If there’s one thing that can give any courier or haulier a headache it’s insurance – it’s a necessity (you’re legally required to have the right insurance for your vehicle) so we’ve put together a guide to help you through it.
So, I’m delivering parcels, what do I need?
Well, for starters you need cover for the parcels themselves. Remember, we know this job, and we know what the temptations are to save time...If you’ve ever left the door of your van open, or even the keys in the ignition, you can see where we’re going with this... There are lots of opportunists out there, and some won’t think twice about hopping into your van, with your parcels and making off with the lot...Fancy making that call to the depot manager? Na, us neither!
To cover what you’re delivering, you need ‘Goods in Transit’ insurance, so that if anyone were to help
themselves to that pair of Nike Airs in the box on your front seat, you’re covered. OK, so we said you ‘need’ this cover - it is in fact an optional cover, however there are many companies that insist upon it as it ensures that the goods that they’re entrusting you to deliver are covered. They want to know that should the worst happen, they’re covered, and so are you! Aside from anything else, to keep your options open should you be a freelance courier, it’s best to have it and with cover typically taking care of up to 50K’s worth of goods, as far as we’re concerned it’s a no brainer. Goods in Transit should be cover that you get regardless, as we’ve said before, there’s no price to peace of mind.
That’s the parcels taken care of, we now move onto the next two – you and your van. More about covering you later, but your wheels are just as important. If you’re reading this it’s likely that you’re just starting out, so let’s set you on the right path. Perhaps you’ve just picked it up, it’s sitting outside and you’re looking forward to it being a little cash-cow, bringing home the bacon for you,
but you don’t want to get a bad rash for not taking care of business first and not getting the right level of cover. Because you’re delivering parcels, you can’t use regular commercial van insurance, you need courier van insurance. Because of the job you’re doing, you’re out on the road more often and more at risk of having an accident - it takes this into account. Have an accident without this specific cover and there’s a high chance that your insurance company won’t cover you – it’ll be pretty obvious to the other party that you’re a courier with all those parcels in the back! Get the right cover, don’t sweat it at the wheel...
There are basically three levels of cover:
Third Party – Only. This is the paired back to the bone cover at the most basic level – it will protect you against damage or injury to third- party property, including people or other vehicles. However, it does not protect your own vehicle – you’re on your own.
Third Part Fire & Theft – as the name suggests, this covers you for the theft of your own vehicle, and should it be damaged by fire or written off by being totally consumed by a fire.
Comprehensive – Total peace of mind. All costs taken care of, both yours and the other parties.
(Something to take note of – your cover will not allow you to carry bulky items such as furniture or food. Courier Insurance is for ‘what it says on the tin’. Keep to parcels, letters, newspapers and packages and you can’t go wrong.)
So that’s the parcels and your van taken care of, what about you? Yes, you! Were you to injure anyone in the course of your work, you’d be liable? Of course, and taking out cover for this is highly advisable. It’s called Public Liability Insurance and it means that should anyone take out a claim against you, you’re covered, and any costs that you’ve incurred in the form of legal fees are also taken care of. Nice to know that should you be involved in such an incident that you won’t face potentially bank balance crippling costs...
You may reflect on all this and think that it’s just more money, is it necessary? Think of it this way – you only have to be unlucky once...
OK, so how much does this cost? Like any insurance, it can be affected by a number of factors, but the main ones are these:
The level of cover that’s been selected – basic third party may be cheaper, but comprehensive provides total cover – the price of peace of mind..
The age of the driver.
The excess amount selected – the more you’re willing to pay up front in the event of an accident, the lower your premiums (you’re basically reducing the insurers financial exposure to any accident you have)
The radius of the region that you’re delivering in – how many miles are you delivering within?
Where your car is parked overnight – is it garaged? What is the crime rate in the area –
postcodes are analysed and historical crime
data can influence the price of premiums.
Does the driver have any past convictions?
The type of vehicle being insured – any modifications? How big is the engine? These and other factors will affect the premium.
Generally speaking, you can expect to pay between £85 - £95 for cover, as for Goods in Transit it depends just what sort of level you require, but £220 isn’t an unreasonable amount to expect to pay. It’s mindful to think of it like this...you’re protecting your livelihood, your ability to earn a living without it being threatened by one random mistake or stroke of bad luck. It’s why we have insurance. Ways to keep your premium down:
• Do your research and choose a van with good security – a Thatcham approved alarm or an immobiliser will help.
Install telematics – doing this demonstrates to any insurer that you’re serious about reducing risk and are a responsible driver. It also speeds up the resolution of claims.
If you’re a fleet operator, having fleet insurance is a far more cost-effective way to go.
Drive safely, keeping a good no-claims record is a sure-fire way of keeping premiums down.
Be realistic with the level of Goods in Transit cover you need and remember that the level of excess you’re prepared to pay will also help. Hire & Reward This type of cover is typically bought by for anyone that uses their own car for courier delivery work, as opposed to a commercial vehicle. It can be used to cover commercial vehicles, but as it only covers the vehicle in question and not the goods (i.e., Parcels), you’re better off getting ‘Goods in Transit’ cover should you be using your own car for couriering. It’s also used by taxi drivers and chauffeurs’ due to the fact that they carry fare paying passengers.
To be eligible for cover, you need to be a permanent UK resident, be aged between 25 and 75 and hold a full UK driving license.
Should you be an employer, with a fleet of drivers that take care of your deliveries for you, then Employers Liability Insurance is something that you should have in place. Often acquired in conjunction with Public Liability Insurance, it is a legal requirement. Fleet Insurance – Courier & Haulage
For the courier fleet owner, this is the most cost- effective means of getting your assets protected. The advantage to a fleet policy is that you’re able to add several vehicles to one policy, instead of a policy for each vehicle, although most insurers will require them to be all of the same vehicle type. The flip side to this is that the more vehicles you add, the lower your premiums become (so long as you keep the claims down of course!). A telematics
system is often incorporated into a fleet deal, which allows you to monitor your fleet with the idea that your claims will be less, and any claim that is made can be processed by the insurer more quickly.
Couriersdepot.com is fully able to provide, through our partners, specialist haulage cover for fleets of vehicles (3 vehicles or more), be it from vans right up to HGV’s (Haulage Insurance is required for any vehicle that is more than 3.5 tonnes in gross weight).
In addition to commercial vehicle insurance, through our partners we can also assist in the sourcing of a wide range of business insurance products such as Professional Indemnity Insurance, Business Equipment and Office Contents, Self- Employed, Sole Trader Insurance, Equipment Breakdown Insurance etc.
Why should you use Couriersdepot.com?
Couriersdepot.com works with a panel of brokers that are experts in their field. These brokers are connected directly to the market and have their own panel of insurers. In turn, we have established partnerships with them with the sole aim of providing you with the best possible advice and price. Our panel of brokers will spend time listening to your own individual circumstances, and then identify which insurer will be best for you. If you’re on a budget, they’ll identify those companies that provide finance to ease the financial burden, or those that do the best fleet insurance if you’re a company owner. Whatever your situation, they’ll be able to identify the best package or product for you, whether it’s renewal time or your first entry into the market.
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