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Courier Insurance in the UK: Everything You Need to Know to Stay Legal and Covered in 2025

  • Writer: Lindo Mavuso
    Lindo Mavuso
  • Jul 17
  • 9 min read

Updated: Sep 2

Courier Insurance

Let’s be honest.

Whether you’re delivering packages for Amazon, food for Just Eat, or running your own fleet of vans — navigating courier insurance in the UK can feel like a maze.

One minute you’re driving a standard car. The next? You're technically operating as a commercial courier — and suddenly your personal insurance doesn’t count anymore.

What’s worse? If you're caught delivering without proper cover, you're not just risking fines or points on your licence…

You’re risking having your vehicle seized on the spot.

Sound familiar?

If you’re:

  • A self-employed courier

  • A food delivery driver for Uber Eats or Deliveroo

  • A business owner managing a fleet of vans

  • Or someone just starting a side hustle in delivery…

This guide is your new best friend.

Here’s what we’re about to unpack — no jargon, no filler:

  • What courier insurance actually covers (and what it doesn’t)

  • The legal must-haves for delivery drivers in 2025

  • How much you’ll actually pay — with examples

  • The difference between goods in transit, hire & reward, and public liability

  • How to avoid the common mistakes that get courier vehicles impounded

Whether you're driving solo or managing a team, this is everything you need to stay compliant, stay protected, and stay on the road.

Let’s dive in.

What Is Courier Insurance and Who Needs It?

Here’s the deal:

If you're using your car, van, or motorbike to deliver goods for payment — even just part-time — then you need courier insurance.

Not “nice to have.”

Not “something to sort later.”

Legally required.

The moment you start transporting items for work — whether it's food, parcels, or even medical supplies — your standard car or van insurance becomes invalid.

That’s where courier insurance comes in.

Why Your Normal Car Insurance Doesn’t Count

Let’s say you’re delivering for Just Eat on weekends using your personal car. You’ve got fully comp insurance. Seems fine, right?

Wrong.

Most private vehicle policies exclude ‘hire and reward’ — the legal term for carrying other people’s goods in exchange for money. If you get stopped while on a delivery run and you don’t have the right policy?

  • Your car can be seized on the spot under Section 165 of the Road Traffic Act.

  • Your licence could get 6–8 penalty points.

  • You could be personally liable for any damage or injury.

Who Exactly Needs Courier Insurance?

If any of these sound like you, you’re required to have courier-specific cover:

  • Self-employed parcel couriers

  • Delivery drivers for Amazon, Hermes, DPD

  • Food delivery drivers (Uber Eats, Deliveroo, Just Eat)

  • Same-day delivery couriers

  • Fleet owners running multiple vehicles

  • Medical supply drivers or contract-based couriers

  • Taxi drivers delivering items as part of service (secondary risk)

In short: If you’re moving items for someone else and getting paid, you need a courier insurance policy that includes:

  • Hire & Reward

  • Goods in Transit

  • Public Liability (optional, but strongly advised)

Bonus: UK Sure Offers Add-On Protection Too

Need extra cover? You can bolt on:

  • Breakdown cover

  • Excess protection

  • Legal expenses All available through UK Sure's Bolt-Ons — tailored specifically for couriers and delivery professionals.

Legal Requirements for Courier Drivers in the UK

If you’re making deliveries for money — even just one parcel or one takeaway — the law says you need specialist insurance.

Not optional. Not “grey area.”  Courier insurance is a legal requirement.

Failing to get proper cover puts you at serious risk of:

  • Vehicle seizure

  • Fixed penalties and court summons

  • Claims being rejected if you're in an accident

Let’s break down exactly what the law expects from courier drivers in 2025.

1. Hire & Reward Insurance (Legally Required)

This is the bare minimum. It covers you to carry goods that don’t belong to you, in exchange for money — i.e. the very definition of being a courier.

If you’re driving without hire & reward and you're caught? The police will treat you like you're uninsured. That means:

  • Instant impound

  • Up to £300 fine

  • 6–8 points on your licence

  • Possibly losing your job or contract

Need this added to your existing setup? UK Sure offers standalone hire & reward cover within its Courier Insurance package for both full-time and part-time drivers.

2. Goods in Transit Insurance (Strongly Recommended)

What happens if the packages you’re carrying are lost, stolen, or damaged?

