Courier insurance has to follow a working day that looks nothing like private driving: stop after stop, doors opening and closing, parcels changing hands, and a van that is rarely parked for long. A private car or van policy is not designed for that. This guide covers what couriers and last-mile delivery drivers typically need, and the conditions that catch them out. For the vehicle itself, start with our van insurance page.
The Vehicle and Its Declared Use
The use on your policy has to match what the vehicle does. Delivering parcels for payment is a business use, and depending on the insurer’s categories it may be described as courier, delivery, or carrying goods for hire and reward. A van or ute insured for private or general business use may not respond as expected while it is doing paid deliveries. Our guide to hire and reward vs private use explains why the description matters at claim time.
- Vans and utes. Declare shelving, racking, canopies, signage and cargo barriers as accessories.
- Cars used for deliveries. A private car policy may exclude or restrict delivery use. Check the wording before taking on delivery work in the family car.
- Basis of cover. Consider whether market or agreed value suits a vehicle that is also your income.
- Replacement vehicle. Some policies offer a hire vehicle option after an accident. For a courier, a week off the road can cost as much as the repair.
Keys, Engines and Unattended Vans
This is the condition that catches couriers. Motor policies commonly exclude or restrict theft when the keys are left in or on the vehicle, or when the vehicle is left unlocked or running while unattended. Running a parcel to a front door with the engine idling can put a later theft claim at risk. Goods in transit policies commonly carry similar conditions for goods left in an unattended vehicle.
- Take the keys at every stop, however quick.
- Lock the load area whenever you walk away.
- Check any overnight conditions for goods left in the vehicle.
Courier Insurance for the Goods You Carry
Goods in transit insurance can respond to loss of or damage to the goods you carry, subject to limits and conditions. For couriers, the details matter:
- Per-consignment and per-vehicle limits. A van full of small parcels can add up to a large total value. Set the per-vehicle limit on your fullest day, not an average one.
- Excluded goods. Cash, jewellery, phones, laptops, tobacco and alcohol are commonly excluded or limited. Know what the platform or customer asks you to carry.
- Basis of cover. Legal liability cover pays only where you are responsible for the loss. Cover on the goods themselves can respond regardless of fault.
- When transit ends. Once a parcel is delivered, including under an authority to leave, it is generally out of your hands and outside the transit cover.
- Theft conditions. Visible signs of forced entry are commonly required for theft from a vehicle.
Freight Platform and Contract Requirements
Courier platforms, freight companies and retailers that engage owner-drivers commonly ask contractors to hold:
- Comprehensive motor insurance on the vehicle, with the right use description.
- Goods in transit cover to a set limit, or confirmation that the platform’s own cover applies.
- Public liability to a set limit.
- Personal accident cover, where the contractor is not an employee.
- A current certificate of currency, updated at each renewal.
Read the contract’s insurance clause carefully. Platform terms can make contractors responsible for an excess, or for losses the platform does not recover from its own insurance. Match your policies to the contract, and keep your certificate of currency current, because an expired certificate may pause your access to work.
If you work for more than one platform, each contract can ask for different limits and different wording. Set your cover to meet the highest requirement, and keep a note of which certificate went to which platform and when.
Drivers
- Additional drivers. If a partner, family member or employee drives the van on your runs, check they fall within the policy’s driver terms.
- Age and experience excesses. Younger or less experienced drivers commonly attract an additional excess.
- Handing over a run. If another driver takes a run, their licence, vehicle and insurance need checking, and your platform contract may not allow it at all.
- Licence records. Keep copies of driver licences and check them periodically.
Liability at the Delivery Point
Delivery points are where couriers come into contact with the public and with other people’s property. Which policy responds depends on what happened:
- Vehicle-related damage. Reversing into a gate, letterbox or parked car is generally a matter for the motor policy’s third party property section.
- Non-vehicle damage. A trolley scraping a timber floor or a dropped parcel breaking a glass door may fall under public liability insurance.
- Injury. A customer hurt by a parcel or trolley, or a person tripping over goods left on a path, is a liability exposure.
- Loading docks and shopping centres. Sites commonly ask for a certificate of currency for public liability before granting access.
Motor third party property sections and public liability policies each have exclusions designed to push certain events to the other. Loading and unloading is the grey area between them, so ask your broker how your two policies deal with it.
Your Own Income
An owner-driver who cannot drive earns nothing. Personal accident and sickness insurance can pay a weekly benefit after an injury or illness, subject to waiting and benefit periods. Lifting parcels and stepping in and out of a van all day is physical work, and a back or knee injury can keep you off the road for weeks.
Check the occupation on the policy describes courier or delivery driving, and that the weekly benefit reflects your income after vehicle costs.
Keeping Records That Help a Claim
- Delivery photos and time stamps from the platform app.
- Manifest or run sheets showing what was on board.
- Dashcam footage, saved before it is overwritten.
- Police event numbers for theft or break-ins.
Common Questions
Does my personal car insurance work for food or parcel deliveries?
Not necessarily. Private policies can exclude or restrict delivery use. Check the wording and tell your insurer about the work.
A parcel went missing after I left it at the door. Is that my loss?
That depends on the delivery instructions, the platform’s terms and when your transit cover ends. Keep the delivery photo and time stamp.
Do I need goods in transit if the platform has its own cover?
Possibly not, but check what the platform’s cover does, what excess applies and who pays it. Ask for the terms in writing.
Talk It Through
Request a quote or call 1300 983 940 and we will check your vehicle, goods and liability cover against the contracts you work under. More on van insurance.
General advice only. This article does not take your objectives, financial situation or needs into account. Consider the relevant PDS and Target Market Determination before deciding on a policy.