What is courier van insurance?
Courier van insurance, sometimes known as ‘hire and reward insurance’, is a type of van cover designed for drivers who will be making lots of deliveries as part of their work, typically dropping off other people’s goods for payment.
Along with hire and reward activities, courier insurance will also typically cover some other types of van use where multiple stops are required, like distributing leaflets, for example. As such, courier van insurance covers the unique risks that come with doing multiple drop-offs in the same area.
Haulage van cover differs from courier van insurance mainly in that it is intended for longer journeys, where only one or two stops will be involved.
However, courier insurance policies do tend to cover van use for light haulage work such as furniture removal.
Need car courier insurance instead? Look for 'commercial travelling' when getting a car insurance quote.
What level of courier van insurance should I get?
What courier van insurance policies will cover varies from insurer to insurer. However, there are three main levels of cover:
What does courier van insurance cover?
What’s covered by your courier van insurance policy depends on the level of cover and the insurer you choose.
It can be well worth opting for a fully comprehensive policy that includes some additional features as standard. Along with covering damage to your van or other people’s property or vehicles due to an accident, some fully comprehensive courier van policies will include additional benefits.
For example, they may cover medical expenses, windscreen damage, or loss of personal belongings and infotainment, or enable you to drive a courtesy van when yours is being repaired.
Courier van insurance policies usually don’t include cover for the cargo you’re carrying as standard. For this you'll need goods in transit insurance, which can be added as extra cover.
Here are some optional extras that could be well worth adding on when you purchase your courier van insurance policy:
Goods in transit cover covers your cargo against loss, theft and damage. You need to ensure that the level of cover provided is high enough to meet the value of goods you carry.
Public liability insurance protects your business against claims for compensation and legal costs that others may bring.
Employer’s liability insurance covers against a member of your staff injuring themselves through work.
How can I get cheaper courier van insurance?
There are a number of ways to reduce your courier van insurance premiums without compromising on your level of cover.
Whether you choose third-party only or a fully comprehensive policy, you could still lower your courier van insurance premiums if you:
- Advertise your business on your van
- Consider a black box policy
- Join a trade federation
- Use a dashcam while you drive
- Increase your voluntary excess
- Improve your van’s security
- Don’t auto-renew
Advertising your business on your van can help deter potential thieves, reducing risks for insurers and in turn reducing your courier van insurance premiums.
Consider a black box policy providing you’re a careful driver, it might be worth choosing a black box courier van policy. Your insurer will then use a telematics device or app to monitor your driving and set your insurance premiums. Depending on the data collected, the cost of your black box van insurance could then go down or up.
Join a trade federation as some insurers will offer discounts on courier van insurance for members of trade federations.
Use a dashcam while you drive as installing a dashcam means it should be easier to prove a claim where a third party is at fault. Some insurers will offer savings on courier van cover when you put a dashcam in.
Increase your voluntary excess to cut the cost of your courier van insurance, though this also means you could receive a lower payout in the event of a claim.
Improving your van's security can make it less prone to theft and help you get a cheaper courier van insurance premium.
Don’t auto-renew! Compare quotes annually to find the cheapest courier van insurance.
Find other ways to reduce the cost of your van insurance.
Is hire and reward cover included in courier insurance?
Hire and reward insurance is a must if you are using your van to deliver other people’s goods in exchange for payment.
It’s usually included in courier insurance policies as standard.
Insurers look to design courier van insurance to meet the needs of drivers who are doing jobs like mail order and parcel delivery.
When you get a quote we’ll ask you what you use the van for.
If you need hire and reward cover included, select ‘Haulage use – delivering goods for hire and reward’.
We’ll also ask you on average how many deliveries you make each day.
What our van insurance expert says
Before you get a quote, be really clear about the cover you need, especially with things like your annual mileage. If you’re unsure about anything, check with your insurer. It might be something about how you use your van, or which extra policy features you might need. Whatever it is, they’ll be able to help you with it.
Head of van insurance