You’re responsible.

That’s why most platforms (including Amazon Flex, Evri, and DPD) require proof of Goods in Transit (GIT) cover — especially if you’re handling high-value goods or fragile items.

GIT insurance protects:

  • Parcels from theft

  • Damage during loading/unloading

  • Lost goods in transit

UK Sure provides this as part of their Goods in Transit Insurance or bundled into your courier policy.

3. Public Liability Insurance (Optional, But Essential)

Let’s say you’re delivering a parcel, and you accidentally damage a customer’s property. Or worse — someone trips over your package and gets injured.

Guess who’s liable?

You.

Public liability insurance covers third-party damage or injury that happens while you’re working.

While not required by law, many businesses and food delivery platforms will ask for it before contracting you. You can add this to your policy through: Courier Insurance Products or Business Insurance Add-Ons.

4. Documentation You Should Always Carry

To avoid fines or delays, make sure you’re carrying:

  • Insurance certificate (showing hire & reward)

  • Vehicle logbook (V5C)

  • Your courier app or contract ID

  • MOT certificate if required

These can help avoid wrongful impounds or disputes during roadside checks.

What Does Courier Insurance Typically Cover?

Let’s say you’ve done the right thing. 

You’ve got a courier policy in place.

But now you’re wondering:

“What am I actually covered for?”

Good question — because not all courier policies are created equal. And if you don’t know what’s included (or missing), you might be in for a nasty surprise when it matters most.

Here’s what a typical courier insurance policy in the UK should include in 2025 — and where UK Sure gives you an edge.

1. Hire & Reward Cover

This is your core legal protection. It lets you carry someone else’s goods for money — the very activity that defines courier work.

UK Sure’s Courier Insurance includes hire & reward as standard, and can be set up instantly, often within the same day.

2. Goods in Transit (GIT) Insurance

Covers loss, theft, or damage to goods while they’re in your care.

It protects:

  • Parcels stolen from your vehicle

  • Fragile goods that get damaged en route

  • Goods lost in transit between depot and drop-off

UK Sure offers standalone GIT cover via Goods in Transit Insurance or bundled with your courier policy for full protection.

 3. Public Liability Insurance

Covers legal fees and compensation if you accidentally:

  • Injure someone

  • Damage property while delivering

  • Cause a slip/trip hazard with parcels or gear

While not mandatory by law, it's required by many employers and smart to have if you deliver to homes or offices.

4. Vehicle Cover Options

Depending on your needs, you can choose:

  • Third-party only (minimum legal cover)

  • Third-party, fire & theft

  • Comprehensive — covering your vehicle as well

UK Sure will tailor this based on whether you’re driving a van, bike, or car. If you're insuring multiple vehicles? Check out their Courier Fleet Insurance packages.

5. Optional Extras That Actually Matter

These are worth considering, especially if you drive long hours or rely on your vehicle full-time:



In short?

Courier insurance should be modular, covering the legal basics with the flexibility to match how you actually work.

How Much Does Courier Insurance Cost in 2025?

We get it.

You want to stay legal, but not break the bank doing it.

So let’s answer the big question:

“How much is courier insurance going to cost me?”

The short answer?

In 2025, most courier drivers in the UK can expect to pay between £1,100 and £2,300 per year for full cover.

But let’s unpack the details — because your actual quote depends on what you drive, where you drive, and how you work.

Average Courier Insurance Costs in 2025 (UK Sure Data)



Get a quote tailored to your setup here: 


What Affects Your Price?

Expect your courier policy to vary based on:


  • Your postcode (urban areas = higher risk)

  • Your vehicle type (van vs motorbike vs car)

  • Your driving history

  • The value of goods you’re carrying

  • Whether you want extras like breakdown or excess protection

  • If you’re self-employed vs fleet-owned


UK Sure’s strength is flexibility. You can bundle services like:


Want to Save Money?


Here are three ways to reduce your premium:


  1. Claim-Free History – The more years you’ve gone without a claim, the lower your quote

  2. Bundle Policies – Combine courier + GIT + breakdown for a discount

  3. Avoid Comparison Sites – Many don’t include hire & reward and reject courier applicants altogether


Real Example:


Let’s say you’re a 34-year-old courier in Birmingham, using a 2018 Vauxhall Vivaro for food and parcel delivery. You’ve got a clean licence and deliver full-time.


