Find out how much courier van insurance costs, the options that are available and how to get started with your quote.

When you’re ready to hit the road as a courier driver whether it’s parcels for Amazon Flex, food for Just Eat, or multi-drop jobs for Stuart your standard Social, Domestic & Pleasure (SD&P) van insurance won’t cover you for paid work. You need Hire & Reward (H&R) insurance to stay legal and protected. Without it, you risk a £300 fine, 6 points on your licence, and unlimited liability for accidents [1].

This 2025 guide gives you the full picture: average costs based on real market data, key factors driving your premium, types of cover available, seven ways to save money, and how to get a Zego quote in under a minute.

How Much Does Courier Insurance Cost?

Zego's courier van insurance annual insurance prices start from £1,120.75 based on 10% of Zego customers who paid this amount or less in the six months prior to 23 July 2025.

For the UK as a whole based on Q3 2025 data from over 50 UK insurers, the average cost for comprehensive courier van insurance ranges from £1,450 to £2,150 per year for a typical 5-year-old Ford Transit [2]. That’s about £120–£180 per month, but your profile can push this up or down significantly.

Here’s how costs break down for common driver scenarios:

• Experienced driver (35+, clean record, <10k miles): £1,450/year (Ford Transit Custom)
• Mid-range driver (25–34, 2+ years no-claims): £1,800/year (VW Transporter)
• New/young driver (<25, urban area): £2,500–£4,000/year (Citroën Berlingo)
• EV/hybrid driver (low emissions): £1,300/year with Zego EV discount (Nissan e-NV200)

Source: Aggregated from SimplyQuote, NimbleFins & GoCompare Q3 2025 [2][3][4]

Young drivers or those in high-risk areas like London face premiums up to 40% higher [5]. Comprehensive cover, which includes repairs to your van, costs £641 more than third-party only (TPO) but saves you from footing the bill after a crash [3].

To see your exact cost, check out our courier van insurance quote tool for a personalised price in 60 seconds.

How Can I Get Cheaper Courier Insurance?

There are several ways to reduce your insurance costs:

• Compare quotes from multiple providers
• Opt for a higher voluntary excess
• Pay annually instead of monthly
• Install telematics to monitor driver performance
• Operate in lower risk areas away from cities
• Choose a safer, popular van model
• Select an older, lower value vehicle

What Factors Affect Courier Insurance Costs?

Your premium is based on your unique risk profile. Here are the top six factors insurers consider in 2025:

Age and Driving Experience Drivers under 25 pay £2,500–£4,000 compared to £1,500 for those over 35 [6]. A clean licence with 2+ years no-claims discount (NCD) can cut costs by 20–30%.

Van Type and Value Smaller vans like the Fiat Ducato (Group 10–15) save £300 compared to larger models like the Mercedes Sprinter (Group 20+) [7]. EVs qualify for Zego’s 10% discount [8].

Mileage and Delivery Area Driving under 10,000 miles/year saves 15%. Urban postcodes like London add £400 due to traffic and ULEZ risks [5].

Claims History and Violations One at-fault claim increases premiums by 25%. A single speeding ticket can add £500 [9].

Overnight Parking and Security Parking in a garage saves £100–£200. No alarm or tracker? Expect a 10% premium hike [10].

Goods Type and Cover Level High-value parcels (e.g., electronics) add £200–£500 for Goods in Transit cover [11]. Comprehensive cover costs £641 more than TPO [3].

Why Do I Need Special Courier Insurance?

You can't rely on your standard personal or van insurance policy to cover delivery work. By law, you need specific courier van insurance designed for multi-drop deliveries. This covers you for business use picking up and transporting parcels, packages, food, and more between destinations.

Without proper courier insurance, you are fully liable for any damages or injuries caused in an accident. You also risk financial penalties and legal consequences for driving uninsured. Specialised policies protect you and your business.

Types of Courier Insurance

There are three main types of coverage to consider:

Courier Van Insurance

Is required to cover your delivery work, this is specifically for multi-drop deliveries. Get quotes for TPO, TPFT, or comprehensive protection.

Goods in Transit Insurance

Covers items you transport against theft, loss, or damage. This protects your customers' goods and your business. It's recommended but not legally mandatory.

Public Liability Insurance

Provides coverage if you cause injury or property damage to others while working. Protects you from liability claims. Also advised but not compulsory.

What else can I add to my policy?

Our optional extras include things like Goods in Transit insurance and No Claims Discount (NCD) protection if you’re looking to increase the amount of protection you get from your policy. Our NCD protection is charged at a rate of 7% of your overall premium.

How can I get a quote with Zego?

Simply head to our courier van insurance page and enter a few details about you and your van. We'll give you a personalised price right away. Our policies are available at different levels of cover too, so you can get as much protection as you need when you’re out on the road.

References

[1] DVLA Driving Without Insurance Penalties 2025
[2] SimplyQuote Van Insurance Averages Q3 2025
[3] NimbleFins Commercial Vehicle Report 2025
[4] GoCompare Courier Insurance Data 2025
[5] ABI Urban vs Rural Premium Analysis 2025
[6] SimplyQuote Young Driver Premium Data 2025
[7] ABI Van Insurance Group Ratings 2025
[10] GoCompare Parking and Security Factors 2025
[11] NimbleFins Goods in Transit Pricing 2025