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.

Written by

Motor insurance expert

Last Updated

18 JULY 2024

4 min read

What is courier van insurance?

Courier van insurance – sometimes referred to as ‘hire and reward’ insurance – is specialist cover, which is usually put together as a package. You’ll need it if you’re paid to make regular deliveries in a relatively small area.

Courier van insurance is different to hauliers’ insurance, which covers LGV drivers making long trips that mostly involve just one or two deliveries.

Remember, courier insurance won’t cover you for house moves or for transporting high-risk or hazardous goods.

How does courier van insurance work?

Courier van policies vary, depending on the insurance provider. It’s not easy to find a policy that covers absolutely everything. It’s best to think of courier van insurance as a package – start with a van insurance policy as your base, then choose the extras you want.

Some policies will cover items locked in your van overnight. A comprehensive courier policy might also provide you with a courtesy van you can use to get back on the road if your own vehicle is out of action.

What’s goods in transit cover, and do I need it?

When you’re comparing van insurance, look for goods in transit cover and make sure you have enough to cover the value the goods you’re carrying. Van insurance doesn’t usually include this as standard, so you may need to arrange it as a separate add-on. You could find that there’s a limit to how much you’re covered for, both for individual items and cargo loads.

Goods in transit insurance won’t usually cover damaged items if they weren’t properly packaged. Before buying any policy, check the wording carefully for any other exclusions or restrictions.

Do I need courier van insurance?

If you’re being paid to transport items that don’t belong to you, you’re legally required to have courier van insurance in place. That way you’ll be covered if your van is damaged (or damages another vehicle) while you’re making deliveries.

Goods in transit insurance isn’t a legal requirement, but we recommend you have it so you’re covered for the goods you’re transporting. If you don’t have it and these are damaged in an accident, you’ll probably have to cover the cost of replacing them yourself.

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

Courier van insurance is typically made up of multiple policies. You can cover your vehicle with a standard van insurance policy, with the same options you’d have for a car:

Third party – the minimum level of cover you’re legally allowed on UK roads. This covers damage you cause to other vehicles and/or drivers and passengers. Third party insurance won’t cover damage to your own van, or your own medical expenses, or replace your van if it’s stolen.
Third party, fire and theft – this includes the same protection as third party, but also covers you for fire damage and theft.
Comprehensive – this includes everything listed above, but also covers damage to your van and personal medical expenses.

Do courier van policies include public liability insurance?

A courier van insurance policy is one that you build as a tailored package, so it won’t include public liability insurance as standard. This is something you may want to add if you’re using your van for courier work, as it will cover any compensation costs if you injure someone while driving your van.

Do courier van policies include employers’ liability insurance?

Courier van policies don’t include employers’ liability insurance as standard, so it’s something you might want to consider adding. If you employ even just one person, you’ll need employers’ liability insurance in case they make a claim against you. Employers’ liability insurance is a legal requirement if you have any employees who aren’t family members.

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

Our van insurance comparison service is a great place to find courier cover. Simply enter your details and, when you’re asked what the van will be used for, choose haulage. Once you’ve found a quote, you’ll be able to add extras like goods in transit cover, or arrange these as separate cover.

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

How much does courier van insurance cost?

How much you pay for your courier van insurance will vary, depending on where you live, what kind of van you drive, and your driving history. Quotes are tailored to your circumstances, but to give you some idea, 51% of our customers were quoted less than £783.24 for their van insurance in June 2024.

Frequently asked questions

What’s 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 Comparethemarket, you should choose the ‘Haulage (carriage of goods for hire or reward)’ option.

Can I get courier insurance for my car?

Yes – and you’ll need it if you’re using your car for courier work. Several insurance providers offer this as an option. It’s important to tell your insurance provider if you’re using your car for deliveries, as it means you’ll be using it for both business and personal use. This will affect your premiums and cover type.

Will standard ‘business use’ insurance 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. It doesn’t cover what’s inside your van.

‘Carriage of own goods’ for business van insurance can cover you and your equipment, but it won’t cover other people’s belongings.

If you’re transporting other people’s property, you’ll need goods in transit insurance.

Is courier van insurance more expensive than standard business insurance?

Usually, yes. This is because courier van policies will cover the many – and potentially expensive – items you’re transporting in your van. This risk will be reflected in the price of your premium.

Courier drivers also spend more time on the road than the average driver. This increases your chances of an accident, bumping up the cost of cover.

Can I use courier insurance to make deliveries abroad?

If you’re delivering goods abroad, it’s likely you’ll need to extend your policy to make sure you’re covered. If in doubt, check your policy small print or speak to your insurance provider.

Does food courier insurance exist?

Some insurance providers offer specialist policies for couriers delivering food. But if you’re a courier for one of the many food-delivery services, speak to your employer in the first instance to see what they cover in terms of your vehicle and the food you carry, and if it’s worth taking out extra insurance yourself.