Your annual cost at UK Sure (including:


  • Hire & Reward

  • GIT (£10,000 limit)

  • Public Liability (£1M)

  • Breakdown cover


Would typically be £1,785–£1,950, depending on usage and region.


And that includes fast-track documentation to get you delivering within the same day.


Courier Fleet Insurance: What Businesses Should Know

Running a fleet of courier vehicles isn’t easy.


You’re not just managing packages — you’re juggling schedules, drivers, vehicle downtime, and the constant pressure to stay compliant and profitable.


And one of the biggest headaches?


Insurance.


If you’re insuring vehicles one-by-one, manually tracking every renewal, and calling brokers for every driver update… you’re doing it the hard way.


Enter: 

Courier Fleet Insurance from UK Sure — built for small delivery firms, food courier businesses, and growing logistics startups.


Let’s walk through what you need to know.


What Is Courier Fleet Insurance?


It’s a multi-vehicle policy that lets you cover two or more vans, cars, or bikes under a single umbrella — ideal if you:


  • Own a delivery company

  • Employ or contract multiple drivers

  • Operate from multiple service areas

  • Need policy flexibility as your business grows

UK Sure offers fleet cover starting from just 2 vehicles, with scaling rates and add-on options as you expand.


What’s Included in Fleet Cover?


Just like individual courier policies, a good fleet policy should include:


  • Hire & Reward

  • Goods in Transit

  • Public Liability

  • Optional: Breakdown, Legal, Excess Protection

Each driver is either:

  • Named individually, or

  • Covered under an any-driver policy (age-restricted, usually 25+)

UK Sure lets you choose the structure that works best for your business.

Managing Goods Risk Across a Fleet

If your business handles high-value items, fragile goods, or specific delivery SLAs (next-day, medical, etc.), you’ll need to increase your GIT limits.

With UK Sure, you can:

This lets you stay competitive with clients who demand documentation and proof of insurance — especially in B2B courier contracts.

Why Fleet Insurance Is Smarter (and Cheaper)

Compared to insuring 5 vans separately, fleet insurance offers:

  • Lower total premiums

  • Centralised renewal dates

  • Easier driver swaps and updates

  • One broker, one account, less admin

And if your fleet expands to include taxis, special types, or even catering vans — UK Sure’s coverage portfolio includes:

Final Tip for Fleet Operators

The number one mistake growing fleets make? 

Waiting too long to consolidate insurance.


The second?

Trying to manage driver risk without help.

UK Sure can assign a dedicated agent to your business — with bilingual support available for Portuguese, Polish, and Spanish-speaking teams.

What’s the Difference Between Public Liability and Goods in Transit Insurance?


These two get confused all the time.


And it’s easy to see why — both protect you from financial loss as a courier.But they cover very different things.


Let’s make it crystal clear.


Goods in Transit (GIT) Insurance


Covers: The goods you’re carrying


If you’re transporting parcels, packages, or products for work — and they get damaged, stolen, or lost — this is the policy that pays out.


GIT insurance protects:

  • Parcels that go missing in transit

  • Fragile goods broken in the back of the van

  • Items stolen from your vehicle while parked

GIT is often required for couriers working with:

  • Amazon

  • Evri/Hermes

  • Medical or high-value delivery firms

Public Liability Insurance

Covers: Other people and their property

If someone gets hurt while you’re working — or you accidentally damage something at a delivery location — this is the policy that protects you.

Public liability insurance covers:

  • Tripping incidents while delivering

  • Scratched walls or broken doors while carrying parcels

  • Claims made by members of the public

Not legally required, but many companies demand it before you can work with them.


Quick Comparison



Final Thoughts: Your Courier Insurance, Covered

Let’s recap:

If you're delivering goods for money in the UK — whether it’s a single parcel or a vanload every day — you need specialist courier insurance.

That includes:

  • Hire & Reward (it’s the law)

  • Goods in Transit (to protect the items)

  • Public Liability (to protect yourself)

  • Optional extras like Breakdown Cover and Excess Protection

And if you're running a business?Fleet insurance can save you time, stress, and money — all managed under one policy with UK Sure.

Ready to Get Covered?

Get a fast, no-hassle quote for your exact setup — self-employed, part-time, or full fleet.


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