Plan Insurance Blog

Road Risk insurance – answers to common questions

Useful Answers to Common Queries on Road Risk Insurance Policies

At Plan we are a specialist broker of commercial motor insurance policies. We excel at providing intelligent insurance solutions to professional road based businesses. Businesses operating on a relatively small scale in the motor trade, normally from the proposer’s home as opposed to a commercial motor trade premises, require what is referred to by insurers as a road risk insurance policy.
Many of our clients are involved in the motor trade industry and we will have arranged for them a road risk policy with cover tailored to meet their specific needs. The contract is called a road risk only insurance policy as cover is only provided for driving of vehicles on the road for motor trade purposes. Where as a motor trade combined insurance policy which we’d recommend car showrooms, repair garages and MOT stations should have in place, can provide protection against numerous additional risks such as; motor trade liabilities, theft of tools, vehicles at trade premises etc.
Using our experience of arranging high quality motor trade insurance policies for over 25 years we have provided the below answers to proposer’s most common questions about road risk insurance. We are confident this information will prove of use but please do not hesitate to get in touch should you wish to further clarify any point or visit this page if you require further details regarding the possible cover extensions on a road risk policy.

How many vehicles can I have on my road risk policy?

There is no limit to the number of vehicles you can have on your policy. However, you must be mindful that if you trade from home with space for 4 cars, and you have 15 on your policy, the insurers will ask questions such as ‘Where do you store your vehicles?’ or ‘Do you have a trading address we aren’t aware of?’
Can I drive family and friends vehicles?
You are covered to drive any vehicle in your ownership or your custody or control for motor trade purposes. For example, if you are a mechanic and you are driving your brother’s vehicle for testing purposes whilst resolving a fault, you will be covered. If you are driving it to the beach for the day, then you will not.
What is a vehicle indemnity on a road risks insurance policy?
A vehicle indemnity is the maximum amount the insurers will pay out on a claim for a vehicle in your custody or control. You need to set your indemnity limit at a value that you think will cover the maximum value of any vehicle you will need cover for. This figure does not relate to the amount the insurers will pay out on third party damage.

How many drivers can I have on my road risk policy?

Depending on the insurer you can have up to 5 drivers in total on a road risk policy. We don’t offer an any driver policy for road risk.
How can I add my vehicles to the MID?
Depending on which insurance company we place you with the updates are either done via our online MID Update Form or directly on your insurer’s website. You will receive login details for this once your policy is set up. Updates can also be done via e-mail to us. We try to avoid updates over the telephone as mistakes are more likely to occur and accuracy is vital. You can check if your own vehicle is showing on the MID via this online MID search tool.
Are my vehicles covered at a motor trade business premises?
A standard policy only covers vehicles Third Party Only at a business premises away from the home address. We do have a road risk product that can provide stock cover at a premises as long as certain criteria can be met. The only other way to have vehicles covered at a premises would be to have a full Combined Motor Trade Insurance Policy.
How long does it take for vehicles to show as insured?
It should take no longer than 24-48 hours for vehicles to show on the MID. From the date a vehicle is purchased you are covered for up to 14 days without the vehicle showing on the MID. To allow for the prompt resolution of any potential issues we suggest it is best to try and carry your insurance documents with you whilst driving.

Is there a limit to the time of day or mileage use on a road risk policy?

There is no limit to the time of day you’re able to drive, and there is also no limit to the mileage use. There are situations where the purpose of a journey may be questioned, for example an employee who is listed for motor trade use only wouldn’t need to be driving a customer’s vehicle at 11pm.
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