.
a year for road risks cover
This is the headline range for road risks only, the standalone cover that lets you drive vehicles in connection with your trade. Where you sit within it depends on your setup, your driving record and the vehicles on the policy.
What moves a road risks premium
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Trade type and activity
Buying and selling, servicing or valeting all carry different risk, and how many miles you cover in trade vehicles feeds directly into the price.
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Driver age and experience
Under-25s pay more, and longer trade experience with a clean licence brings the premium down.
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Claims and convictions
Recent motor claims and driving convictions push premiums up, while a clean record earns the sharpest rates.
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Vehicles and named drivers
The number of vehicles you handle and the number of named drivers on the policy both scale the premium.
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Use and business setup
Part-time or home-based use, and whether cover is social, domestic and pleasure as well as trade, both affect the price.
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Postcode and overnight security
Your area rating and where vehicles are kept overnight, from a locked drive to a secure yard, shape the final figure.
Adding premises, tools and liability cover moves you to combined cover, which costs more, typically £1,200 to £3,500 a year. Road risks stays the cheaper option if all you need is to drive.
Indicative, not a quote: The figures on this page are illustrative annual ranges drawn from current UK motor trade market data. They do not constitute a quotation or an offer of insurance. Your own road risks premium depends on your individual circumstances, and the only way to know your price is to compare quotes. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
See what your trade type, driver profile and vehicles price at across the MyMoneyComparison.com broker panel.
When road risks claims get paid, and when they get declined
Most road risks claims get paid. The ones that get declined or reduced almost always come back to the same handful of issues: a drive outside the declared trade, the wrong cover level for the loss, a driver not named on the schedule, or a proof-of-trade or Motor Insurance Database requirement not met. The difference between a paid claim and a declined one is usually decided before any incident happens.
| Scenario | When the claim is paid | When the claim is declined |
|---|---|---|
| Customer vehicle damaged on a road test after repair | Paid Comprehensive road risks is in place, the driver is named on the schedule, and the road test is a genuine trade journey. | Declined Third party only cover taken so the vehicle in your care is not covered, the driver not named on the schedule, or the drive carried out for a non-trade journey. |
| Stock vehicle damaged while being driven to auction | Paid Comprehensive road risks in place, which covers accidental damage to the vehicle in your care while it is being driven for the trade. | Declined Third party, fire and theft or third party only taken, so accidental damage to the vehicle you are driving is not covered. |
| Fire or theft of a stock vehicle you are driving | Paid Third party, fire and theft or comprehensive road risks in place, covering fire and theft of the vehicle you are driving for the trade. | Declined Third party only taken, which covers injury and damage to others but not fire or theft of the vehicle you are driving. |
| Damage to a car stored at your home or a unit | Paid Combined motor trade taken with a stock or premises section; road risks alone is driving cover and does not cover a vehicle standing at a premises. | Declined Road risks only cover held, so damage to a vehicle stored at a premises rather than being driven is outside the policy and needs combined cover. |
| Third-party injury in a road accident on a trade drive | Paid Third-party liability on the road is included at every road risks level, so injury and damage you cause to others on a trade drive is covered. | Declined Driver not named on the policy, no valid entry on the Motor Insurance Database, or the vehicle driven for private use outside the trade. |
| A young or newly added driver has an accident | Paid The driver was declared and accepted on the schedule, meets the insurer's minimum age and licence conditions, and stays within the agreed vehicle limits. | Declined Driver added without being declared, below the insurer's minimum age, or driving a vehicle group outside the agreed limits on the schedule. |
Declined road risks claims almost always trace back to one of three things: a drive outside the declared trade, the wrong cover level for the loss (third party only will not pay for the vehicle you are driving), or a driver not named or a proof-of-trade condition not met. Insurers can also request purchase invoices, proof of trade status and the Motor Insurance Database entry at claim stage to verify the drive was genuine trade work.
