Why do delivery drivers need extra insurance?

Many people working as couriers or hauliers think that the Hire And Reward Insurance they have to buy is just a way for the insurers to inflate their profits; as if they would do that 😒. However it is enshrined in law, and if you don't mind reading the jargonese, the specific section of the UK Road Traffic Act 1988 that refers to hire and reward insurance is Section 145. This section requires that all vehicles used for hire or reward must have insurance that covers the use of the vehicle for this purpose.

Sorry if this bit is boring, but --

More specifically, Section 145(1) states that:

"Subject to the provisions of this Part of this Act, a person must not use a motor vehicle on a road or other public place unless there is in force in relation to the use of the vehicle by that person such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Part of this Act."

Section 145(2) then goes on to clarify that this requirement applies to vehicles used for hire or reward, stating that:

"Without prejudice to the generality of subsection (1) above, a person using a motor vehicle on a road or other public place for the carriage of passengers for hire or reward or for the carriage of goods in connection with a trade or business (other than a trade or business of carrying goods by road for or in connection with a sea or air transport undertaking) must not do so unless there is in force in relation to the use of the vehicle by that person such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Part of this Act."

So there you are. You have to have it if you carry goods and get paid for it, otherwise the full weight of the law falls on you.

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How do the police tell if you have the right insurance?

It is so easy for them. Not only is there a database of every single vehicle insurance policy in the UK available to them 24 hours a day, but there are roadside cameras (and some police cars are fitted with them too) that can automatically read a numberplate, check it against the database and inform them of which vehicles are covered by what insurance. All within a split second. And delivery vehicles are hardly difficult to spot are they?

What happens if I'm caught doing a delivery without the right insurance?

Typically; you'll be pulled over and the officer concerned will take your car, van or scooter keys (because since you are uninsured you can't drive any further!). Your vehicle will be carried or towed away to a police pound; you are then faced with jumping through hoops (including paying removal and storage fees) to get it back. If you don't do so within 14 days there is the very real possibility that it will be confiscated and either sold at auction if it is valuable enough, or crushed up for scrap metal.

If you still owe money on it that's too bad because you'll get nothing back for it; but at least you won't have to pay the impound fees! A lot of people find they simply can't afford it which is why tens of thousands of motorists lose their vehicles every year. According to a survey conducted by Churchill Car Insurance way back in 2016 nearly 23,000 vehicles were seized WITHIN THE FIRST SIX MONTHS OF THAT YEAR, and almost half of them were never returned to their owners. Do you want to know more about this subject? Try this impounded car insurance site, it answers just about every question about impounds that you are likely to ask.

Would I get fined for driving without insurance?

Absolutely. You would usually be offered a fixed penalty of about a £300 fine plus six penalty points on your licence; or if you couldn't or wouldn't accept that you would be tried at a magistrate's court which would have the power to increase the fine up to £5000. And don't try telling them you didn't know you had to have delivery insurance; they've heard it all before and it isn't a valid defence anyway.

So there it is....

If you deliver goods you need the right insurance. If you don't have it you are likely to get caught very quickly and the consequences can be pretty awful. Sorry to have to tell you that; but at least you may be able to get insurance at a price that won't make your eyes water by looking at our delivery insurance page.

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