Hauliers & Couriers Insurance

How much Haulier and Couriers Insurance?

The cost of quotes depends on risk factors.

The risk factors that will be taken into consideration when quoting you for hauliers or couriers insurance cover are:

• Engine size and total weight of loaded vehicles. Unless previously agreed, containers or trailers attached to the vehicle could void your policy. Detached trailers might not be covered at all.
• Age and number of drivers and whether or not the drivers are named on the policy. 'Any driver' increases the risk. Another question insurers will ask is whether drivers have previous motoring/other criminal convictions. If the answer is yes, the cost to insure them will be higher, while some insurers will refuse to cover them at all. Drivers under 25 will incur a higher excess.
• If you carry goods, then the type of goods can have a major impact on cost e.g. perishable foodstuffs, bottled gas, flammable solvents.
• Ownership of goods in transit i.e. do the goods belong to the vehicle owner or are you a courier of another company's goods? (If it's the latter - you need courier insurance, also known as Hire and Reward or Haulage cover.)
• Alterations/additions to vehicles such as alloy wheels, lifting ramps, winches or hoists.
• Whether the vehicles are right hand drive or imported to the UK.
• Poor claims history
• Your attitude to risk and risk management

The good news is that there's a lot you can do to make sure your premiums are reduced.

How to get cheaper road hauliers insurance

• Go for smaller vehicles - the smallest weight and engine size possible for your purposes. Larger engine capacity is viewed as a hazard.
• Trailer cover - make sure the policy covers the trailer while unattended or detached from your unit. Not having this cover is a false economy and could cost you dear.
• Restrict your geographical area. You'll get a discount if use is limited to the UK mainland. You'll pay more for European destinations, and more again for Italy.
• An 'any driver' policy costs more, so limit the number of drivers to save money.
• Take out membership of a relevant association for discounted insurance, free advice, etc - eg, ACFO, Freight Transport Association, Road Haulage Association.
• Keep vehicles well maintained and drivers fully trained
• Produce and promote informative literature - eg drivers' guide clearly stating responsibilities, driving rules and regulations.
• Nowadays most new vehicles have anti-theft devices such as immobilisers and alarms as standard. Aftermarket 'Thatcham' approved systems are more likely to earn additional discounts.
• Keep vehicles in a secure locked garage or off the road.
• The older the driver, the more experienced, therefore the lower the premium - drivers over 25 and under 65/70 are cheaper to insure.
• Increase the voluntary excess payable, ie, the amount of money you agree to pay out in the event of a claim. The higher the excess, the cheaper the premium.
• Don't store tools/equipment/goods in vehicles. Ensure high security of warehoused goods.
• Declare no claims bonus and transfer drivers' no claims bonus to vehicles. You could get 20 - 60% discount for no claims bonus earned on a previous haulage insurance policy. If you're an experienced HGV driver with a proven record of claim free driving claim-free record looking to insure your own unit, ask for a decent no claims discount against your premium.
• Keep your drivers. A high driver turnover will not generate confidence in an insurer, and there may be more insurance administration costs as a result
• Limit what you use vehicles for, eg, no hazardous or toxic materials
• Put signage on vehicles to reduce the risk of theft
• Locate your business outside of urban and high crime areas.
• Don't allow ignition keys to be left in vehicles
• Poor driver history? Previous convictions will increase premiums
• You'll earn discounts for low mileage
• Comply with strict Health & Safety guidelines, particularly so if you are involved in ferrying hazardous goods on the public highway
• Be clear about fees - how much commission are you being charged for the service?
• Buy online - you can save up to 10% on the premium

Good Fleet Management

• The better managed your vehicle operation, the fewer accidents and claims costs. If claims increase, premiums increase. Good management will help cut the number and cost of claims.

• Large vehicle operators employ their own managers to do the job, while small to medium-sized outfits can hire the services of a fleet management company - ask your insurer to recommend one.

Safety First

Any vehicle that's used by a business, regardless of whether it's owned by the company or an individual, is considered a place of work. You must therefore comply with current legislation including:

• Health and Safety at Work Act 1974
• Road Traffic Acts
• Working Tine Regulations 1998
• Management of Health and Safety at Work Regulations 1999
• The Human Rights Act

You must have proper working practices in place, with regular risk assessments of drivers, vehicles and operating procedures, and keep a written record.

Cheap Courier Insurance

Some insurers offer 'Light Haulage' insurance instead of 'Courier' insurance for vehicles, and this could work out cheaper. But the number of drops you can do in a day are restricted and some delivery companies won't give you any work if you're not covered for hauliers/haulage insurance.

Cheapest can be Expensive

Cheapest isn't always best. A low-priced policy usually means less cover with many policy restriction. Make sure you know what glass cover, breakdown, replacement/courtesy vehicle are available.

Self Employed

If you're a new owner driver (you're considered as an owner driver if you lease the vehicle(s) for your business), ask about cancellation penalties. If you go out of business in the first few months, you don't want to have to pay a year's worth of insurance.

Direct Debit Options

Most insurers offer a monthly payments option. Interest free is best, but if that's not available, check out the set-up charge/interest payments before signing on the dotted line.

Fixed Rates to manage Costs

Look around for a fixed rate deal for your premium - for 2 years, say. You don't want to buy a policy that's going to rocket in price by 40% or more the following year.

What you Need

Commercial vehicle insurance - Comprehensive, Third party, fire and theft or Third party only

Goods in Transit

A Haulage Vehicle insurance policy won't cover the goods you carry - this is covered by a separate insurance policy called 'Goods in Transit' insurance. As a haulier or a courier, you must insure the goods that you are carrying while they're in transit.

There are two types of use under a haulier or courier insurance policy - carriage of goods for hire and reward, or carriage of your own goods.

Hire and Reward insurance cover - this is for operators who use their vehicles to carry goods for others and are paid by them to carry the goods.

Carriage of own goods insurance cover - this is for operators who use their vehicles to transport their own goods or to deliver their own goods to customers. They do not receive payment from others to carry the goods.

The Goods in Transit policy will cover:

• Loss while in transit
• Theft while in transit
• Damage caused by accidents during transit
• Other damage caused during transit

Most policies will include cover under the Road Haulage Association (RHA) terms of cover for the UK, ie, a maximum limit of liability per metric tonne.

For the owner of the goods, it's rarely adequate. Most will take out their own cover in the event the haulier wasn't negligent and their insurance won't pay out. More and more owners of goods are demanding higher levels of cover for their goods by hauliers transporting them.

Certainly own goods insurance cover gives you more control, plus you don't have the admin burden of having to check each haulier's insurance arrangements.

If the goods are imported from outside the UK then the European CMR conditions of carriage come into play. CMR terms demand higher limits of cover - usually £250,000 per load.

If you use sub-contractors, check their cover level, too. The ultimate responsibility lies with you, the contractor, to make certain that the right insurance is in place. Quite often, a Goods in Transit policy will cover this potential loophole.

Type of Goods

You must be aware of the type of goods being carried and if they are what insurers refer to as 'theft attractive' (eg computers, cameras and mobile phones). Insurers can demand that the load is never left unattended whilst in transit.

Trailers

Usually trailers owned by the haulier have cover under the motor insurance policy. If you use other people's trailers to transport goods, ensure you also have 'unspecified trailer' cover, to insure the trailer.