Would you like a Road Risk policy or Combined policy? Do you know the difference between these options and which one is right for you?
A Road Risk Only motor trade insurance policy is designed for newer, smaller traders who operate from home or own a small business. It’s generally cheaper than a combined policy but only covers road risks, so it will leave your premises and other property uninsured.
Road Risk policies work in a similar way to regular car insurance in the sense that they offer you three different levels of cover to choose from:
1. Road Risk Third Party Only: The same as normal car insurance, this policy will only cover your liability if you are in an accident that wasn’t your fault.
2. Road Risk Third Party, Fire and Theft: As the name suggests, this level of cover will encompass third party accidents in addition to damage caused by fire or theft.
3. Road Risk Comprehensive: Like the car version, this policy will cover you for everything already mentioned plus any damage to the car should you be in an accident that is deemed to be your fault.
In addition to the three basic levels of insurance, you can add extra Liability cover onto a Road Risk policy. Sites like https://www.quotemetoday.co.uk/motor-trade-insurance can help you establish what level of insurance you might need.
Combined Motor Traders insurance policies are more appropriate if you own a larger or more complex motor trade business.
Combined insurance will cover all the aspects of Road Risk, plus other aspects of your business such as your premises, stock, cash kept on site, tools, machinery and more.
Which do I need?
The answer to this will mostly depend on the size of your business and how much coverage you’re looking for. Always ensure your motor trade insurance is covered by the FCA.
If you’re a trader selling vehicles from your home driveway, you’re likely to be fine with just a Road Risk insurance policy. If you’re a larger vendor with premises, tools and other business aspects that you want to have protected, a Combined insurance policy may be more suitable. Ultimately, you are the best judge of how much coverage you want and the price you’re happy to pay for it, so check all options carefully.