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Courier Insurance: The Definitive Guide
So, to save you time (and our breath!) we’ve put together this definitive guide to courier cover. In it we’ll provide answers to all the frequently asked, and not-so-frequently asked, questions about parcel delivery insurance.
We hope this guide will prove useful, but if you’d like some personalised advice or a courier insurance quote, then please get in touch. You can call us on 01782 308372, contact us, or start your courier insurance quote here. Whichever way you choose, our 4.9 Google-rated team will be happy to help you get the right cover at the right price.
Q. What is courier insurance?
Courier insurance protects businesses and individuals who deliver goods for money. It’s a specialist form of commercial vehicle cover that all delivery drivers, be they full-time or part-time, must have. If you’re delivering goods for money using a van, car, or a motorbike then the law states that you must have courier insurance in place.
Q. How can I get cheaper courier insurance?
Probably the easiest way to get cheaper courier insurance is to use an independent broker that specialises in delivery driver insurance. A specialist independent broker such as JMG Sandbach can save you time finding cheaper quotes. Thanks to our network of insurer partners, we can even find cover for younger or new drivers and for those who’ve had problems finding affordable protection owing to the areas in which they operate. Other ways of getting cheaper insurance quotes include:
- Increase your policy excess: If you’re a careful driver and have a good claims record, then raising your excess – the amount you pay in the event of a claim – is a simple way to save. Over the past couple of years, we’ve seen more and more experienced drivers opt for a higher excess with savings of as much as 10%
- Build up your no-claims bonus (NCB): Avoid making small claims, something a higher excess will help with, and you’ll see your costs fall over time
- Get a fleet Insurance quote: If your delivery business has three or more vehicles – be they vans, cars, motorbikes, or a mixture of all three, you can get courier fleet insurance. Courier fleet insurance can not only reduce the cost of per vehicle cover, but can save you administration time and gives you the flexibility to add and remove drivers as you need to
- Get a named driver rather than any driver policy: Any driver policies give you flexibility, but they come at a cost. If you’re the only person driving your vehicle for commercial reasons, then getting a named driver policy could save you money as it reduces the level of risk in the eyes of an insurer
- Be careful about which vehicle you choose: While you need to be practical and have enough space to carry your loads, smaller, less powerful, or less desirable vehicles are cheaper to insure. Premiums for vans like a Ford Transit Connect will generally be cheaper than something more prestigious, like a Mercedes Sprinter, for example
- Fit a telematics system: Fitting a telematics system – a computerised vehicle tracker – can help reduce cover costs. Insurers like them as they provide detailed data on your driving habits and can make it easier to recover your vehicle if it’s stolen. We’ve seen customers’ renewal rates come down by as much as 50% after they’ve had a black box fitted, and this can allow younger drivers to get affordable cover
- Secure your vehicle(s): Simple security measures, such as parking your van somewhere securely overnight and not leaving goods onboard, can help reduce premiums. Fitting of dashcams, interior CCTV, and extra locks can also help
- Pay annually: Many insurers will offer you a premium discount if you pay annually rather than monthly, so make sure you ask about this when you take out your policy. Monthly payments also usually incur interest, which will add to the cost of cover
- Invest in driver training: 90% of all traffic accidents are down to driver error, and nothing will push up cover costs like a claim. By investing in driver training, you can cut the risk of an accident, cut the cost of your courier insurance policy, reduce the chances of being sued for damages and keep your vehicle where it belongs, on the road and delivering goods. A recent Department of Transport report on driver training has suggested that if drivers had better hazard perception training, it could lead to an 11% reduction in collisions, and fewer collisions can mean fewer claims and lower premiums
- Check the small print: Make sure you know what you’re buying. Some policies come with things such as the carriage of dangerous goods or European cover. If you don’t carry these types of goods or deliver them abroad, why pay for it? This is another reason why it pays to use an independent broker who can compare providers to find you the cover you need
You can find out more about getting cheap courier insurance by reading our guide here.
Q. Is courier insurance a legal requirement in the UK?
Yes, it is. If you do deliveries for money you need to have ‘hire and reward’ cover in place. Insurers see delivery drivers as being at greater risk and in need of the extra protection that courier insurance brings. Pressure, frequent stops, and driving on inner city and rural roads, all increase the chances of an incident which is why you need specialist protection.
If you work as a delivery driver, even if it’s every now and again or as a so-called ‘lifestyle courier’ working in the gig economy, you’ll need courier cover. If you don’t have it and do deliveries on your standard car or van insurance, then you’ll be breaking the law as you’ll be invalidating your policy. Driving without insurance is a serious offence. If the police stop you, you can receive a £300 fixed penalty and 6 points on your licence. If the case goes to court, the fine can be unlimited, and you could also be banned from driving. The police can even seize or destroy your vehicle. So, if you’re going to do deliveries, get delivery driver insurance.
Q. How is courier insurance different from van insurance?
It’s essentially the same, the big difference being that courier van insurance will cover you for making deliveries for money. If you have a van and do any deliveries or other paid work such as carrying a friend’s band’s equipment to a gig, you’ll need courier insurance. You can get temporary courier van insurance and that will cover odd jobs like these, but you must have some form of van courier insurance in place of you’re doing hire and reward work.
