Finding the right courier insurance is daunting for any delivery driver
In this article, industry expert and Pegasus Couriers MD Martin Smith discusses the three main courier insurance types delivery drivers need.
Getting started as a courier driver can be a great way to make money, be your own boss and meet new people daily.
The UK courier industry is booming, with growth rates expected to continue. It’s a fast-growing sector – and for a good reason: it’s easy to get started and there are plenty of opportunities for self-employment. But before you start delivering packages, you’ll need to ensure that you have the right van insurance coverage.
There are three main types of courier insurance every delivery driver should have. These are : van insurance (which covers theft and damage), liability insurance (which covers personal injury claims against you), and goods in transit cover (which covers loss or damage).
These three categories cover common questions: Who pays for any damage if you’re involved in an accident while delivering packages? What happens if someone steals your van while parked outside your house? Is a private car, auto insurance or a business commercial insurance policy enough?
To put it in perspective, at Pegasus Couriers, we have employed and self-employed drivers. The company covers our employed drivers, while contractors – or self-employed courier drivers – need their own van insurance.
I realised that getting all this in place was a tedious task for new delivery drivers, so we launched a one-stop-shop service that includes everything. The aim was to make it easier for all our self-employed drivers to get on the road quicker so that we could outsource deliveries to them and provide daily parcel delivery routes.
This model works well, and if you are a self-employed driver and rent a van from us, we will provide you with great rates for costs such as van rental, delivery insurance and general maintenance. In addition, because we have a large fleet of owned and rented delivery vans, we can negotiate fantastic rates, potentially saving you money.
For owner-drivers, I recommend calling around for quotes, as some companies offer speciality insurance for courier drivers.
It is important to know what is covered under your courier or delivery van insurance (which covers multi-drop type deliveries) as it is a legal requirement. This essentially covers your vehicle and is developed specifically for the industry.
Though not a legal requirement, most businesses require delivery drivers to have Goods in Transit (GIT) insurance. This includes cover for theft, loss, damage caused by accidents and damage caused during loading or transit.
Liability insurance covers the driver in case of injury claims by third parties. Liability insurance can be included in goods in transit insurance and is a prerequisite for many driving jobs.
A private car insurance policy or business use insurance policy is unlikely to cover you for delivering parcels or working as a courier driver. If using a private car for the delivery driving (and delivering parcels or any items), then this should be disclosed to your Insurance company.
When it comes to rates, there are several factors that an insurance companies assesses, such as driving experience, age, any driving claims or convictions, delivery radius, location of the van parked overnight, and types of delivery vans (long or short wheel based) used.
At Pegasus Couriers, we ensure our drivers have the best possible cover linked to their role. We take pride in offering our drivers the most competitive industry rates negotiated by our fleet team.
In summary, if you have these three insurances – you are already on the road to becoming a delivery driver. Don’t forget to talk with your insurance provider to ensure the correct level of coverage – this could save you money in the long run. Some providers also offer package deals – including on all three van insurances.
Please apply on our website now, and our recruitment team will give you a callback.