Courier insurance

A straightforward guide for UK couriers

Courier insurance is specialist motor cover for drivers who deliver parcels, food, or other goods for payment. It sits on top of standard vehicle insurance with hire and reward permissions, and is often combined with goods in transit and public liability. If you drive for delivery work without the correct cover, you risk invalid insurance, fines, vehicle seizure, and personal liability for claims. This guide sets out the essentials in plain English so you can choose suitable cover with confidence.

Across the UK, delivery work carries higher risk than private driving. Couriers spend more hours on the road, work to deadlines, and often carry valuable items. Insurers price for that reality. Typical comprehensive premiums in 2025 range from about £1,100 to £2,300 a year for individual drivers, with averages around £1,450 to £2,150 for many van policies. Some drivers with strong profiles see premiums near £1,120, while new couriers frequently face £2,000 to £3,000 until they build experience.

Market costs are moving. UK fleet premiums jumped in recent years as accident rates increased and repair costs rose by roughly a third since 2020. For the courier sector, forecasts indicate a further 15 to 25 percent rise from September 2025. Small operators with one to five vans could see annual premiums move from roughly £4,200 to £5,100 per van, tightening margins. The aim of this guide is to help you understand cover, compare options safely, and adopt risk controls to manage these costs.

Insurance can offer real financial protection, but only when you understand what is covered and where the limits sit. The sections below walk you through cover types, pricing factors, eligibility, and practical steps to buy and claim without surprises.

Clear, calm, and factual guidance. No jargon. No assumptions.

What is covered and how it fits together

Courier insurance typically packages several components around your vehicle policy. At the core is motor insurance with hire and reward, allowing you to carry goods for payment. Many couriers add goods in transit to protect items you carry, and public liability to cover injury or property damage to third parties arising from your work. Breakdown cover is commonly bundled for operational continuity.

Comprehensive motor cover can help with accidental damage to your vehicle, third-party injury or property damage, fire, and theft. Third party only or third party fire and theft can cost less upfront but may leave you funding your own vehicle repairs. Goods in transit usually sets a per-load and per-item limit, with exclusions for certain items like cash, jewellery, or hazardous materials. Public liability has a limit of indemnity, often in the millions, with an excess and conditions around safe working practices.

Claims are handled by your insurer or a delegated claims handler. For vehicle incidents, you will be asked for incident details, photos, telematics data if fitted, and third-party information. For goods in transit, proof of dispatch, packing quality, and delivery notes are typically required. Policies may exclude unattended vehicles unless locked, goods left overnight in unsecured locations, or wear and tear. If you use multiple subcontractors, you may need evidence that they hold their own valid cover.

A practical example: if you reverse into a post and damage your bumper and another vehicle, comprehensive cover can pay for repairs and third-party costs, subject to excess. If a parcel is lost after a break-in to your locked van, goods in transit can respond up to the policy limit. If a member of the public trips over a parcel you are handling and is injured, public liability can apply. Limits, excesses, and conditions decide the outcome.

Who benefits most

Courier insurance makes sense for anyone delivering parcels or goods for payment, whether full time, part time, or gig economy. It suits owner-drivers with a small van, riders using motorcycles, and companies operating small fleets. If you handle valuable items or work in busy urban areas, the risk of accidents, theft, and third-party claims is higher, making robust cover more important.

If you only use your vehicle for personal errands and do not carry goods for payment, standard private car or van insurance is usually sufficient and cheaper. Likewise, if deliveries are infrequent and strictly within an employer’s insured fleet, you may already be covered, although you should verify this in writing. New entrants should budget carefully, as initial premiums are typically higher until a safe driving record is established.

Choosing your cover level

1. Basic - third party only with hire and reward

   • Protects third-party injury and property damage only.
   • Lowest upfront cost, but no cover for your own vehicle damage.
   • May suit older, low-value vehicles where repair costs would exceed the vehicle value.

2. Standard - third party fire and theft with hire and reward

   • Adds cover for fire and theft of your vehicle.
   • Often a middle ground for cost-conscious drivers seeking some protection.
   • Still no cover for accidental damage to your own vehicle.

3. Comprehensive - full motor cover with hire and reward

   • Includes accidental damage, fire, theft, and third-party liabilities.
   • Often competitively priced for experienced drivers.
   • Typically required by finance providers or leasing companies.

4. Goods in transit (add-on)

   • Covers loss or damage to items you carry, subject to per-item and per-load limits.
   • Check exclusions for high-risk goods and unattended vehicles.

5. Public liability (add-on)

   • Covers third-party injury or property damage linked to your work activities.
   • Limits commonly start at £1 million, with options for higher limits.

6. Breakdown and courtesy vehicle (add-on)

   • Roadside recovery and a temporary replacement vehicle to keep you working.
   • Clarify availability for vans and delivery use.

