Self-Employed Courier Insurance
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Why Compare Self-Employed Courier Insurance at SimplyQuote
Being a courier is not easy, even on a good day. But being a self-employed courier is even harder! There are so many variables that could go wrong in your day that can impact your livelihood; from peak-hour traffic delaying your deliveries to the increased risk of being in an accident – the list is pretty endless!
SimplyQuote understands this and has designed the free, online comparison tool with you in mind. Quickly find cheaper courier insurance that’s best suited to your business, whether you’re a part- or full-time driver and start saving on your premiums today!
What Do You Need To Get A Quote?
Please provide the following information so SimplyQuote can provide you with a list of insurance quotes:
- Drivers’ details – name, surname, driving licence details
- Vehicle details – make, model, registration number
- Delivery schedule – working hours, location
- Insurance details – claims history
- Policy details – level of cover you’re interested in
Why Do You Need Self-Employed Courier Insurance?
Courier insurance is essential for self-employed individuals because it specifically addresses the unique risks you face.
Standard vehicle or motorbike insurance typically excludes these activities, leaving couriers vulnerable to financial losses from accidents or theft. Additionally, courier insurance often includes public liability cover. This protects you against claims if someone is injured or their property is damaged due to your courier activities. It also ensures compliance with UK laws.
Using a vehicle for commercial purposes without appropriate cover can result in legal penalties. Therefore, it’s not just a protective measure, but a legal necessity for couriers.
To avoid confusion, self-employed courier insurance is also called:
- Hire and reward insurance
- Self-employed delivery insurance
- Self-employed van courier insurance
- Delivery driver insurance
Who can you get self-employed courier insurance?
Anyone carrying goods in exchange for payment can get a hire and reward policy, as long as they meet the following criteria:
- Between 17 and 75 years old
- Hold a valid UK/EU driving licence
- Reside and work in the UK
Note: Delivery drivers under 24 are statistically prone to be involved in an accident, due to their age and inexperience. Insurance providers usually charge higher premiums in these drivers.
What Does Self-Employed Courier Insurance Cover?
Self-employed courier insurance covers various road risks and liability claims. Most comprehensive plans will include:
- Public liability insurance
- Employer’s liability insurance (if you employ delivery drivers)
- Legal expenses cover
- Accidental damage cover
- Windscreen cover
- Hire and reward insurance
Note: Different insurers provide varying levels of cover and policy wording may change between insurance companies.
What’s not covered?
- When the courier vehicle is used for personal use (i.e. not doing deliveries)
- General wear and tear on the vehicle/mode of transport (e.g. tyres, brake pads)
- Personal belongings – unless special insurance is taken out for this
- Goods in transit – the physical item/s you are transporting from A to B
- Uninsured drivers – persons not mentioned on your policy
- Costs incurred due to negligence (e.g. leaving keys in the ignition and the vehicle being stolen)
- Malicious/intentional damage caused by the courier (to claim insurance money)
Which types of vehicles are covered?
Self-employed courier insurance in the UK covers a wide range of vehicles used for courier services (including your own vehicle) such as:
- Cars
- Vans
- Motorcycles
- Scooters/mopeds
- Bicycles
What Type Of Self-Employed Courier Insurance Is Available In The UK?
There are several types of hire and reward insurance policies in the UK. Finding the right cover that suits your business needs is vital to ensure you receive the correct cover.
Standard courier insurance
is recommended if you make multiple deliveries to multiple locations, like an Amazon driver.
Transit insurance
is recommended if you make single, long trips to one address like a furniture-hauling driver. It’s also called haulage insurance.
Food courier insurance
is recommended if you deliver food (e.g. Uber Eats) as your main source of income.
Van courier insurance
is recommended if your main mode of transport is delivery vans (you can’t drive different vehicles interchangeably when delivering goods).
Temporary courier van insurance
offers short-term insurance cover for vans up to 3.5 tonnes and is available hourly, daily or weekly.
Pay-as-you-go insurance
is recommended if you’re a part-time delivery driver (e.g. students working periodically during holiday times)
Annual courier insurance
is recommended if you offer a full-time delivery service (i.e. your main source of income).
Note: Haulage insurance covers large deliveries to a single address whereas courier insurance covers multiple deliveries to multiple addresses.
What Levels Of Self-Employed Courier Insurance Can You Get?
As with any standard motor vehicle insurance policy, self-employed delivery drivers can choose between three main levels of cover:
- Third-party only (TPO)
- Third-party, fire and theft (TPFT)
- Comprehensive cover
TPO
- The most basic level of cover.
- A legal requirement to drive on UK roads.
- Only covers third-party persons/property/vehicles in the event of an accident. For example, your insurance provider will pay to have the car of the third party repaired or compensate for their medical costs.
- TPO does not compensate you for any vehicle damage or personal injury costs.
TPFT
- Medium-level of cover.
- Includes TPO.
- Will only pay out if your vehicle is stolen or damaged by fire.
- Won’t pay out for vehicle repair/replacement costs when involved in an accident.
Comprehensive
- Highest level of cover.
- Includes TPO and TPFT.
- Will compensate you for vehicle repair/replacement when involved in an accident even if you are at fault.
- May include additional extras such as windscreen protection, key replacement, misfuelling cover and breakdown cover. Do confirm these finer details with your chosen insurance provider.