Q. Are there different levels of cover?
Yes, just like car insurance you can choose from:
- Third-party: The minimum legal requirement to drive your vehicle on the road. This will ensure that you are covered should you damage someone else’s vehicle if the accident is your fault
- Third-party, fire, and theft: This will ensure that you are covered should you damage someone else’s vehicle if the accident is your fault or if one or more of your vehicles is accidentally damaged by someone else, destroyed by fire or stolen
- Fully comprehensive: Provides the same cover as third-party, fire, and theft, but if an incident is your fault, then repairs to your vehicle will also be covered.
Q. What does courier insurance cover?
It covers your vehicle and makes it legal for you to go about your business. It doesn’t automatically cover your cargo, for that you’ll need goods in transit insurance.
Q. Are there any other policies that delivery drivers should consider?
Yes, there are several, the most common ones being:
- Goods in transit insurance: Most couriers take this out. It protects their cargo while it’s being loaded and unloaded, moved or stored overnight from accidental loss, theft or damage. Cargo theft costs UK companies over £72 million per year according to the latest figures from the National Vehicle Crime Intelligence Service (NaVCIS) so having goods in transit cover makes a lot of sense
- Public liability insurance for couriers: Protects delivery drivers should they accidentally damage someone’s property or injure someone while working. Given the time pressure couriers are under and the number of miles they do, incidents are common, and this is why so many drivers and courier firms add public liability insurance to their policy
- Breakdown insurance: When you’re a courier your vehicle is your business. If it breaks down, you need to get it going ASAP. Courier breakdown insurance can help you get back on the road quicker
- Courtesy van: If you do breakdown, it’s good to know that your insurer will cover the costs of hiring a van until yours is road-ready again
- Personal belongings cover: Being in and out of your vehicle can leave you vulnerable to theft of your belongings. With personal belongings insurance in place, you’ll be covered up to the policy’s limit, often around £500
- Legal expenses cover: Will help with the costs of defending a case should someone bring legal action against you/your business
- Protected no claims: Stops you from losing your no-claims bonus should you need to make a claim
- Personal injury insurance: Health and Safety Executive figures show that each year there are around 2,000 serious injuries and 70 fatalities involving couriers each year. If you were involved in an accident and have personal injury insurance in place, then you can make a claim and give yourself the cash you need while you’re unable to work
- Employers’ liability insurance: If your business employs people, this covers any illness or injury they may experience while working for you. If you have anybody working for you, be they full-time, part-time, or contracted, then having employers’ liability cover is a legal requirement. Failure to have a policy in place can lead to a £2,500 fine for each day you are without it. Even if the people working for you are volunteers, it’s still recommended that you have employers’ liability insurance in place as organisations have a duty of care to anyone working for them regardless of whether they are paid or not.
In law, the health and safety of your employees are essential, which is why you are legally required to protect your business from incidents such as:
- Someone having an accident at work
- A member of staff developing a medical condition through their work
- One of your team members had their property damaged at work
Legally speaking, your policy must:
- Cover you for at least £5 million of liability
- Be through an authorised insurer
Q. How much goods in transit insurance do I need?
You need enough to cover a typical load. Some customers may also insist on you having an amount of cover in place. Our customers typically have policy limits of between £10,000 and £50,000, though we can help you find higher limits if needs be.
Q. How much does delivery driver insurance cost?
That will depend on a range of things like the age of the driver(s), the value of the vehicle(s), where you’re working, etc. The main factors influencing courier and van courier insurance premiums include:
- The size of your business
- If you have any employees
- The type and size of your van(s)
- The value of your vehicle(s)
- The age of your driver(s)
- The level of excess you’re prepared to pay
- Your postcode/the postcodes you are working in
- The kinds of goods you are carrying – hazardous, high-value, or high-risk cargoes may cost more to insure
- If you want to include courier public liability insurance
- If you want to have goods in transit insurance, and if so, how much
- Your claims history
- The level of no claims bonus you have earned
- Whether you wish to pay monthly or annually, annually will usually work out cheaper
- The number of vehicles you have – if you have 3 or more, then you should consider courier fleet insurance
Q. Why have courier insurance quotes gone up?
Courier insurance quotes have risen by over 50% on average since 2020 in the UK. A combination of inflation, increased repair costs, a shortage of parts pushing up the costs of providing courtesy vehicles, and insurers becoming warier of offering courier van insurance has made life difficult for drivers and business owners alike. Several surveys have shown that premiums are now coming down and the fall should continue in 2025 and 2026.
Q. Can I use my personal vehicle for courier work with regular insurance?
No. We get asked this a lot, especially by part-time so-called ‘lifestyle couriers’ and the fact is that making deliveries without a hire and reward element to your policy is illegal. If the police stop you, you can receive a £300 fixed penalty and 6 points on your licence.