Specialist brokers price these road risks scenarios into your cover from the start. Compare road risks quotes to see which cover level fits your trade and what needs to be named on the schedule.
How to prepare for a road risks quote
A specialist broker can price road risks properly when the underwriting picture is accurate from the start. Five minutes of preparation before you fill in the form usually means cleaner quotes, fewer follow-up calls, and better terms across the panel.
Gather your proof of trade
Road risks needs evidence that you trade in vehicles. Insurers rate the policy on the declared trade and want to see genuine trade activity.
- Companies House number or sole trader UTR
- Purchase invoices and sales receipts
- Auction memberships and parts supplier accounts
- Trade years and any previous road risks schedule
Know your drivers and vehicles
Road risks is priced on who drives, their age and record, and the vehicles they handle, not a generic motor trade template.
- Driver age, licence type and years held
- Named drivers and their claims and convictions
- Number and value of vehicles you drive
- Home postcode and overnight parking
Compare and speak to a specialist
Submit once, get matched with brokers who arrange road risks cover daily.
- Quotes from FCA-regulated brokers on our panel
- Third party, third party fire and theft or comprehensive
- Combined cover priced separately if you need premises
- One form, multiple comparable quotes
Road risks cover by trade type
Road risks is the driving cover, so it suits traders whose work is mostly on the road rather than in a workshop. Open any section below to see how road risks sits for the trade types that take it most often, and where combined cover is the step up if you hold a premises or stock.
Mechanics and independent garages
Repairers drive customer vehicles for road testing after a service or repair. Road risks is the cover that lets them do this legally on the road, at third party, third party fire and theft or comprehensive level. It covers the driving, not the building.
Road risks alone does not cover a fixed workshop, the tools inside it or an employed technician. A repairer working from their own unit with staff needs combined motor trade, which adds premises, tools and liability on top of the road risks element.
Buyers and sellers without a forecourt
Traders who buy and sell cars but keep no forecourt drive stock and part-exchange vehicles on the road: collecting, delivering and taking buyers on test drives. Road risks is the right fit here, and comprehensive road risks covers accidental damage to a stock vehicle while it is being driven.
Road risks does not cover a vehicle standing at a premises overnight. If you start holding stock at a unit or on a forecourt, that overnight exposure sits under a combined policy with a stock section, not road risks.
Mobile mechanics and home traders
Mobile mechanics travel to customer addresses rather than working from a fixed workshop, so they are a natural fit for road risks. It covers driving customer and trade vehicles on the road for repair and road testing, with no premises exposure to insure.
Tools carried in the van and liability for work done at a customer address sit outside road risks and can be added separately. See our dedicated mobile mechanic insurance page for cover specifics, or compare road risks quotes through specialist brokers who price mobile trade work daily.
MOT stations and testing centres
A licensed testing station is a premises trade, so road risks on its own is not enough. Road risks is only the driving element; the ramp, the building, the equipment and the testing licence all sit under a combined policy built around the site.
If your work is fixed at a testing centre rather than out on the road, combined cover is the right route. See our MOT station insurance page for cover that meets the regulatory requirements MOT testing involves.
Bodyshops and accident repair centres
Bodyshops collect and deliver accident-damaged cars and road test them once repaired, and road risks covers that driving. But a bodyshop also holds customer vehicles at a premises for days or weeks while work is done, and that standing exposure is not road risks.
Because vehicles sit on site, a bodyshop needs combined motor trade with a premises and customer vehicle section, not road risks alone. Road risks is the right product only where the work is genuinely on the road with no vehicles kept overnight.
Vehicle recovery and breakdown operators
Recovery work is on the road by nature: driving to a breakdown, loading a damaged vehicle and transporting it between locations. That driving exposure is a road risks matter, though recovery is specialist and usually needs a recovery operator endorsement sized to the vehicles carried.
See our breakdown and recovery operator insurance page for cover that addresses the genuine risk profile of recovery work, rather than generic motor trade templates.
