Courier van insurance

Work as a courier? We can help you find great-value van insurance that meets your needs. Let’s take a look.

Work as a courier? We can help you find great-value van insurance that meets your needs. Let’s take a look.

Julie Daniels
Insurance expert
minute read
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Posted 4 JUNE 2021

What is courier van insurance?

Courier van insurance, also called ‘hire and reward’ insurance, is a specialist type of cover that is usually put together as a package. If you make regular deliveries in a relatively small area in return for payment, you’ll need it.

It’s different from hauliers’ insurance, which provides insurance for drivers of larger goods vehicles who make deliveries over longer journeys – typically involving just one or two drop-offs.  

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How does courier van insurance work?

Courier van insurance can vary between providers, so it can be difficult to find one that covers everything in one policy. It’s best to think of courier van insurance as a package of options. Start with a van insurance policy as your base, then choose your add-ons.

Some policies could cover the cost of any goods locked in your van overnight. A comprehensive courier policy might also offer a courtesy van that you can use to get back on the road if your vehicle’s out of action.

Goods in transit

When comparing van insurance for your courier van, look out for goods in transit cover that’s high enough to meet the value of the goods you’re carrying. This won’t normally be included as standard with your van insurance, so you’ll usually need to arrange it as a separate add-on for an extra cost. There may be a maximum cover value for an individual item and an overall cover limit for each cargo load.

Be aware that goods in transit insurance won’t usually offer cover items that were damaged as a result of not being packaged properly. Check your policy’s wording carefully before you buy, in case there are any other exclusions or restrictions.

Do I need courier van insurance?

If you operate or work as part of a courier service, you need to take out courier van insurance. It’s a legal requirement. This can cover your van for business use, insuring it against damages (or damages to another vehicle) while transporting goods.

Goods in transit cover, while not legally required, is highly recommended as an add-on, as this will insure the goods that you’re transporting. If you don’t have this cover, and your van is involved in an accident that leads to the goods being damaged, you’ll probably have to pay the damages yourself.

What level of insurance might I need for my courier van?

Courier van insurance is typically made up of multiple policies. A standard van insurance policy covers the vehicle alone and includes the type of cover options you’d typically receive for a car:

  • Third party – the minimum level of cover that’s legally required. It covers damage you cause to other vehicles and/or drivers and passengers. Third party insurance won’t cover damage to your own van or personal medical expenses following an accident, or if your van is stolen.
  • Third party, fire and theft – includes the same protection as third party, along with added cover for fire damage and theft.
  • Comprehensive - includes all of the above, but also covers damages to your van, as well as personal medical expenses.

Will my policy include public liability insurance?

A courier van insurance policy is one that you build up as a tailored package. If you’re using your van for work as a courier, you’ll need to consider getting covered with public liability insurance. This cover can protect you against the costs of compensation claims made against you if you caused damage or injured someone while driving your van.

Will my policy include employers’ liability insurance?

Again, if you’re using your van as part of a courier service that you manage, you’ll need to consider additional types of cover. If you employ any members of staff, employers’ liability insurance could cover you for any claims of negligence made against you by employees. It’s a legal requirement to have this insurance if you have any employees who are not members of your family.

Why should I buy courier van insurance through Compare the Market?

Our van insurance comparison service is a great place to start looking for courier cover. Simply enter your details and select haulage when asked what the van will be used for. Once you’ve found a quote from a provider, you’ll be able to add courier features, like goods in transit cover, to your policy as an add-on or arrange a separate form of cover with them directly.

Our comparison service makes it easy to find van insurance from a wide range of providers. Just let us know what you need and we’ll compare van insurance deals for you.

Frequently asked questions

What is the difference between courier and haulage?

The main difference is the type of deliveries you make. Couriers tend to deliver large amounts of smaller goods, like parcels, making many deliveries each day. Haulage involves larger goods, like heavy machinery, and a smaller number of deliveries. 
Despite the difference, when you look for courier van quotes with Compare the Market, you should select the ‘Haulage (carriage of goods for hire or reward)’ option. 

Can I get courier insurance for my car?

Yes, you’ll need this cover if you’re using your car for courier work. There are several insurance providers that offer it. It’s important that you let your insurance provider know if you’re using your car for deliveries, as you’ll be using it for both business and personal use, which will affect your premiums and cover type. 

Will a standard ‘business use’ policy cover my courier van?

Unfortunately not. ‘Business use’ policies are designed to cover you and your vehicle as you travel to visit clients, different sites and other work-related venues, not the items inside your van. 

‘Carriage of own goods’ for business van insurance can cover you and equipment related to your trade, but it doesn’t cover other people’s paid-for items. 
Courier vans need goods in transit insurance to cover customer goods. 

Is courier van insurance more expensive than standard van insurance?

Yes. Courier van policies are designed to cover multiple and potentially expensive items carried in your van and this is reflected in the cost of your premium. 
Courier drivers also spend more time on the road than the average driver. This increases your chances of being involved in an accident and bumps up the cost of cover. 

How can I get cheaper courier van insurance?

You could use many of the same tips for cutting the cost of car insurance to get cheaper courier van insurance, for example: 

Most important of all, compare the cost of a new policy before your current deal finishes. Auto-renewing usually isn’t the cheapest option. 

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