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Courier Insurance Q&A
As one of the UK’s leading providers of courier insurance and courier van insurance, we keep a close eye on what’s happening in the market. With delivery volumes predicted to grow by a further 5.7% according to a report by CEP-Research, and with Q4 seeing its traditional surge of requests for courier insurance quotes, we asked Client Director Nathan Pedley to give us his view of things. From how to get cheaper courier van insurance to whether delivery drones are the future of deliveries, Nathan’s wealth of knowledge offers a useful guide for delivery drivers and courier business owners.
If you’d like some personalised help or a courier insurance quote, then please get in touch. You can call us on 01782 308372 or contact us, and we’ll get back to you as soon as possible.
Q. Are courier insurance premiums coming down?
A. Nationally, motor insurance costs have fallen by 16% since last year, but we aren’t really seeing a drop in the courier market yet. From experience, they normally increase in the back end of the year, as that’s when you get a lot of part-time or new couriers coming into the market who have little to no experience and normally end up having accidents.
Q. Are you seeing demand for courier insurance quotes rising as more couriers take to the road?
A. Yes, I expect this will accelerate as we go through Q4. We’ll see a lot of requests for temporary courier insurance as seasonal drivers and lifestyle couriers take to the road.
Q. What's the easiest way to get cheap courier insurance cover? Any insider's tips?
A. There are a few ways of getting cheaper quotes. Transferring your NCB (no-claims bonus) from your car is a good idea, especially for new drivers. Keeping the risk to named drivers only and increasing your excess are also easy ways to keep quotes down.
Q. There are reports that the courier market is hardening and cover is becoming harder to get/more expensive. Have you seen this?
A. Yes, this is due to insurers pulling out of the market. Some insurers have become more risk-averse when it comes to delivery drivers. This has had knock-on effects in terms of rising premiums and drivers struggling to find cover. This is another good reason to use an independent broker like us. We can access policies from a range of quality insurers and can find even challenging risks the cover they need.
Q. There's been a lot of talk about electric vehicles. Are you getting requests for EV van insurance, and if so, how does it compare in terms of premiums?
A. We don’t get many, but when we do, we don’t have many markets for them. Being new, insurers are cautious about them. Concerns around things like battery failures, depreciation levels, repair costs, and there being so few on the roads make them tricky to cover. This will change over time, I’m sure.
Q. Does fitting a telematics system really reduce premiums, or is that an urban myth?
A. It’s a myth for single-vehicle markets, but it can help on fleets. With AI and other technologies coming on stream, insurers are moving to data-driven insurance models.
This involves tracking driver behaviour, maintenance alerts and other on-board data that allows insurers to reward safer, more efficient operators with usage-based discounts. It’s not universal yet, but it will be.
Q. Are you seeing more same day/super-fast delivery firms asking for quotes, and are these more expensive?
A. It’s not something the insurers rate when formulating premiums unless they are carrying furniture or something of high value. If this is the case, then they will pay more as a lot of insurers don’t cover furniture removal or certain goods.
Q. Do you think couriers should have courier public liability insurance?
A. Yes, definitely. 99% of our clients have courier public liability insurance with us, and while we don’t see that many claims, nationally, the number of claims is rising.
Q. There's been an emergence of modular insurance products, short-term top-ups for peak season, goods-in-transit add-ons, to match the variable exposure of courier operations - have you seen this?
A. I’ve heard of it, but the insurers we deal with don’t offer it at the moment. That may change. The market as a whole is changing fast.
Q. Are delivery drones the future of deliveries? And will you be able to insure them?
A. Yes, in big cities, I imagine it might take off (pun intended!), but I don’t think we have anyone who offers insurance currently. It’s very early days, but I know from reading our blog on driverless deliveries that it’s an emerging sector. The airborne ones will need some sort of Civil Aviation Authority input on risks and regulations, and the land-based ones will need public liability cover too.
Thank you, Nathan, most informative.
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About The Author
Stephen Ashmore is the Managing Director of JMG Sandbach and a courier insurance specialist with over 25 years of industry experience.