What does courier insurance cover?
Courier insurance covers vehicles that carry goods, making multiple deliveries to different locations. Whether you are self-employed, working for a courier brand (such as Hermes, DHL and Amazon), or own a courier business, you’ll need the right level of insurance cover.
Courier van insurance is essential. It is needed to protect you and your vehicle in case of accidents while making pick-ups and deliveries. Even a minor bump can cost you financially.
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Who needs courier insurance?
All couriers must have courier insurance by law. You are legally required to have appropriate cover against the risks you pose to other road users, their vehicles and property while working as a courier in the UK.
Running a courier service involves a unique set of risks, and that’s why a specialist business courier insurance policy is needed. Couriers spend all or most of the working day on the road, stopping and starting frequently, visiting many premises, delivering against the clock. That puts you at a higher risk of accidents than other drivers.
What is included in courier insurance?
Courier insurance is mainly for businesses with up to five vehicles. Standard courier insurance covers the courier driver, vehicle and some of the cargo.
Courier insurance offers the same three levels of protection as standard motor cover:
- Third-party only (TPO)
- This is the minimum required by law and covers all third-party liabilities should an accident occur. This does not cover damage to your vehicle when an accident is your fault.
- Third-party, fire and theft (TPFT)
- The next step up provides the same protection as TPO but includes fire and theft cover. This tends to be slightly more expensive than the previous protection.
- This is the highest level of cover you can get and is the most popular. It has all the above protection but includes any accidental damage caused to your vehicle.
Different types of courier insurance include:
- Fleet insurance
- This cover is likely to be more cost-effective if you run six or more vehicles, because it enables you to protect them all with a single policy.
- Goods in transit insurance
- Goods in Transit insurance is essential in case of loss, damage or theft of goods or cargo. Many local authorities or businesses insist upon this cover before you work as a courier for them. ChoiceQuote can cover up to £50,000 of goods in transit on a single vehicle. Goods in transit cover is also available for courier fleets.
- Public liability insurance
- Self-employed couriers are also wise to consider Public Liability Insurance. This offers essential protection in case of claims resulting from accidents involving members of the public – always a possibility when spending so much time on the road.
What does courier insurance cost?
A courier van policy typically starts at £86.33 per month*.
The cost of goods in transit insurance depends on the level of cover you require. Minimum cover typically costs around £200 a year* – a small price to pay for the level of protection provided.
*prices include insurance premium tax (IPT) and are correct as of January 2021.
Courier insurance quotes vary as widely as the kinds of business they cover. The policy we find for you will depend on many factors, including:
- the number and type of vehicles requiring insurance
- the age of the driver(s)
- the distances and locations covered.
While we want to keep your premiums down – helping you to maximise your earnings – we also want to ensure that you have the right protection. There is no benefit in having the cheapest insurance if it doesn’t cover you when you need it most.
All the more reason, then, to speak to our experts first.
Who can get courier insurance?
You can get a courier insurance policy if you meet the following criteria:
- You are aged between 25 and 75
- You hold a full driving licence
- You are a permanent UK resident
In some cases, we can provide cover for drivers with motoring convictions, claims and accidents, so it is always worth asking us for a courier insurance quote.
Get your courier insurance quote
Every courier business is different, which is why we recommend getting in touch with our experts and letting them tailor a policy quote and package to your business.
Working with carefully selected major insurers, we compare courier insurance policies to find the right policy for you. This includes making sure you are fully covered and not paying more than you need to.
Frequently Asked Questions
What can I transport under courier insurance?At ChoiceQuote, we understand that couriers carry a wide range of items. Courier insurance covers vehicles carrying delivering parcels, packages, newspapers, or other goods to multiple drop-off locations. Hazardous materials can be covered as part of a fleet of courier vehicles. Get in touch for more information, or to discuss your courier requirements.
I use my own car, can’t I just use my motor insurance instead of courier insurance?Courier insurance is still necessary if you use your personal car to deliver parcels. Your private car, motorbike or van insurance will not protect your work as a courier, even if the policy covers Class 1 Business use.
Am I eligible for courier insurance?Yes, if you are between 25 and 75 years of age, hold a full driving licence and are a permanent UK resident. In some cases, we can provide cover for drivers with motoring convictions, claims and accidents, so it is always worth asking us for a courier insurance quote.
Can I insure my own van for business use?No, you can't insure your van for business use to be a courier – you need specialist courier insurance for your van to be covered. Adding business use to a van policy, or taking out a commercial van insurance policy, is not enough to cover you for courier work. Without courier insurance, your van will not be insured if there is an incident or accident.
How do I get cheap courier insurance?Here are some tips for reducing your courier insurance cost:
- Take out the right level of cover to meet your needs. Third-party only insurance may be fine for an older vehicle, but it could cost you more in the event of an accident. Comprehensive insurance often doesn’t cost a lot more, so could save you money.
- Opt for a higher excess if you can afford it. Weigh up the amount you save on your premium against the increased cost to you if a claim needs to be made. You can also get Excess Protection Insurance at a small cost – ask us for more details.
- Don’t overestimate your mileage. Estimating you will cover more miles than you do might protect you, but it’s also likely to cost you more. Be realistic and truthful – estimate based on a typical working week for you.
- Spread the cost with instalments. Different finance options can help you budget easily, so while the policy may cost a little more overall, you don’t have to pay it all at once.
What is a courier fleet policy?Courier fleet policies allow 3 or more vehicles to be insured on one policy. Instead of a policy for each vehicle, you can ensure as many vehicles as you need for courier use. The advantages of this include:
- The ability to add several vehicles and drivers to one policy
- A single renewal date and point of contact to manage your policy
- Different vehicle types can be added (though the majority will need to be vans for most insurers)
- The ability to manage your fleet on the road with telematics software, reducing the chance of claims and the time taken for claims to be processed
- Overall savings – the more vehicles you add, and the lower the number of claims, the greater the potential savings
Do I need courier insurance and goods in transit insurance?Goods in transit cover protects the items you are carrying between the point they are picked up and the point they are delivered. Without it, you will be liable for damage, loss or theft of goods you are transporting. That is why many businesses and local authorities insist on goods in transit cover for couriers they use. Conditions of carriage will typically make you liable for some or all of the cost of damage, loss or theft of goods. Goods in transit insurance can be arranged with limits of indemnity to suit your needs.Courier insurance protects you and your vehicle, with limited cover (if any) for cargo.
Can I combine courier insurance with goods in transit cover?Some insurance policies used to provide cover for your van and goods in transit under one policy. However, this option is no longer available - courier insurance and goods in transit insurance are bought separately. You can still save money by taking out cover through a broker that helps you get the right level of cover for both your van and the goods you are carrying – just call us if you need help.
Can I use my courier van for other work, such as transporting furniture?A courier insurance policy will specify what you are covered for. Typically, this will include carriage of parcels, packages, and newspapers, for example. It will not include transporting furniture. This is a specialist commercial use of a van, and will need separate cover.
What is the benefit of using an insurance broker for courier van insurance?
- Your broker treats you as an individual, finding out exactly what insurance you require. They are authorised and legally obliged to offer you suitable products, so you only pay for what you need.
- Brokers are often not tied to an individual insurer. They can search their panel of insurers to find the best deal they can for your individual circumstances.
- Access to more insurers can increase your chance of getting a single vehicle courier van or courier fleet policy, using a range of providers.
- Finance can often be arranged to help spread the cost of your insurance.
- A broker is available to discuss any issues you have, including additional cover needed or insurance claims.