Note: Some insurers may offer a courier insurance package deal whereby they tailor policies to suit your needs.
What Add-Ons Are Available For Self-Employed Courier Insurance?
For self-employed couriers, several additional cover options are available to enhance your insurance policy:
- Goods in transit (GIT) cover – insures the items you’re delivering against damage or theft while in your vehicle.
- Employers’ liability insurance – as mentioned, you’ll need this add-on (if not included in standard policies) if you employ delivery drivers.
- Legal expenses cover – provides financial assistance for legal costs in case of disputes or legal claims against your courier services.
- Breakdown cover – ensures assistance if your vehicle breaks down, keeping your business on the move.
- Windscreen insurance – may be available as a policy add-on for basic TPO and TPFT plans. As the name suggests, it covers the cost to replace or repair broken/damaged windscreens.
- Personal belongings – most policies do not cover drivers’ personal goods so this add-on is a worthwhile investment if you have valuable items with you whilst on delivery (e.g. GPS systems, mobile devices, wallet, etc.)
- Personal injury insurance – covers your medical expenses if you are injured in a road-related accident while on duty.
- Loss of income – being self-employed, you run the risk of losing income if you are out of action following a severe accident. This policy is designed to cover your financial losses.
- Tools insurance – covers any tools or equipment you may have with you while out on the road.
- Gig economy insurance – is ideal for couriers operating in different occupations. For instance, you are an Amazon driver during the day and a food courier at night.
- No-claims discount (NCD) cover – protects your no-claims bonus even when making a claim.
- Personal motor car insurance – opt for this policy if you use your own car for courier services. It covers your vehicle when used outside of working hours.
These options provide comprehensive protection, covering various aspects of courier work beyond basic vehicle damage. They are tailored to the unique challenges faced by couriers, ensuring peace of mind during daily operations.
How Much Does Self-Employed Courier Insurance Cost?
On average, you can expect to pay:
- £46 per month (single, local driver with no employees)
- £150 per month (courier business with one driver working nationally)
The price of a self-employed courier policy depends on several thing, such as the level of cover you opt for and what vehicle/s you drive.
What influences insurance prices?
- Driving history – a clean driving history often leads to lower premiums.
- Vehicle type – larger or more expensive vehicles typically incur higher insurance premiums.
- Cover level – opting for comprehensive cover, which provides more extensive protection, will generally be more expensive than basic TPO cover.
- Geographical location – operating in urban areas with higher traffic density can increase the risk of accidents, potentially leading to higher insurance costs compared to rural areas.
- Nature of courier work – the type of goods being transported, and the frequency of deliveries (i.e. working schedule) can influence insurance premiums. High-value goods or frequent deliveries can increase the risk and thus the cost.
- Additional cover options – opting for extra coverages like Goods in Transit or breakdown cover will add to the overall cost.
How Can You Get Cheaper Insurance Rates?
Here are a few ways to reduce your courier insurance premiums:
- Do a courier insurance comparison with SimplyQuote’s online tool to find the best deal.
- Opt for annual payments as opposed to monthly instalments.
- Drive a smaller vehicle (if possible) as these vehicles are generally cheaper to repair/replace.
- Keep mileage down to reduce your chances of being in an accident.
- Consider black box technology to monitor how you drive.
- Secure vehicle/s when not in use such as in a locked garage or on a private driveway.
- Opt for a higher excess to bring premiums down.
How To Compare Self-Employed Courier Insurance Quotes With SimplyQuote?
Comparing shop insurance services with SimplyQuote is quick and hassle-free:
- Fill in the short form with a few details about yourself, your vehicle and your courier business.
- Select the policy add-ons you want.
- Quickly compare quotes to find a quote suited to your budget and business needs.
- Save money with the best deal today.
Frequently Asked Questions
Self-employed courier insurance, often referred to as ‘hire and reward insurance’, is a specialised type of insurance designed for individuals who deliver goods for a living.
It covers the unique risks faced by couriers, such as accidents, vehicle damage and theft of goods in transit. This insurance is crucial for those transporting goods or passengers in exchange for payment, ensuring they are protected against common occupational hazards.
In the UK, a wide range of delivery services offer opportunities for self-employed couriers, each with its own unique focus and operational model. Well-known companies like Amazon Flex, Deliveroo, Uber Eats and Evri (previously Hermes) are popular choices. These platforms provide flexible working arrangements, allowing couriers to choose their schedules and delivery areas.
- Amazon Flex and Evri (Hermes) are notable for their parcel delivery services. They offer couriers the chance to deliver a variety of packages, catering to a broad customer base.
- Deliveroo, Uber Eats and Just Eat specialise in food delivery, connecting couriers with local restaurants to deliver meals to customers.
- DPD and Yodel are renowned for their extensive parcel delivery services across the UK, handling a diverse range of delivery needs.
- CitySprint focuses on same-day delivery services, ideal for urgent deliveries.
- ParcelForce Worldwide extends its services to both national and international parcel delivery, offering a wider scope for courier routes.
- Gophr is known for its flexible and local courier services, catering to more specific and community-based delivery needs.
Self-employed couriers in the UK typically do not need a special driving licence for standard courier work using cars or small vans. A standard full UK driving licence is sufficient. However, if you plan to drive larger vehicles, you may need a licence that covers higher categories, like a Category C1 licence for vehicles weighing between 3.5 and 7.5 tonnes.