Frequently Asked Questions
Do I need this cover?
If you are carrying goods with the intention of delivering them, then you will need courier insurance. Anyone driving on a public road in the UK requires standard motor insurance, but if you are operating a courier service, a normal car policy is inadequate.
The term you’re most likely to come across when looking this type of cover is ‘carrying goods for hire or reward’.
Some people can mix up courier insurance with haulage insurance, but there are differences and if the service you run involves multiple drops in a single day, courier cover is best suited to your needs.
You can obtain cover for all types of courier services including sole proprietors, courier business partnerships, charities and other other organisations.
What kind of policies are available?
Much like normal car insurance, courier cover falls into the three main types of cover – third party only, third party fire and theft and comprehensive.
No matter what type of cover you choose, you will have to pay an excess, which is the amount of money you pay towards any claim for which you are responsible for. This also applies if you are involved in an accident which is your fault.
Excesses on courier insurance policies can be as much as £500. Although, you may able to reduce it to below £250. However, the lower the excess you take out, the higher your premium.
Due to the nature of the service courier companies provide, it is also a good idea to take out goods in transit cover as part of your policy.
Who should I take out cover with?
You can compare a huge range of online quotes thanks to our dedicated quote service. It’s quick and easy to understand and we’ll provide you with a range of great deals, all tailored to suit your need.
We can help find you the cheapest deals out there, but remember, cutting corners over price may leave you with a poor standard of cover, so make sure you get the balance right.
Isn’t courier insurance just like haulage insurance?
There are key difference between the two, although both will require that you use the vehicle for the ‘carriage of goods for hire and reward’.
However, the nature of both business can vary greatly. A courier service is much more diverse and can be delivering any number of different types of goods on any given day. They advertise their services and draw in a range of different customers from day to day.
Potential customers can contact courier companies at any time to avail of their services.
Haulage companies normally deal with the same customers on a regular basis with whom they have contracts with. They will know exactly who they are dealing with from week to week and customers will often have regular appointments for delivery and collection.
This means that the haulage companies will know exactly what goods they are handling, whereas a courier company could be delivery all kinds of things at a moment’s notice.
Therefore, both will require different kinds of cover.
Also, the type of vehicles with are used are often very different. Couriers will use cars, small vans or even motorbikes whereas haulage companies are more likely to use Heavy Goods Vehicles (HGVs). Again, different vehicles will require different types of cover.
There are similarities, however, between the two types of cover.
Both kinds will offer goods in transit cover, which will protect the items while they are being transported, and public liability cover.
How many drivers can I have on my policy?
There are no real restrictions on the number of drivers you have on a policy, but most insurers will place conditions on who can drive. The cost of your policy could be affected by the age and claims history of your named drivers.
There are a number of different options when it comes to drivers on your policy. The most common kinds of cover are for ‘insured only’ or ‘named drivers’. The more drivers you have a on a policy, the greater the cost. You also have the option of ‘any driver’ cover.
Some policies may not provide cover for drivers below a certain age, or those with previous driving convictions.
You can benefit from a no claims bonus on your policy, with discounts of up to 65% available.
Some providers may also take into account your no claims history on a private car or van policy.
What types of vehicle can I use as a courier?
Most courier firms will use a small or mid-size diesel van, due to its reliability and fuel economy. You can also take out cover for small lorries, but anything over 3.5 tonnes may require haulage cover.
Whatever vehicle you are driving, it is also advisable to take out goods in transit insurance as this will protect the goods you are transporting against damage, destruction or theft.