Valeters and detailing businesses
Mobile valeters and detailers collect, deliver and drive customer cars for cleaning and paint protection work, often prestige and high-value cars. Working from the road with no premises, they are a good fit for road risks, and comprehensive road risks covers accidental damage to a car in their care while driving it.
The policy must declare valeting as the actual trade. A common claim-decline pattern is a valeter carrying out light mechanical or paint repairs on the side without updating the policy, which voids cover for those activities. Honest declaration at quote stage is the simple fix.
Part-time and home traders
Part-time traders buying and selling vehicles alongside other work, and home-based traders operating from a driveway, need genuine motor trade cover even at low volumes. Buying or selling more than two or three vehicles a year for profit qualifies as trade activity, and road risks is the minimum legal cover for it.
Road risks is usually the right fit for the part-time profile, with the policy declaring the home address as the operating location and no premises or stock section to pay for. See our part-time motor traders insurance guide for cover priced specifically for side-business motor trade activity.
Every trade has its own driving profile. Compare road risks quotes to see how your specific trade, drivers and operating pattern are rated across the MyMoneyComparison.com broker panel.
Who needs road risks insurance?
Road risks cover suits motor traders who work without fixed premises, or who only need the driving side of the cover. If you handle vehicles you do not own but do not keep stock or run a workshop, this is usually the policy that fits.
Mobile mechanics
Working from a van at customer sites and needing to drive customers' vehicles, with no workshop of your own.
Home-based traders
Buying and selling vehicles from a home or driveway, with no commercial premises or forecourt to insure.
Part-time and weekend traders
Trading a few vehicles alongside a main job, needing legal cover to drive them on the road.
Car jockeys and trade drivers
Moving and delivering vehicles for dealers and auction houses, driving a range of trade cars each day.
Collection, delivery and valet drivers
Collecting, delivering or valeting customers' vehicles as part of a service you provide.
Sole traders and new starters
Small-volume buyers and sellers getting started, keeping costs low while you build the business.
Have a workshop, forecourt, stored stock or staff? You will usually need combined motor trade insurance instead, so your premises, tools and liability are covered as well as the driving. Not sure which fits? Compare road risks quotes and we will match the cover to how you trade.
Road risks vs standard car insurance
The two products look similar on the surface. They cover very different things. Standard car insurance is built around a named vehicle used for social, domestic and pleasure driving by the policyholder. Road risks is an open policy built around the trade itself, covering any qualifying vehicle the trader drives while it is in their care, custody and control.
| Comparison | Road risks Motor trade driving cover | Standard car insurance SD&P or business use |
|---|---|---|
| Who needs this cover | Any trader who drives customers' or stock vehicles on the road: mobile mechanics, part-time buyers and sellers, valeters, car jockeys and delivery drivers | Individual drivers using their own named vehicle for personal driving, commuting or limited business use |
| Policy structure | Open policy. Covers any vehicle the trader drives under the declared trade, at third party, third party fire and theft or comprehensive level | Vehicle-specific. Covers a defined list of named vehicles only, with each vehicle individually rated |
| Driving customer vehicles | Included as standard for declared trade activity, including test drives, road testing and movement between sites | Not covered. Driving a vehicle owned by someone else for trade purposes voids the policy |
| Trade plates use | Included on most road risks and combined policies, allowing legal movement of untaxed trade vehicles | Not applicable. Standard car insurance does not interact with the DVLA trade licence system |
| Stock held at a premises | Road risks covers driving stock vehicles on the road, but not stock standing at a premises overnight, which needs combined cover | Not covered. Standard car insurance does not extend to vehicles held as commercial stock |
| If you trade on the wrong cover | Cover responds, claim is paid, your business continues operating normally | Claim is declined. Fixed penalty notice with 6 licence points and an unlimited fine for driving uninsured under the Road Traffic Act 1988 |
| Indicative annual cost | £600 to £1,500 a year for road risks cover, the lowest-cost motor trade cover; combined costs more once premises and stock are added | £500 to £900 a year for comprehensive cover on a personal car with SD&P or limited business use |
Important: Cost ranges shown are indicative annual averages drawn from current UK market data. They are illustrative only and do not constitute a quotation or offer of insurance. Actual premiums vary by individual circumstances, trade type, vehicle, postcode, claims history and insurer. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
Read the full breakdown: what is motor trade insurance. Or compare road risks quotes if you already know your work involves driving trade vehicles.
