How To Save On Courier Insurance

Tip 1:  Shop around – not all insurance brokers have access to the same wholesalers and insurers and so may not be able to offer you the best value policies.  We’ve seen drivers being offered quotes that are double the previous year’s simply because the insurer in question doesn’t really want the business.  So, if you want to save, shop around.

Tip 2:  Use an independent broker that specialises in courier and van courier insurance – if your broker is tied to one insurer or you go direct, then they can only offer you what they have rather than being able to compare the market.  If you use an independent broker that specialises in insurance for couriers, especially one that has its own underwriting facility, as we do, you can potentially save a small fortune, as we can offer the best the market has to offer.

Tip 3: Cut out policy extensions and extras you don’t need – many of the shelf policies will come with extras that you may not want or need.  Breakdown cover, public liability insurance for couriers, windscreen or radio cover are all good to have, but if you’re looking to cut costs, dropping these can be an easy way to do it.

Tip 4: Build up your no-claims discount – nothing will push up your premiums like a claim, so only make one if you must.  If you’re new to the industry, you may be able to transfer your existing no-claims bonus from your car or van insurance.  Talk to your broker, but if the bonus was earned in the UK, then you should be able to transfer it.

Tip 5: Raise your excess – this is probably the easiest way to cut your courier insurance costs.  We’ve seen clients save between 10% and 15% on their premiums just by raising their voluntary excess, the amount they pay in the event of a claim.  As a bonus, raising your excess is also likely to reduce your chances of making small claims.

Tip 6: Choose a cheaper to insure vehicle – while you need to be practical and have enough space to carry your load, smaller, less powerful, or more common 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.

Tip 7: Choose a named rather than any-driver policy – any driver policies are convenient, but they will cost you more.  A named driver policy is ideal if only you, or a few other people, can drive it, especially if those who are named on the policy have good claims histories and clean driving licences.

Tip 8: Limit the routes you’ll work – if you only work in a certain city, region, or set of postcodes, then tell your insurer as that could bring down your costs.  Many policies offer nationwide coverage, which is useful, but often costs more.

Tip 9: Get a courier fleet insurance policy – if you have three or more business vehicles in need of cover, be they cars, vans, or trucks, then you can get courier fleet insurance.  Courier fleet insurance can save you money as you’re effectively buying in bulk, can save you time when it comes to things like policy administration, and it allows you to add drivers and vehicles as your business grows.

Tip 10: Secure your van – thefts of vans are rising in the UK.  Since 2020, thefts have risen by over 25% according to the RAC, and around 30 vans are stolen each day.  Thefts from vans have also been rising, which is one of the reasons why so many insurers have pulled out of the UK delivery insurance market.  Adding extra locks, dashcams, interior cameras, parking securely and off the road at night and at weekends can all help bring the costs of your courier van insurance down.

Tip 11:  Start your renewal search early – letting your policy auto-renew or talking to your broker the day before it’s due isn’t going to help you get lower insurance quotes.  We know you’re busy, but get in touch with your broker at least 30 days before it’s due, and they’ll have the time to shop around and find you the best deal.

Tip 12: Fit a telematics system or a black box tracker – telematics systems and black box trackers have become popular in recent years.  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.

Tip 13:  Pay annually – paying monthly is good for cash flow, but paying annually will work out cheaper as you won’t be charged interest on your payments.

Tip 14: Consider third-party or third-party fire and theft cover – like car insurance, courier van insurance comes with three levels of cover: fully comprehensive, third-party fire and theft, and third-party.  Reducing the level of cover will bring down the costs significantly, though you will run a risk in the event of an accident that’s your fault.

Tip 15: Take some extra driving courses – the Department of Transport’s figures show that extra driver training can reduce accidents and claims by 11%.  Driver training courses from organisations such as the Royal Society for the Prevention of Accidents (RoSPA) play well with insurers.  Reducing accidents and other incidents will not only help you get cheaper cover but will also help keep your van where it belongs, earning you money.