Difference Between Road Risk and Combined Cover

If you work within the motor trade industry, you will have at some stage taken out a motor trade policy (assuming you are a law abiding trader).

During this process you will have been asked if you were looking for a Combined Policy or Road Risk Only policy. Many traders find themselves unsure of the difference so here we try to clear that up and enable you to make educated decisions with regards to your policy.

Road Risk Insurance

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Road Risk Insurance is designed for the smaller trader. In many cases, it will be motor traders who are just starting out, working from home or typically only operate as a small business. Of the 2 insurances, it is usually the cheaper.

The policy is broken down into three areas very similar to that of Car Insurance.

Road Risk Third Party

This is the most basic of cover and the minimum requirement you will need to trade. The scope of this cover is purely to cover the third party where an accident is your fault. IE, you accidentally drive into another car whilst delivering a car you are about to sell, the persons car you hit will be covered but the car you were in will not be. It covers YOUR liability but NOT your stuff.

Road Risk Third Party Fire & Theft

This policy area covers the same as Third Party Only but will also cover your vehicles in the event of them going up in flames or being stolen.

Road Risk Comprehensive

This is the most full proof of the road risk insurance category. This policy will also cover your vehicle even when you are at fault. It is the common choice for traders who work full time from their home premises. You can also add ‘bolt-ons’ to this policy such as employers liability and public liability.

If you will be doing a lot of driving and don’t require the cover of a premises, then we would suggest you consider this the best cover option.

Combined Insurance

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Combined Motor Trade Insurance is a much more complex policy and is designed towards those with larger businesses and requiring to insure a premises.

A combined option is more likely to cover aspects like:

  • The building you operate from (assuming this is not your home or insured by the landlord if rented)
  • Stock of Vehicles
  • Tools (fixed and portable)
  • Business Interuptions
  • Plant Equipment
  • improvements to a building not insurance by a landlord when renting
  • Money kept on site.

Which Insurance is right for me?

To work this out, you need to look at your trade activity. If you are working part time or selling cars from your home, then it is likely that a road risk policy will be just fine. If you operate away from your home selling cars or maybe run a repair centre, then a combined policy is the likely option for you.

Our advisors are always on hand to help. Simply give us a call on 0203 876 5050.