Road risks for traders under 25
Young traders face the toughest underwriting picture for road risks cover. Limited driving history, limited trade experience and statistical accident frequency all push premiums higher, and fewer insurers will quote. Cover is available, but the route to a workable policy involves the right structure rather than the cheapest quote on day one.
Most mainstream road risks insurers will not write cover for drivers under 25 without significant restrictions, and many decline drivers under 21 entirely. Cover is available through specialist brokers using named driver structures, telematics policies, increased voluntary excess, and vehicle value caps. Expect premiums 40 to 60% higher than equivalent drivers in their 30s with the same trade profile.
Under-25 age restrictions
Most mainstream insurers cap motor trade road risks cover at age 25 minimum. A smaller specialist panel will quote drivers aged 21 to 24 with restrictions. Drivers under 21 typically need bespoke broker placement rather than standard panel quotes.
Limited insurer appetite
The number of insurers actively quoting under-25 road risks is small. Generic comparison sites typically return very few quotes or decline entirely. Specialist brokers know which underwriters are open to young drivers and how to present the case.
Telematics and black box policies
A small number of specialist road risks insurers offer telematics-backed policies for young drivers. Cover is priced against actual driving behaviour over the policy year, with cleaner driving patterns earning meaningful renewal discounts.
Named driver only structures
Young drivers usually need to sit on a named driver basis rather than any-driver cover. Often paired with an older experienced trader as main driver, the young driver becomes a named additional driver, which significantly improves the underwriting picture.
Increased voluntary excess
Agreeing a higher voluntary excess reduces the premium significantly for young drivers. Typical excess loadings on under-25 road risks policies start at £750 and can rise to £2,500 or more, depending on the vehicle value cap and driver record.
High-performance vehicle restrictions
Under-25 drivers face strict vehicle value and performance caps. Prestige cars, modified vehicles and high-insurance-group stock are typically excluded or require specialist referral. Most policies cap maximum single vehicle value at £15,000 to £25,000 for young drivers.
Young traders need a broker who knows which insurers will quote road risks and how to structure the policy. Compare road risks quotes through a specialist panel that understands under-25 underwriting.
How to reduce a road risks premium
Road risks is already the lowest-cost motor trade cover, but there are real practical levers that move the premium down further without cutting back your cover. Pull two or three of these together and the saving across an annual policy can be significant.
Improve overnight parking
Road risks is priced partly on where the vehicles you drive sit overnight. A driveway, garage or off-road parking rather than the street, plus a good home postcode, gives underwriters a lower theft risk to rate.
Fit trackers on higher-value cars
Thatcham-approved trackers on prestige or high-value cars you drive reduce theft loss exposure and earn better terms from specialist insurers. Particularly useful for traders who regularly handle cars above £25,000.
Use a named driver structure
Named drivers cost less than open any-driver cover because the underwriting risk is fixed and known. Limit the policy to actual employees and family members involved in the trade, rather than open-driver flexibility you do not use.
Set realistic vehicle value caps
Inflating the maximum single vehicle value beyond what you genuinely drive costs more in premium. Set the cap at the actual ceiling of the cars you handle, with specialist referral kept in reserve for occasional prestige work.
Maintain proof of trade records
Keep purchase invoices, sales receipts, auction memberships and parts orders organised and ready to produce. Strong proof of trade earns better terms at renewal and reduces underwriter loadings for newer traders.
