Comparing Courier Insurance
Courier insurance is a type of coverage that you’re legally required to have. It covers the driver as they deliver goods to customers at drop off points. It provides various levels of coverage, depending on the type of policy and insurer’s requirements. It’s also to insure one vehicle or a fleet of courier vans.
Types of Courier Insurance
There are three basic types of courier insurance including:
Third-Party Only: this is the minimum level of coverage you’re required to have by law. Third-Party Only covers damage to third party property or injuries to third parties. This is the cheapest type of coverage; however, keep in mind that this does not protect the driver if injured, or cover damage to the vehicle.
Third-Party Fire & Theft: this is a middle level of coverage, which provides protection against fire and theft. However, this type of policy doesn’t protect against damage to your vehicle caused by an accident.
Comprehensive: covers all of the above and more. It also provides protection for all eventualities that may be encountered by your courier business. This is the most expensive type of policy, but it is worth the cost when it provides protection against all issues you may encounter.
What about optional extras? Are these needed? This will depend on the specifics of your courier business. Keep in mind that optional extras do add to the cost of the premium but may be a vital addition to meet your specific business needs. Optional extras can include:
Goods in transit: this is a good choice for businesses that deliver expensive goods.
- Legal assistance coverage covers legal expenses due to an accident caused by uninsured vehicles or if you’re prosecuted due to an accident while working.
- Breakdown cover: this can include roadside assistance, recovery, EU coverage, and more. This way you have service available when you need it 24/7. You can be back on the road to meet delivery deadlines faster.
- Liability: this type of extra option covers you and your employees if you’re found at fault in an accident. This extra can also include an employer’s liability, as well as public liability.
- Excess protection: covers the cost of your excess if you’re found at fault in an accident or 50/50 claim and will protect against the cost of your insurance excess.
- Trailer coverage: covers a trailer attached to your vehicle and protects against loss and damage to the trailer.
How to Save Money on Courier Insurance
There are a number of ways to save money on courier insurance policies. These include:
- Voluntary excess: Increasing your voluntary excess (but make sure the excess is affordable – don’t go for more than your business can cover)
- Fleet coverage: these policies help save money by covering all the vehicles used in the business by choosing to be covered under one insurer.
- Careful, safe driving: keeping to the rules of the road can go a long way in lowering your premium.
No Claims Discount (NCD): building up a full No Claims Discount and safe driving can also decrease the cost of courier insurance.
Types of Courier Vans Covered
This will vary by insurer and their specific policies; however, these are the most common vehicles covered by courier insurance:
Car-derived van: maybe a good or dual-purpose vehicle, such as a car. These are usually for making small deliveries.
4×4 van provides the space of a van while giving you more room for types of vehicles. This includes 4×4 vans that usually have raised ridge heights. This is the perfect van for delivering to rural areas.
Box van: this is a vehicle that is a cube-shaped loading area, giving you more space. This is a very popular model with couriers who deliver larger parcels.
City van: similar to a car-derived van, these are often used by delivery and trade companies because of their small size, which is perfect for getting around in urban locations.
Electric van: is a vehicle that includes a plug-in charger. These are typically used for driving on busy city streets.
Luton van is similar to a box van, but the loading space is extended. This vehicle also includes an individual cab space.
Panel van: this is one of the most popular courier vehicles in the UK. They’re used across many trades and have body types that can be low, medium or high roof styles.
Temperature controlled: is a type of van with a loading space that is temperature-controlled. These generally are used to carry perishables, such as foods that need refrigeration.
Why Do I Need Courier Insurance?
The reason is that you’ll be carrying valuable parcels for delivery, which is not covered under a regular van insurance policy.
Can I Transfer My Car No Claims Discount (NCD) to my Courier Policy?
This depends on the policies offered by different insurers. It’s best to check with each insurer to see if this may be an option or not.
Since I Have Comprehensive Coverage, Can I Drive Other Van?
In general, it’s not possible to drive other vehicles using courier insurance.
Is It Possible to Add Drivers to a Policy?
This also varies by insurer, but in general, it may be possible. You may be able to add a driver if they meet certain requirements such as:
- They have no unspent criminal convictions
- Age limitations
- License limitations
Can the Van Be Used for Leisure Activities and Work?
It is possible to use the van for leisure and work, but it will depend on each specific insurer’s policy.
As you can see, courier insurance is valuable insurance coverage that you’re required to have if you use a van for delivering parcels to paying customers. Be sure to do your research and read through each policy in order to find a policy that fits your unique business needs.