Cheap van insurance for couriers and delivery drivers explained

Insuring a van isn’t as straightforward as it is with a car. For starters, the vehicles are almost always used for business purposes, which adds an additional consideration to the policy, and if you’re using the van in a courier capacity to deliver products then you have to get a special kind of cover. Here’s the lowdown on what you need and how to get it at the best price.

What type of insurance do delivery drivers and couriers need?

If you're planning to use your van for delivery work in return for payment then you'll need an insurance policy for hire and reward for business use. Generally speaking, there are two types of insurance for hire and reward  - haulage and courier - and it's vital that you are honest when answering questions relating to occupation, use of the vehicle and claims history. Failure to do so could result in the insurance company cancelling your policy and refusing to pay out in the event of a claim. 

Haulage Insurance

What’s covered: A haulage policy will typically allow the driver to make single trips in return for payment to deliver a load within the UK or Europe. It should include goods in transit, which covers the load from loss or damage in the event of an accident or theft.

What’s not covered: The van cannot be used for multiple drops. The van cannot be used for domestic or social use. Different drivers cannot use the van for separate businesses other than the main policy holder’s.

If this sounds like you, click here for a van insurance quote*

Courier insurance

What’s covered: A courier policy will cover the driver to make multiple drops of other people’s goods or materials in return for payment within the UK. It should include goods in transit cover, which covers the load from loss or damage in the event of an accident or theft.

What’s not covered: The van cannot be taken outside the UK unless agreed with the insurance provider. The van cannot be used for domestic or social use. Different drivers cannot use the van for separate businesses other than the main policy holder’s.

If this sounds like you, click here for a van insurance quote*

Will one policy cover more than one van?

Only if you agree it with your insurance provider when taking out the policy. There are lots of cover options for small fleets and a good insurer should be able to create a bespoke policy you and your workforce.  

How delivery drivers can lower their premiums and get a lower van insurance premium

When you're buying or leasing, look for vans in a low insurance group.

Get quotes from specialist insurance providers*. There are several offering policies tailored towards courier and haulage drivers. And remember to shop around. Limit the number of named drivers on the policy or restrict it to just yourself. Always be honest with the insurance company. Failing to provide full information could leave you without cover in the event of a claim.

Common mistakes with van insurance

Though hire and reward and goods in transit are the industry-standard terms for the types of insurance that delivery drivers and couriers need, the wording can differ depending on where you’re looking.

If you’re searching for quotes, it’s important to check the exact terminology, as some insurance providers describe couriers as haulers and vice versa. Generally, the term haulage applies to vehicles that are delivering a load to a single destination a long way away, rather than a courier making multiple stops, but the lines can be blurred. The insurance provider should be reasonably clear about this – just make sure you read and understand the description before you go ahead and buy anything. 

The same applies to the policy you end up with – check the small print or contact the provider to make sure you’re getting the right level of cover for what you’ll actually be doing, because as great as a cheap policy is, you don’t want something that’s inappropriate and leaves you uninsured or out of pocket. If you’re unsure, ask the insurer before you buy.

A lot of big delivery companies employ drivers on a casual, short-term basis when they need extra help, such as in the run-up to public holidays. This often involves the employee providing his or her own transport, which could be a van, a car or a different type of vehicle. In this instance, you still need an appropriate level of cover for the task at hand, and a private insurance policy is not sufficient. While the employer should address this, there have been cases where companies have ignored it, effectively rendering the driver uninsured. If you’re in that situation and there’s any doubt whatsoever, then you need to speak to your employer and your insurer.

Anything else I need to know? 

Do not take out a policy unless it has a guaranteed courtesy van if your vehicle is off the road under repair, as it isn’t unheard for a van to be off the road for a couple of weeks while a garage waits for a part or the payment details to be sorted.

Which vans would suit delivery drivers? 

This is a list of three vans that we think are particularly well suited to delivery drivers looking for cheap insurance. Each has been picked for its low insurance and low price.

See also:  Our guide to Cheap Van Insurance for all van owners

Citroen Relay - Insurance group 4E If you’re after a panel van with a lot of space but want to keep your premiums to a minimum, then Citroen could be the answer, as the Relay starts at group 4E. This applies to the entry-level 110PS 2.2-litre HDi engine, and the 30 L1H1 model in standard or Enterprise trim levels.

 

Nissan NV200 - Insurance group 5E The NV200 is unique to Nissan in that it doesn’t share its underpinnings with other manufacturers, as is the case with the NV400 and Primastar. As a result, it’s more car-like to drive, with a very good ride and has a spacious interior. It starts in insurance group 5E for the 90PS 1.5-litre dCi engine in either E or Visia trim levels.

 

Volkswagen T5 Transporter Insurance group 5E The Volkswagen T5 Transporter is among the best-selling used vans, and with good reason, as it's extremely refined and car-like to drive. The T5 starts in insurance group 5E. That gets you a short-wheelbase model with an 84PS 2.0-litre TDI engine, a standard or medium roof and basic, Trendline or Highline specifications.

See also: Top 10 Cheapest panel vans to insure

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