Use a specialist road risks broker
Generic comparison sites quote road risks at the loaded edge because trade driving does not fit standard car or commercial underwriting. Specialist brokers see this market daily and price it properly with the right niche insurers.
Most savings come from combining two or three of these levers, not just one. Compare road risks quotes to see what your specific trade, drivers and vehicle profile prices at across the specialist panel.
Specialist Road Risks Insurance
Specialist road risks comparison since 2013
Since 2013, MyMoneyComparison.com has helped UK motor traders find the right road risks cover without the runaround. Whether you work as a mobile mechanic out of a van, buy and sell part-time from home, valet and deliver cars, or move stock and part-exchanges on the road, our specialist broker panel arranges road risks cover every day. Compare specialist motor trade insurance options from a panel that understands the three road-risks levels, trade plates, and where combined cover is the step up.
Generic comparison sites versus specialist road risks brokers
Standard comparison sites are built around mainstream private and commercial motor insurance. Road risks sits outside that underwriting profile, which is why specialist brokers consistently price the same risk more competitively and with cover that actually responds to driving customers' and stock vehicles for the trade.
Standard motor and commercial aggregators
Built around mainstream private car and business van insurance. Road risks is typically classed as a non-standard risk and either declined or priced at the loaded edge of the panel.
Typical limitations- Limited or no road risks options
- No cover for driving customers' vehicles
- Part-time and home traders frequently declined
- Trade plates and demonstration cover not supported
- Prestige and high-value cars outside the panel
Specialist road risks brokers and underwriters
FCA-regulated brokers who arrange road risks cover every day. The three cover levels, trade plates, demonstration and named drivers sit on the policy from the start, sized to the trade declared, with combined available if you later need premises.
Built around trade driving- Third party, third party fire and theft or comprehensive
- Part-time, home and full-time trader options
- Trade plates, demonstration and named driver cover
- Prestige, modified and imported cars supported
- Mobile mechanics, valeters, buyers, sellers and car jockeys
A quote returned from a generic comparison site often looks competitive but excludes the cover a road risks trader actually needs. Buying it can leave you without cover for driving customers' vehicles, without trade plates use, or with your declared trade missing entirely. Always confirm the schedule matches the trade you genuinely do before paying.
Trade plates, DVLA rules, and why misuse is more costly than most traders realise
Trade plates let motor traders move untaxed and unregistered vehicles on UK public roads for business purposes only, and their use falls within road risks cover. They are a powerful operational tool when used correctly. They are also one of the most commonly misused items across the UK motor trade, and the consequences when caught are severe.
What trade plates are and the journeys they legally cover
Trade plates are temporary registration plates issued by the DVLA to licensed motor traders, vehicle testers and vehicle manufacturers. They display red letters and numbers on a white background and identify the business rather than a specific vehicle, which is why they can be transferred between vehicles you are handling for trade purposes.
Trade plates are applied for using DVLA form VTL301, with proof of road risks insurance, business registration and trade activity required. Licences run for six or twelve months and expire on either 30 June or 31 December.
Legitimate uses of trade plates include road testing a vehicle after manufacture, repair or service; collecting a newly purchased vehicle from auction or seller; demonstrating a stock vehicle to a prospective customer; moving stock between forecourts or to an MOT station; and delivering a sold vehicle to the buyer. See our trade plate insurance guide for the complete list of qualifying business uses.
What it actually costs to misuse trade plates
A real-world scenario: a part-time used car dealer takes a stock vehicle out on trade plates for a Sunday family lunch. On the way home, the vehicle is involved in a low-speed collision with a parked car causing £3,800 of damage. The road risks insurer reviews the claim, identifies the journey as personal use rather than declared trade activity, and the DVLA is notified of the misuse via the police report.
| Third party damage claim | £3,800 |
| DVLA fine for trade plate misuse | up to £5,000 |
| Trade licence revocation | Possible |
| Road risks cover loaded at renewal | £800+ per year |
| Personal driving conviction risk | 6 points, fine |
| Total realistic exposure | £10,000+ |
The same trader using a personal car with social, domestic and pleasure cover added to their road risks policy, or driving their own separately-insured vehicle, would have had the claim handled normally with no DVLA exposure and no impact on their trade licence. The maths is severe but the fix is genuinely simple.
