Delivery and Courier Insurance

Delivery or courier insurance is also known as ‘hire and reward’ or ‘carriage of goods for hire or reward’ cover and is designed for people who make regular deliveries in a relatively small area.

Perhaps you deliver fast food to people’s homes for Deliveroo or Uber Eats, carry parcels on behalf of Evri, or pick up Amazon shopping deliveries in your spare time. If you use your own car or van to complete jobs like this, you’ll need to have specialist insurance cover.

It’s worth keeping in mind that courier insurance is different to hauliers’ insurance. Hauliers’ insurance is intended for drivers who use their vehicles to complete long trips with just one or two deliveries rather than making several in one town.

Your delivery and courier insurance policy will depend on the provider you choose. It may be possible to take out a specific policy to cover your delivery work or purchase this cover as a package alongside standard car or van insurance.

With Autedia, you can compare quotes from over 110 providers to find the cheapest option for your circumstances.

Yes, it’s a legal requirement to have delivery or courier insurance if you’re being paid to transport items that don’t belong to you.

Without specialist insurance, you won’t be covered if your car or van is damaged, or you’re involved in an accident and damage another vehicle when you’re out and about making deliveries.

Goods in transit insurance isn’t legally required but might be a good addition to your delivery or courier policy, especially if you keep goods in your vehicle overnight or during your lunch break

There are three different levels of standard courier insurance to choose from:

• Comprehensive

Fully comprehensive insurance is the highest level of cover you can have and will protect you and your vehicle in an accident, even if you were at fault. You’ll also be covered if there’s a fire, flood, or your vehicle is stolen.

• Third Party, Fire and Theft

With third party, fire, and theft insurance, you’ll be covered if you cause damage to another person and their vehicle in an accident. You’ll also be eligible to claim if your vehicle is stolen or damaged by fire.

• Third Party

Third party is the minimum level of insurance you can have to drive on UK roads and covers any damage you cause to someone else and their vehicle in an accident.

The exact level of cover will depend on the courier insurance policy you’ve selected, and extra add-ons are often available, but you may benefit from:

• Public Liability

This cover protects your business from claims made by members of the public who may have been injured in an accident with your vehicle.

• Employer’s Liability

If you manage a team of couriers or delivery drivers, employer liability insurance provides cover if one of your employees is injured on the job.

• Courtesy vehicle

Some policies will offer a courtesy car or van while yours is out-of-action or being repaired.

• Windscreen cover

Windscreen cover allows you to claim on insurance if your windscreen is damaged and needs to be repaired or replaced.

Goods in transit cover is an additional type of insurance policy that you may wish to buy on top of your car or van insurance.

It covers the value of the goods you’re carrying, which could come in handy if these items are damaged in an accident or stolen from your vehicle.

The cost of this added extra will depend on your individual circumstances and the value of the goods transported, but be aware that it won’t usually cover items that have been damaged while improperly packaged.

Courier insurance can be more expensive than standard policies or social use van insurance as the insurer needs to consider the risks associated with making deliveries. You will likely be doing multiple deliveries in a small, built-up area while carrying potentially valuable goods that don’t belong to you.

That doesn’t mean you can’t find cheap courier insurance – with Autedia, you can compare quotes from over 110 providers – but the average annual cost of this type of insurance according to Go Compare is £1,137.

Other factors that can affect the cost of your delivery insurance premium include:

• Your age – older drivers typically pay less than young or newly qualified drivers
• The hours you’re working – deliveries at night may come with more risk of accidents
• Where you work – different areas have different levels of crime
• Type of vehicle – a small used vehicle may be cheaper to insure than a new van
• Whether or not you carry cash
• Your claims history – you might get a discount if you’ve been a safe driver in the past