INSURANCE GUIDE Courier Insurance UK - cover for parcel and package delivery drivers |
TL;DR
- Standard van or car insurance does not cover courier and delivery work - hire and reward (H&R) motor insurance is required for any paid delivery activity.
- Courier insurance combines H&R motor cover, goods in transit (GIT) for the parcels being carried, and public liability for third-party claims.
- Most courier contracts with platforms (DPD, Evri, Amazon Flex) require drivers to hold their own H&R cover and minimum GIT limits.
- Goods in transit cover protects the cargo against loss, theft, and damage while in the vehicle - not covered by the motor policy.
- Annual courier insurance packages typically cost GBP 1,200 to GBP 3,500 for a standard car or van depending on driver age and claims history.
Last reviewed: June 2026
KEY FACTS | |
| Motor cover required | Hire and reward (H&R) - Class 3 use under Road Traffic Act 1988. Standard SDP or business Class 1/2 excludes courier work |
| GIT cover | Goods in transit protects parcels against loss, theft, and damage in transit - separate from motor insurance |
| Platform requirements | DPD, Evri, Amazon Flex, and similar platforms require own H&R cover and minimum GIT (typically GBP 10,000 to GBP 25,000 per load) |
| Public liability | Covers third-party injury or property damage caused by courier activities - typically GBP 1 million to GBP 2 million |
| PAYG option | Session-based H&R cover available for part-time couriers - activated per shift via app |
| Annual package cost | GBP 1,200 to GBP 3,500 for standard car or van; lower for part-time PAYG |
What Is Courier Insurance?
Courier insurance is a specialist motor insurance package for self-employed delivery drivers and courier businesses. It combines hire and reward (H&R) motor insurance (covering the vehicle for delivery work), goods in transit (GIT) cover (protecting the parcels and packages being carried), and public liability insurance (covering third-party claims arising from courier activities).
The need for specialist cover arises because standard motor insurance - whether for a car or a van - explicitly excludes hire and reward use. Delivering parcels for payment is Class 3 motor use under the Road Traffic Act 1988. Using a standard SDP or business-use policy for courier work means the vehicle is uninsured for that activity. If an accident occurs during a delivery, the insurer can refuse the claim and void the policy.
KEY FACTS
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The Three Core Covers
Hire and reward motor insurance: The foundation of courier insurance. Covers the vehicle (car or van) for the actual activity of carrying goods for payment. Available as third-party only, third-party fire and theft, or comprehensive. For self-employed couriers using their own vehicle, comprehensive cover is advisable to protect the vehicle itself in the event of an accident.
Goods in transit: The motor policy covers the vehicle; GIT covers the cargo. If a van carrying GBP 15,000 of parcels is involved in an accident and the contents are destroyed, the motor claim covers the vehicle damage. The parcel losses require a GIT claim. Most courier contracts specify a minimum GIT limit - typically GBP 10,000 to GBP 25,000 per load. Check the contract requirements and ensure the GIT policy meets them.
Public liability: Covers claims from members of the public, property owners, and others for bodily injury or property damage caused by courier activities. A parcel being delivered that causes a customer to trip, or a courier van reversing into a client gate, are typical PL scenarios. Most courier contracts require a minimum PL of GBP 1 million.
PAYG vs Annual Courier Insurance
Part-time couriers who work fewer than 15-20 hours per week may find PAYG (pay-as-you-go) H&R cover more cost-effective than an annual policy. PAYG courier insurance is activated per shift via a smartphone app and charges by the hour. Indicative PAYG rates for courier vans start from approximately GBP 2 to GBP 5 per hour. Annual policies become more cost-effective above approximately 15-20 working hours per week.
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Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Does my standard van insurance cover courier work?
No. Standard van insurance for social, domestic, and pleasure use or business Class 1/2 use explicitly excludes hire and reward activity. Courier and delivery work is hire and reward use. Using a standard policy for courier work means the vehicle is uninsured for that activity - claims arising during deliveries will be refused.
Do I need separate GIT cover if I use my own van?
Yes. Your motor policy covers the van; it does not cover the parcels inside. Goods in transit insurance is a separate product covering the cargo against loss, theft, and damage while in your vehicle. Most courier platform contracts specify a minimum GIT limit as a condition of working for them.
Does courier insurance cover me if a parcel is damaged during delivery?
Damage to a parcel during delivery is a GIT claim, not a motor claim. The GIT policy covers the cargo against damage in transit subject to the policy terms and conditions, including packaging requirements and handling standards. Fragile items, high-value goods, and certain categories may be subject to sublimits or exclusions.
What is the difference between courier insurance and food delivery insurance?
Both require hire and reward motor cover. Courier insurance (parcel delivery) typically combines H&R with GIT for the parcels being carried. Food delivery insurance (Deliveroo, UberEats) typically uses PAYG H&R cover layered over an existing SDP policy, without GIT (food is not cargo that is claimed for in the same way). The risk profile and platform requirements differ between the two.
Can I get courier insurance for an electric van?
Yes. Electric vans (including those used for last-mile courier delivery) are insurable under standard courier insurance. Premiums may differ from petrol/diesel equivalents due to different theft risk and repair cost profiles. Battery replacement costs are a consideration for comprehensive cover - check the policy terms for how EV battery damage is handled.
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