How to use trade plates compliantly and stay insured
DVLA and police enforcement increasingly relies on number plate recognition and motor insurance database checks. Trade plates parked on residential streets overnight, used after working hours, or displayed on vehicles that fail roadworthiness checks all flag for follow-up investigation.
Three rules cover most legitimate trade plate use. First, only use trade plates for genuine business journeys directly related to the trade activity declared on your DVLA application. Second, keep a record of every trade plate journey including date, time, vehicle details and purpose, so you can produce evidence if challenged. Third, make sure the vehicle is roadworthy, insured under your road risks policy, and that you have not obscured the original registration plates incorrectly.
For personal driving of stock vehicles, the right approach is to add social, domestic and pleasure use to the road risks policy schedule. For personal vehicles, keep a separate private policy entirely. See our trade plate insurance page for full underwriting details, or our motor trade insurance guide for how trade plates sit within the wider road risks policy.
Trade plates remain the most efficient way to move vehicles legally as part of a motor trade business, but only when used within the DVLA rules. Compare road risks quotes that include trade plate cover from specialist brokers.
Compare road risks motor trade insurance quotes with some of the UK's top motor trade providers, including:
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Road Risks Motor Trade Questions Answered
Detailed answers to help you understand more about road risks motor trade insurance.
What is road risks motor trade insurance?
Road risks motor trade insurance is the minimum legal cover a trader needs to drive and handle vehicles that belong to customers or are held as stock, on public roads, as part of their trade. Cover applies to any vehicle in your care, custody and control for declared trade activity, without adding each one individually. It is driving cover only and does not include premises or stock storage. A standard car or van policy does not cover trade activity.
Can I get road risks cover from home?
Yes. Road risks cover suits home-based and part-time traders because it does not need fixed premises. The home address is declared as the operating base and proof of trade activity is required at the quote stage. Road risks is the driving-only cover, so it fits traders who work from home rather than a workshop.
Do I need premises for road risks cover?
No. Road risks is the cover for traders without fixed premises, such as mobile mechanics, home traders and part-time operators. It covers driving customers’ and stock vehicles on public roads. Combined cover, which adds a premises section, is for traders with a workshop, forecourt or business unit.
Can I drive customer cars on road risks?
Yes. Driving customers’ vehicles is the core of road risks cover. Cover applies the moment the vehicle enters your care, custody and control for declared trade activity such as repair, service, road testing or movement between sites. This is what road risks is for, and a standard car policy will not cover it.
What proof of trade do insurers require?
Common proof of trade includes purchase invoices and sales receipts for vehicles bought or sold, auction house memberships, parts supplier accounts, Companies House registration, a sole trader UTR and trade qualifications. Insurers can request these at any time, including at the claim stage. The vehicles you drive also need recording on the Motor Insurance Database (MID).
Can I get road risks cover with convictions?
Yes, although the panel of available insurers narrows. Motor convictions, any criminal record and bankruptcy history all need to be declared honestly at the quote stage. Specialist brokers work with insurers who accept non-standard risks on road risks cover, usually with a loaded premium.
What is not covered by road risks?
Road risks covers driving and moving vehicles on public roads for trade, but not everything. Typical exclusions include race-prepared vehicles, vehicles above the policy value cap, grey imports without a specialist endorsement, and any vehicle used outside declared trade activity. It also does not cover premises, stock storage or tools, which sit under combined cover. High-value and prestige stock often needs specialist referral.
Can I use trade plates for personal trips?
