If you are going to drive for a living, you need to know what insurance you need. The work you do in your vehicle will impact the type of insurance you need to get. If you are going to work as a delivery driver, you need to consider courier insurance.
Who Needs Courier Insurance?
If you are transporting products or documents between a business and customer for payment, you need to have the best courier insurance. This is required regardless of the type of vehicle you drive. If you use your personal vehicle for this business, you need courier insurance.
Your personal insurance will not cover the use of your vehicle for business purposes. If you only have personal insurance and are stopped by the police during a delivery, you will be considered uninsured. This carries a fixed financial penalty of £300 and 6 points on your license. There is also a chance that your vehicle will be confiscated.
Additionally, if you need to claim against your insurance, you will have to prove you were not using the vehicle for business purposes. This can be hard to accomplish and could result in you having to pay out of pocket for any damage. Your personal insurance will also not cover the goods you are transporting.
Courier Or Haulage Insurance
When you look at courier cover, you will notice that many insurance companies offer haulage insurance. These two policies are different and the one you need will depend on the number of stops you make each day. If you are making multiple deliveries in a local area, courier cover is the best option. However, if you only make one or two big deliveries each day, you may want to look at haulage insurance.
What Does Courier Insurance Cover?
Knowing that you need courier insurance is important, but you need to know what it covers. There are three levels of insurance available and the one you choose depends on the coverage you want. The levels are similar to personal car insurance.
The best coverage comes with comprehensive insurance. This insurance level will cover all third-party costs as well as your vehicle and yourself. You will be able to claim the costs to repair your vehicle in the event of an accident.
Third-party fire and theft is the second-highest coverage level. As the name suggests, all third-party costs will be covered. You will also be able to claim if your vehicle is stolen or suffers fire damage. Other damage cannot be claimed.
The lowest coverage is third-party only. This insurance covers the cost of third-party damage, but not the damage to your vehicle. This will need to be paid out of pocket.
As part of your courier protection, you will need to get goods in transit cover. This will provide coverage for the products or documents you transport. Many courier policies will include this coverage, but you need to check this.
Courier insurance is a necessity for all new drivers. If you are caught using your vehicle for deliveries without this, you will be viewed as uninsured and face the penalties for this.