7. Telematics and risk management (add-on or feature)

   • Driver behaviour tracking, dashcams, and route optimisation.
   • Can help reduce claims and support premium discounts over time.

Prices and what drives them

Courier premiums in the UK vary widely by profile, location, and cover. Typical individual costs in 2025 range from about £1,100 to £2,300 for comprehensive cover, with some low-risk profiles starting near £1,120. New drivers often face £2,000 to £3,000. Sector trends point to a 15 to 25 percent rise from September 2025, particularly affecting small fleets.

Are you eligible

Most UK residents with a valid driving licence and a suitable vehicle can apply. Insurers typically ask for your licence details, driving history, no claims evidence, vehicle information, and proof of address. For goods in transit and public liability, expect questions about the types of items carried, packaging standards, and typical load values. Fleet applicants may be asked for claims experience, driver lists, and risk management procedures.

Common restrictions include age limits for certain vehicles, higher excesses for younger drivers, and requirements for secure overnight parking. High-value loads, hazardous goods, and poor claims histories can lead to higher premiums, exclusions, or declines. If you subcontract, insurers may require that all drivers hold valid hire and reward cover. Being transparent on the proposal form is essential because inaccurate disclosures can invalidate claims.

From quote to claim in simple steps

1. Gather licence, vehicle, mileage, and delivery route details for an accurate quote.
2. Decide on motor cover level, then set goods in transit limits and liability.
3. Compare multiple insurers on limits, exclusions, excesses, and renewal terms.
4. Ask about telematics, driver training, and security devices that lower risk.
5. Purchase the policy and store documents digitally and in the vehicle.
6. Record incidents promptly with photos, witness details, and dashcam footage.
7. Submit claims quickly, providing delivery notes and proof of item value.
8. Review renewal early and adjust limits as your workload changes.

The balanced view

Key checks before you commit

Before buying, read the schedule and policy wording carefully. Confirm your motor cover level includes hire and reward. Check excesses for accidental damage, windscreen, theft, and goods in transit. Review per-item and per-load limits, any unattended vehicle exclusions, and overnight parking requirements. Ensure public liability and goods in transit limits reflect the actual value of the items you carry and the environments you work in.

Ask how no claims discounts apply to courier use and whether telematics or driver coaching is available. Confirm the courtesy vehicle is suitable for deliveries. Note that renewal pricing can change year on year, especially given sector-wide increases. Hold onto delivery notes, proof of item values, and evidence of secure storage, as these often support claims.

Alternatives that might fit better

1. Private van insurance
   • Suitable if you never carry goods for payment. Lower cost but not valid for courier work.
2. Carriage of own goods cover
   • For tradespeople transporting tools or materials they own, not third-party items.
3. Public liability only
   • For businesses not delivering goods by vehicle but still interacting with the public.
4. Short-term or pay-as-you-go courier cover
   • For occasional delivery work where annual policies are not cost effective.
5. Fleet insurance
   • For two or more vehicles under one policy, with central risk management controls.

Frequently asked questions

Q: Do I need courier insurance for occasional weekend deliveries? A: Yes, if you carry goods for payment, you need hire and reward motor cover even for occasional work. Short-term or pay-as-you-go policies may be more suitable than annual cover.

Q: How much should I budget as a new courier? A: New UK van couriers often see £2,000 to £3,000 annually at first. Costs usually fall with a clean record, telematics data, and sensible vehicle choices as you build experience.

Q: Is comprehensive always more expensive than third party? A: Not always. For safer, older drivers, comprehensive can sometimes price competitively due to wider insurer appetite and better risk profiles. Always compare like-for-like limits and excesses.

Q: What is goods in transit and how much cover do I need? A: It protects items you carry against loss or damage up to stated limits. Choose limits that match the maximum load value you realistically carry, and check exclusions for high-risk items.

Q: Why are courier premiums rising in 2025? A: Higher claim frequencies, more expensive repairs, and advanced vehicle technology are pushing costs up. The sector is forecast to see 15 to 25 percent increases from September 2025.

Q: Are delivery drivers really higher risk? A: Yes. Frequent driving, tight schedules, and valuable cargo increase exposure. Business drivers feature in a significant share of UK accidents, which flows through to premium levels.

Q: Can public liability be as low as a few pounds a month? A: Entry-level public liability can start from only a few pounds monthly, but costs depend on limits, activities, and claims history. Ensure the limit matches your risk, not just your budget.

What to do now

Take a quiet moment to list your routes, load values, and annual mileage. Get quotes from multiple insurers on the same cover levels, ask about telematics and driver training, and compare renewal terms, excesses, and exclusions. Move at your pace. The right policy is the one that fits your work and your risk.

Important note

This guide provides general information, not personal financial advice. Cover and pricing vary by insurer. Always read the policy wording, schedule, and endorsements carefully and confirm all details before you buy or rely on the insurance.