No. Trade plates are strictly for business journeys connected to declared trade activity. Personal use, family trips and commuting on trade plates is a DVLA offence with fines up to £5,000 and voids road risks cover for that journey. Personal driving needs social, domestic and pleasure use added to the policy or separate private cover.
Can part-time traders get road risks cover?
Yes. Part-time and side-hustle traders need genuine motor trade cover even at low volumes, and road risks is the usual fit. Buying or selling more than two or three vehicles a year for profit counts as trade activity. Road risks priced for part-time use is widely available through specialist brokers.
What is combined motor trade insurance?
Combined motor trade insurance is the step up from road risks. It bundles road risks together with premises, contents, stock storage, tools, public and employers’ liability and business interruption into one policy. Road risks alone does not include any of these, so combined is the right structure for a trader with a fixed location or employees.
Can mechanics get road risks only?
Yes. Mobile mechanics with no fixed workshop can sit on road risks cover to drive and road test customers’ vehicles. Mechanics working from a fixed workshop usually need combined cover instead, to include premises, equipment and any employees. Road risks is the driving-only cover for those without premises.
What are the three road risks cover levels?
Road risks comes at three levels. Third party only (TPO) is the legal minimum and covers injury and damage you cause to others, not the vehicle you are driving. Third party, fire and theft (TPFT) adds fire and theft of that vehicle. Comprehensive road risks adds accidental damage to the vehicle in your care, whoever is at fault. Third-party liability on the road is included at every level.
Does road risks cover test drives?
Yes. Test drives with prospective customers are covered under demonstration cover, which is included on most road risks policies. Customers usually need to meet the policy’s minimum age and licence conditions. This lets you road test and demonstrate vehicles as part of your trade.
How much does road risks cover cost?
Road risks is the lowest-cost motor trade cover. Part-time and home traders typically pay around £600 to £1,500 a year for road risks. Combined cover, which adds premises and stock, costs more, often from £1,200 to £3,500. Your price depends on trade type, driver age and experience, claims history and the vehicles covered. These are indicative averages, not quotations.
Can drivers under 25 get road risks cover?
Drivers under 25 can get road risks cover through specialist brokers, but with restrictions such as named driver structures, telematics, a higher excess and vehicle value caps. Drivers under 21 often need bespoke broker placement, and many insurers set a minimum age of 21 or 25. Premiums for younger drivers typically run higher than for equivalent drivers in their 30s.
What is the difference between road risks and combined motor trade?
Road risks is the legal minimum, covering driving customers’ and stock vehicles on public roads plus the use of trade plates. Combined adds premises, overnight stock storage, tools and public and employers’ liability into one policy. Road risks suits mobile and home traders without premises; combined suits any trader with a fixed workshop or forecourt.
Can I add named drivers to a road risks policy?
Yes. You can add named drivers to a road risks policy, such as business partners or staff who drive customers’ or stock vehicles. Each driver’s age, licence and claims history is rated, so adding a younger or higher-risk driver raises the premium. Every driver must be declared, as an undeclared driver can void a claim.
How can I reduce my road risks premium?
Several things can bring a road risks premium down: a higher voluntary excess, secure overnight parking, a clean claims and conviction record, keeping named drivers to those who genuinely need cover, and building trade experience over time. Paying annually rather than monthly and giving accurate declarations at the quote stage also help. A specialist broker can compare the panel to find the right level for your trade.
Do I need to be on the Motor Insurance Database?
Yes. Vehicles you drive under road risks cover must be recorded on the Motor Insurance Database (MID), the central record police use to check that a vehicle is insured. Your insurer or broker adds them, and keeping the MID up to date means the vehicles in your care show as insured on public roads. Driving an uninsured vehicle is an offence under the Road Traffic Act.
What do I need for a road risks quote?
You will need proof of trade activity (purchase invoices, sales receipts, auction memberships), business registration details, the licences and claims history of any named drivers, and your years of trade experience. Because road risks is driving-only, you will not need premises or stock storage details. A few minutes of preparation usually produces cleaner quotes.
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