Courier Insurance: Top 10 Tips For Getting Cheaper Cover

Courier Insurance: Top 10 Tips For Getting Cheaper Cover

This is a good time to be courier. The UK’s love affair with online shopping – a sector that’s now worth over £145bn – has driven demand for couriers and express delivery services to an all-time high. Here at Coversure Grantham – Grantham’s leading independent insurance brokers – we’ve seen a steep rise in the number of drivers calling us for cheap courier insurance quotes. From traditional owner-drivers and self-employed couriers looking to cover their vans, to ‘lifestyle couriers’ looking to upgrade their car protection so they can work legally, we’ve seen and helped them all.

The Courier Boom Continues..

This surge in courier quote requests is to be expected. According to a recent report by Mintel,* the UK’s delivery service market grew 12% in 2018 to £12.6bn which represents growth of 62% over the past 5 years*. And with UK’s online shopping market to predicted to grow even faster in the coming years as more and more shoppers leave the High Street, the boom will only have just begun and firms can look forward to double-digit growth for years to come…

Of course, it’s far from easy out there. As any driver will tell you, competition for work is stiff, margins are low and to make it viable a typical driver has to get between 150-200 parcels a day to customers’ doors. This makes life pressured, stressful and the need to cut costs and save time has never been greater.

To help you save time and money getting the cover that’s right for you; here’s Coversure’s comprehensive guide to courier insurance. In it we’ll give you our top ten tips for getting cheaper courier insurance and we’ll guide you as to what cover you need.

So, how can you cut your courier insurance quotes…?

Ten Ways to Cut Courier Insurance Costs

  1. Get a telematics device installed – telematics systems – electronic devices that track a vehicle’s whereabouts and how’s it being driven – are increasingly being considered by insurers when it comes to assessing risk. These devices can not only help if a vehicle is stolen by making finding it easy, studies in the US have proved that they can reduce accident rates and improve driver safety as when drivers know they are being monitored they drive more carefully
  1. Add extra security – delivery vehicles are an attractive target for thieves. With drivers often having to leave their vans unattended while they make a delivery, opportunist thieves can easily make off with goods and or vehicle. Van thefts in the UK have risen 45% in the last four years according to the police which can make them an uncomfortable risk for insurers. You can help combat this by adding extra security such as extra locks, trackers and internal cameras
  1. Fit a dashcam – in any motor accident the advice is always not to admit fault. But what if you could prove it wasn’t down to you with video footage? Again, it’s been shown that drivers with a dashcam tend to drive more safely as they know they are being monitored
  1. Consider a higher excess – raising your excess – the amount you pay in the event of a claim – can help reduce your premiums. So, if you have a good claims history – i.e. few – then this can be a good option
  1. More than one vehicle? Get courier fleet insurance – if you have 2 or more vehicles that you use for deliveries – be they vans, cars, motorbikes or trucks – then you could save time and money by taking out courier fleet insurance. With potentially lower cost-per-vehicle premiums and only having one policy to administer, this can save you money and time
  1. Pay annually – while it is convenient to pay in instalments, you may pay less if you pay in one lump sum
  1. Check your policy carefully – standard policies can often make provision for a wide range of eventualities – such as the carrying of hazardous goods or European cover – and if these aren’t relevant to you then why pay for them? Take the time to you check what you are getting or ask your broker to check for you
  1. Consider your drivers – as with any motor policy, insuring young drivers can be seen as risky business. Legally you can become a courier as soon as you pass your test, but you’ll find many insurers won’t be keen to take on drivers under the age of 25
  1. Find somewhere secure to park your vehicles overnight – unlit side streets and unprotected yards are an open invitation to thieves, so find somewhere secure to park up overnight. A garage, off-street parking or better still a patrolled or CCTV monitored compound will all give insurers less to worry about
  1. Always use an insurance broker – yes, we would say that, but it’s true. Coversure Grantham can not only save you time by doing the shopping around for you, we can use our industry expertise to find you the right policy at the right price

What Cover Does A Courier Driver Need?

That may sound like a silly question – courier insurance, duh – but there are quite a few options available. Also, did you know that if you are a part-time or ‘lifestyle courier’ using your own vehicle that you still need a courier insurance policy? A lot of people don’t and they get a nasty shock when they come to make a claim only to find their policy won’t pay out.

So, what do you need? Here’s a quick guide:

  • Vehicle insurance – your vehicle – be it a car, van, truck or motorbike – is a business essential so it pays to get good quality cover for it – after all, this is your livelihood as well as your means of getting about. When taking out delivery vehicle insurance you’ll be faced with a range of additional options, including:
  • Goods in transit Insurance – this is a really helpful option. It means that should your customers’ goods be damaged while being delivered, you won’t be left financially liable for their repair or replacement. It’s worth checking what’s covered by your goods in transit policy as some come with exclusions as to what you can carry. These exclusions typically include things such as:
  • Livestock
  • Hazardous goods
  • Human remains
  • Items moved during a house move
  • Fragile goods – glass, wine, lap tops etc.

You’ll also want to check the level of cover that’s available. Some insurers will only provide partial cover for certain valuable items which they deem to be ‘theft-attractive goods’ – mobile phones or tablet computers for example.

If you routinely carry items such as these and you’d like comprehensive goods in transit protection then call Coversure Grantham on 0800 308 1020 and we’ll be happy to help you get the cover you need.

  • Uninsured Loss Recovery – this covers you against any uninsured loss. In other words, it allows you to reclaim any lost earnings, excesses and other out of pocket expenses you incur should you be involved in any non-fault claim
  • Legal Protection – motor legal protection cover gives you extra cover should you be involved in an accident that leads to ongoing legal action
  • Breakdown Cover – as we’ve said, when you’re a courier your vehicle is your business and knowing that in the event of a breakdown that someone will come out and get you back on the road makes great sense
  • Variable Excess – in the same way that having a higher excess – the amount you pay in the event of a claim before your insurer pays out – on a car or fleet vehicle can lower your premiums, choosing a higher excess on your courier policy can also save you money. It’s really worth considering if you or your courier company has a good claims record
  • Protected No Claims Bonus – this works in the same way as your protected no claims works on your car or van insurance, and saves you losing your no claims bonus in the event of a claim
  • Public Liability Insurance For Couriers – it’s hard to overestimate how important this could be for a courier. On a day-to-day basis, you will come into contact with members of the public and that brings risks of injury, accident or damage to their property. With public liability insurance in place, you’ll be financially protected should something go wrong and you end up facing legal action
  • Employers’ Liability – Employers’ Liability Insurance – this is a legal requirement for any business that employs people and it needs to have at least £5m worth of cover in place. This add-on will protect you should you be sued by any of your employees. In the case of couriers, the liability insurance waters are muddied somewhat by the fact that if you are a sub-contractor and have self-employed drivers working for you then they are not technically employed by you. This is something of a grey area and our recommendation would always be to get some advice by calling us on free on 0800 308 1020

Like Some More Courier Insurance Help? Contact Us Today!

We hope this guide to courier insurance has been of use. If you would like some independent insurance advice that’s tailored to your business’s needs then please get in touch. You can call us free on 0800 308 1020, email Coversure Grantham here cor get a no-obligation courier insurance quote here.

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