Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
If you deliver parcels using your car, van, or motorbike, standard personal motor insurance won’t cover you. Courier work requires specialist insurance that reflects commercial use. Delivering without the right cover can void your policy, lead to prosecution, and leave you personally liable for damages.
What Insurance Do I Need to Deliver Parcels in My Car?
Delivering parcels in your car requires the same specialist cover as van drivers. Personal car insurance explicitly excludes commercial delivery work, regardless of whether you’re driving for Amazon Flex, Evri, DPD, or as a self-employed courier.
You’ll need:
- Hire and reward motor insurance
- Goods in transit cover
- Public liability insurance (often required by courier platforms)
The vehicle type doesn’t change the legal requirement. What insurance do I need to deliver parcels with a van? covers the specifics for larger vehicles, but the core principles remain identical.
Hire and Reward Insurance
Hire and reward cover is the minimum legal requirement for delivering parcels for payment. It extends your motor insurance to cover carrying goods commercially, whether you’re self-employed or working through platforms like Evri, DPD, or Yodel.
Without this cover, your insurer won’t pay any claim that occurs while you’re working, even if the accident itself had nothing to do with your delivery activity.
This differs from standard business use, which typically covers activities like driving to meetings or visiting suppliers. Personal policies don’t extend to courier work, regardless of what other business activities your policy allows.
Do You Need Business Insurance for Evri?
Yes. All Evri drivers must have hire and reward insurance that covers courier work. Evri requires proof of appropriate cover before you can start delivering, and they may request updated certificates periodically.
The same applies to all major courier platforms. Amazon Flex, DPD, Yodel, and other networks require specific insurance that covers the commercial nature of delivery work.
Goods in Transit Insurance
Hire and reward covers your vehicle and third-party liability. It doesn’t cover the parcels you carry. If goods are damaged, lost, or stolen while in your care, goods in transit insurance covers your liability to the sender or recipient.
Most courier contracts require this cover. Many platforms won’t onboard drivers without proof, and you may be personally liable for lost or damaged items without it.
Common claims include:
- Theft from your vehicle
- Damage during loading or unloading
- Items lost during delivery
- Parcels damaged in accidents
Policies typically offer £1,000 to £10,000 per load, with higher limits available for valuable consignments. Check your contract terms carefully. You could be liable for the full value of lost goods if underinsured.
Do delivery drivers need extra cover for the goods they carry? explains this requirement in detail.
Public Liability Insurance
Public liability insurance protects you if someone is injured or their property damaged as a result of your work.
Examples include:
- A customer tripping over a parcel you left
- Damage caused while accessing a property
- Injury to someone helping you unload
While not always legally required, most courier platforms and contracts demand public liability cover with minimum limits of £1 million or £2 million. It’s particularly important if you enter commercial or residential premises during deliveries.
Employer’s Liability Insurance
If you employ or subcontract other drivers, you’re legally required to hold employer’s liability insurance with minimum cover of £5 million.
Sole traders and owner-drivers working alone don’t need this cover. However, if you expand or bring in help, you must arrange it before they start work.
Personal Accident and Income Protection
These are optional but worth considering if you’re self-employed. Personal accident cover pays a lump sum or weekly benefit if you’re injured and unable to work. Income protection provides longer-term support if illness or injury prevents you from earning.
Courier work carries physical risk, from road accidents to manual handling injuries. Without statutory sick pay or employer support, time off work can quickly create financial difficulty.
What to Check Before Buying
Before committing to any policy, confirm:
Use class: Ensure the policy includes hire and reward or courier use. Some policies state “business use” but exclude delivery work.
Goods in transit limits: Match cover limits to the value of parcels you typically carry. Underinsuring exposes you to significant financial loss.
Excess levels: Check what you’ll pay when claiming. High excesses reduce premiums but increase out-of-pocket costs.
Platform approval: If you work for a specific courier company or app, confirm your policy meets their minimum requirements. Some platforms require named coverage or specific endorsements.
Multi-drop or single-drop: Some insurers differentiate between delivery models. Multi-drop work (numerous stops per shift) is often seen as higher risk.
Geographical limits: Most UK policies cover Great Britain and Northern Ireland. If you deliver across borders or into the EU, check your policy extends appropriately.
No claims discount protection: Courier drivers are on the road more than most. Protecting your no claims bonus helps manage future premium increases.
Common Mistakes to Avoid
Keep proof of delivery records and photographic evidence. In disputes or claims, contemporaneous evidence can determine whether a claim succeeds or fails.
If you use your vehicle for both personal and courier work, ensure your policy covers both uses. Some insurers offer hybrid policies; others require separate arrangements. Mixing uses without declaring them can invalidate your cover entirely.
Drivers switching between platforms or taking ad hoc work should inform their insurer of any change in activity. Your risk profile shifts depending on goods carried, areas covered, and work volume.
Finally, consider breakdown cover that reflects your working pattern. Standard roadside assistance may not prioritise commercial drivers, and being stranded mid-route results in lost earnings and missed delivery windows.
Get the Right Cover Today
Delivering parcels requires more than just a vehicle and a willingness to work. The right insurance protects your livelihood, keeps you legal, and ensures you’re not left exposed when things go wrong.
Use the button on screen to get a tailored quote that covers your specific delivery work.