For anyone who delivers goods and packages to customers for a living, courier insurance will provide you with peace of mind on the road. In this article, we explore key questions such as “what is courier insurance?”, “how is courier insurance different from normal insurance?” and “is courier insurance essential?” Read on to find out more.
What Is Courier Insurance?
As a courier, it is likely that you will be transporting anything from packages and parcels to electronics or even medical supplies, to multiple locations. These deliveries often need to be completed on a time-sensitive basis.
Therefore, there are three key factors to consider when it comes to choosing the right insurance:
- Insurance for your vehicle
- Insurance for the goods you are transporting
- Insurance for public liability (this is to cover injury claims from members of the public while you are carrying out your work)
If you are unsure of which cover you may need, the best advice we can give is to look through all available information carefully before you make your decision and to discuss what is included in your policy with your insurer. It’s also a good idea to raise the issue with your employer.
Do You Need Courier Insurance?
If you’re providing a courier service in your car and you’re transporting goods between a business and a customer in return for a payment, then you will definitely need a specific courier car insurance policy.
A standard insurance policy might not fully cover you if you are using your car for commercial or business purposes. Some examples of car insurance for business use can be seen below:
- Carriage of own goods
A carriage of own goods insurance policy covers your car when carrying your own goods for business purposes.
- Carriage of goods for hire and reward
This policy type covers your car when carrying other people or goods that are not for your own business purposes and in return for payment.
- Courier Car Insurance
Courier policies provide cover for the transporting of goods over long distances. As aforementioned, it’s important to note the difference between a courier and a haulier to ensure you take out the correct policy.
As a courier, you may also require goods in transit insurance and public liability insurance, to protect the value of the goods you transport should they be lost, damaged or stolen, as well as protection if you have an accident involving the public. If you have employees, you might also need to consider employers’ liability insurance.
What Levels of Car Insurance Can You Get?
If you don’t declare that you work as a courier and take out a standard commercial car insurance policy, your insurer is unlikely to pay out if you have an accident. This could end up costing you a lot more than having the right cover in the first place.
There are usually three types of car insurance cover available from insurers - third party only; third party, fire and theft; and comprehensive car insurance. What your car insurance covers mainly depends on what you will be using your car for and the type of insurance policy that fits your needs:
- Third-party only
Third party cover is the minimum legal level of insurance you need in the UK to cover your car. This insurance policy covers the cost of any damage or injury caused to another vehicle, person or their property. However, this does not cover or provide any financial assistance for any damage caused to your own car or any injury caused to you in an accident. This also doesn’t cover your car in case of fire damage, theft or attempted theft.
- Third party, fire and theft
Third party, fire and theft offers the same level of cover as third party insurance. In addition to that, you’ll also be covered if your car is damaged through fire, if it gets stolen, or if theft is attempted. Any claim made will always be subject to the fire and theft policy excess.
Comprehensive insurance is the highest level of car insurance cover you can get. It provides cover for any damage or loss to your own vehicle, as well as third party, fire and theft.
However, the insurance you need for courier cars isn’t always contained in a single policy. Instead, you may need to build upon your policy to meet the requirements of the work you do. If you are unsure of what you need, simply explain your situation to your insurer.
How Much Does Courier Insurance Cost?
As with any insurance policy, the price of your premium will depend on a variety of factors, including:
- Make and model of your car
- Your annual mileage
- Your age
- The amount of voluntary excess you are willing to pay
- Where you park overnight
- Your occupation
- The delivery radius you operate in
- Your address
- Your driving history
- How long you have driven for
- The level of cover you choose and any extras you may need
How To Choose The Right Insurance Policy
Many couriers choose to take out comprehensive insurance as it offers them the most protection when they’re out on the road. It’s worth knowing that Be Wiser customers can enjoy a range of free policy extras, including RAC roadside assistance breakdown cover, misfuelling cover, legal expenses cover, and more.
When your car is your livelihood, you need to be confident that your insurance policy suits your business needs, to help you to get your business back up and running as soon as possible if anything were to happen.
It is essential that you shop around to find a competitive price for your car insurance cover, and the Be Wiser website is the best place to do this.