Q. Can I get a cover for an electric vehicle?
Yes. While there were only around 55,000 electric vans on our roads at the end of 2024, just 1.7% of the total fleet, insurers are becoming more comfortable insuring them. It’s likely that they will cost more to insure as there are relatively few garages that can do the work and parts can be expensive. Being uncommon and using new technology has made insurers nervous, but as more come onto our roads and insurers see how they fare as they age, we should see premiums come into line with those of diesel and petrol vehicles.
Q. What’s the difference between hire and reward insurance and courier insurance?
Courier insurance is a form of hire and reward insurance. The difference is that courier insurance considers the work a delivery driver does, e.g. frequent stops, time-pressured deliveries, working in congested areas, etc.
Q. Is courier insurance required for food delivery like Uber Eats or Deliveroo?
You’ll need hire and reward cover, so yes, a courier policy will cover you. Most food delivery drivers use either their cars or motorbikes so a specialist food delivery policy will work out cheaper and more relevant to their needs.
Q. Can I get temporary courier insurance?
Yes, some insurers will offer cover for a day, others for weeks or even months.
Q. What is fleet courier insurance and what are its advantages?
Courier fleet insurance allows you to insure multiple vehicles on a single policy. If you have three or more business vehicles, be they cars, motorbikes or vans, you can get a courier fleet insurance quote. The advantages of fleet insurance include:
- Save money: Fleet insurance usually works out cheaper than insuring vehicles separately
- Save time: Having one policy to administer means a fleet policy can save you administration time, especially when it comes to making a claim
- Greater flexibility: You can add or remove vehicles and drivers as you need to. You can also get cover for all drivers to drive any of your vehicles if you take out an any-driver policy
- Get cover for hard-to-cover drivers: Younger drivers and those with points or spent disqualifications can be hard to get cover for, as can ones with chequered claims histories. With an any-driver fleet policy, you can cover them more easily and more cheaply
- Tailored cover: We can tailor your policy to your business’s needs
If you’d like some independent advice on getting courier fleet insurance, please call us on 01782 308372 and we’ll be happy to help.
Q. Can I get courier insurance for part-time work?
Yes. There are an estimated 30,000 part-time couriers working in the UK’s gig economy. Some of these work regularly throughout the year while others, such as students, will take on work in the holidays. Many insurers now offer temporary or part-time cover.
Q. Do I need courier insurance if I’m employed as a delivery driver?
That depends on the company and how they classify their drivers. DPD provides insurance, but as an Amazon Flex Driver, you will have to take out your own delivery driver insurance.
Q. Does the type of vehicle affect courier insurance quotes?
Yes. Insurers will consider everything from the size and weight of the vehicle to the make and model. As we said above, a more desirable vehicle such as a Mercedes Benz Sprinter or VW Transporter will cost more to insure, not least as they tend to be more expensive to repair.
Q. Do I need special insurance if I transport high-value goods?
Yes, and there are some cargoes that insurers won’t cover. Restricted items include fine art, perishable goods, livestock, human organs, hazardous/unstable goods such as chemicals, and some won’t cover furniture. Thanks to our having a wide range of insurer contacts we can find cover for even these difficult loads. If you’d like some independent advice, please call us on 01782 308372 and we’ll be happy to help.
Q. Will my personal no-claims bonus transfer to a courier policy?
No, your no-claims bonus earned on your car or van can’t be transferred to a courier policy. Many of the insurers we deal with will offer a discount on a courier policy based on your existing no-claims history.
Q. Does courier insurance include European cover?
Yes, it can. While most couriers stick to UK routes, some need European cover, and we can offer it. If you do European runs, you will need CMR insurance, also known as International Carriage of Goods by Road insurance. This protects goods being transported internationally by road. It’s named after the CMR Convention, an international agreement that outlines the responsibilities of parties involved in road transport. CMR insurance ensures carriers are legally able to transport goods within the countries that have ratified the CMR Convention, mainly in Europe.
Q. How old do I need to be to get courier insurance?
If you’re over 17 and hold a full driving licence you are legally allowed to work as a delivery driver. That said, some insurers won’t cover drivers aged under 21 and some will even insist on drivers being over 25. If you have three or more vehicles, then you can get courier fleet insurance which makes insuring younger drivers much easier.
Q. Can van courier insurance cover leased vehicles?
Yes. Over half of all the UK’s courier vans are leased according to the Society of Motor Manufacturers and Traders (SMMT). Most leasing agreements require comprehensive courier insurance, and drivers must have a policy that covers both the vehicle and the goods being transported, i.e. it includes goods in transit insurance.
Q. Can I insure a lorry or HGV on a courier policy?
No, for vehicles over 3.5 tonnes, such as lorries, you’ll need truck or HGV insurance.
Q. How can I get a courier insurance quote?
You can call us on 01782 308372, contact us, or start your courier insurance quote here. Whichever method you choose, our 4.9 Google-rated team will be happy to help you get the right cover at the right price.
About The Authors
Courier Insurance: The Definitive Guide was written by the Courier Insurance team, who are part of the JMG Group. Collectively, the team have over 50 years of courier insurance experience and is trusted by thousands of drivers and courier businesses who look to them to provide excellent cover backed by outstanding service.