Car Trade Insurance in the UK: Road Risk vs. Combined Cover

If you’re working in the UK car trade, whether buying and selling vehicles, running a dealership, or repairing and servicing cars, having the right Car Trade Insurance is essential. Not only is it a legal requirement, but it also protects your livelihood, your assets, and your reputation.
One of the biggest questions traders face is whether to choose a Road Risk Only Car Trade Insurance policy or a Combined Car Trade Insurance policy. Both offer valuable cover, but they are suited to very different types of businesses. This article will help you understand the differences and decide which policy best matches your needs.

What is Car Trade Insurance?

Car Trade Insurance is specialist cover designed for anyone working with vehicles as part of a business. A standard private motor policy won’t protect you when moving customer vehicles, handling stock cars, or running a forecourt. Without the right policy in place, you could be operating illegally.
Whether you’re a part-time trader selling cars from home, or you own a large garage with employees, Car Trade Insurance ensures that you can work legally, handle vehicles confidently, and protect your business against unexpected costs.

Road Risk Only Car Trade Insurance

A Road Risk Only policy is the most basic and affordable option. It allows you and authorised employees to drive customer vehicles and stock cars on UK roads.
Key benefits of Road Risk Only:

• Keeps premiums affordable for small-scale operations.
• Ensures you are legally compliant when moving cars on public roads.
• Flexible cover that grows with your trading activity.

For many people starting in the car trade, this type of policy is the most practical first step.
Combined Car Trade Insurance
A Combined Car Trade Insurance policy includes all the benefits of Road Risk cover, but with much broader protection. It is designed for established businesses that own or lease premises and hold greater responsibility.
A Combined policy typically includes cover for:

• Business premises: Protection for garages, forecourts, or workshops.
• Stock of vehicles: Cover for cars you hold for sale.
• Tools and equipment: Safeguarding expensive diagnostic machines and specialist tools.
• Public liability and employer’s liability: Cover if a customer or employee suffers injury or damage.
• Business interruption: Financial protection if you are forced to stop trading due to an insured event such as fire or flood.

This type of Car Trade Insurance is most suitable for:

• Car dealerships with a forecourt.
• MOT and testing centres.
• Garages with multiple staff members.
• Vehicle recovery and transportation businesses.

Choosing the Right Car Trade Insurance
The right cover depends on the scale of your operations and the risks you face:

• Go for Road Risk Only if you’re just starting out, trading from home, or handling a small number of cars.
• Choose Combined if you operate from a premises, employ staff, or have a significant investment in tools, stock, or facilities.

It’s also worth noting that many traders start small with Road Risk cover, then upgrade to a Combined policy as their business grows.

The Role of a Specialist Broker

Because no two businesses in the car trade are exactly the same, working with a specialist UK insurance broker can save you time and money. Brokers can compare quotes from leading insurers, explain optional extras, and tailor a policy to your unique situation — ensuring you’re never underinsured or paying for cover you don’t need.
Car Trade Insurance isn’t just a legal requirement — it’s the foundation of a successful trading business.

• Road Risk Car Trade Insurance is perfect for small-scale or part-time traders who need affordable, essential cover.
• Combined Car Trade Insurance is designed for established businesses with larger premises, stock, and staff.

Whichever option you choose, having the right policy in place means you can operate with confidence, protect your investment, and focus on what matters most — keeping your car trade business thriving in the UK’s competitive market.