You have a delivery van and you know you have to insure it for 'hire and reward' use but like the rest of us you probably resent it - after all insurance is a ripoff isn't it? However (a) you have to have it and (b) it really can save your business one day!
You know that in the UK, it's a legal requirement to have at least third-party insurance cover for your van, and that you need extra insurance for delivering goods that you don't actually own (and get paid for delivering). However there is a world of difference between taking a burger to a hungry student down the road for Deliveroo and doing dozens of heavy parcel drops a day over a wide area for distribution companies like TNT, Yodel, Hermes, UPS etc. Different again is collecting a load for delivery to a single location, perhaps a considerable distance away; typical examples are bulk deliveries to supermarkets, or goods taken from manufacturers to major distributors.
The insurers (bless their hearts) know that every type of delivery, and every cargo, is different, with unique risks; so most of them will specify exactly what can be carried. Even a taxi driver picking up a curry for a customer that has just been dropped off at home could be uninsured; so it is vital that:
- You have insurance that covers you for deliveries
- It is the right insurance for the kind of deliveries you do, and the type of goods you are going to carry.
How much does delivery van insurance actually cost in the UK?
Well, it depends on a range of factors; such as the type of van you have, how old it is, how you use it, what you carry in it, where you deliver to. According to recent research by a certain price comparison website the average cost of van insurance in the UK is £1,211 per year; but since this figure can vary wildly it can be taken with a pinch of salt. However, there are factors that have a huge effect on it, such as:
- Your location. Insurance providers will look at things like crime and accident rates in your area when calculating your premium. The more it costs the insurer, the more they will charge you.
- Where you will be delivering. You might live in a quiet country town (so your own car insurance is cheap - well done!) but if the bulk of your deliveries are in busy city centres your premium may well be eye watering.
- What time of day most of your deliveries will be at. Pity the fast food delivery guys; a lot of their work is at evenings and weekends (when accident rates are much higher than usual) so premiums reflect this.
- What you will be carrying. A few mail order parcels is one thing; urgent or time-sensitive deliveries are a different matter since pressure to keep to schedules can result in more accidents.
- Your driving history. Lets face it, people who never break speed limits are as rare as rocking horse droppings but get caught too often and premiums can skyrocket. And, seriously, too many people are injured or even killed by van drivers who are just trying to earn a living but doing it a bit too fast. Keep within limits and not only will you (and other road users) be much safer but you could keep your insurance costs at a reasonable level too.
- What excess you pay on your insurance policy. As you know this is the amount of money you'll pay yourself towards any claim before your insurance kicks in; and it can make a lot of difference to a premium. It's important, though, to make sure you can afford to pay this excess if necessary; remember that the wily insurers usually have both a compulsory excess as well as the voluntary one, and together they could add up to a large proportion of the average payout. Who wants to pay most of an insurance settlement as well as lose a no-claims bonus?
Does hire and reward insurance cover the goods I deliver as well?
What you are referring to is 'Goods in Transit' cover; you may want to get this as well, in case any of your cargo is damaged, lost, or stolen by some low life or other. Whoever you deliver for may insist on you having it anyway.
Goods in transit cover is often bundled with hire and reward insurance which may save you a bit of money, but make sure that it is suitable for your own unique needs; a 'cover-everything' standard policy is often nothing of the kind really.
How can I find the best deal on delivery van insurance?
Well, for a start you could click the button and get quotes via our partners Prudent Plus. There is an option of getting them online; do bear in mind though that not all van insurers offer delivery driver (hire and reward cover) so you might also want to try option (1) and a panel of specialist brokers will be invited to send you quotes. Why not try both options? After all it costs nothing to ask!