Australians are having more packages than ever before delivered to their door creating a boom in demand for courier services. Taking advantage of this boom, the number and size of courier businesses are rapidly increasing.
However it’s not quite as simple as dropping off a parcel and counting your money - the courier industry comes with certain risks that have to be managed, and that’s where insurance for couriers comes in. Keeping insurance costs down increases the profit margin and that’s what we want to make simple in this article: what insurance does a courier need and how can you get it at a more affordable rate?
What cover does a courier driver need?
There are four main areas of insurance cover that a courier driver needs:
Theft or damage of goods
Courier vehicles are frequently targeted by thieves wanting to steal the goods. Damage to the goods can also occur at any stage in delivery. Insurance covering this will prevent you having to pay entirely out of pocket for the loss of goods. It is important to have the right kind of cover for the goods that you carry.
Theft or damage of vehicle
This is necessary because of how much time your vehicle will be on the road and how costly it can be if your vehicles get taken out of action. Commercial vehicle insurance can also cover the cost of hiring a replacement vehicle so you don’t have to stop work while your vehicle is repaired.
This insurance is essential to cover your business financially if any damage to other people’s property or injury to their bodies may accidentally occur in relation to your courier business.
Personal accident and sickness.
This is important because if you get sick or injured you may not be able to continue driving and your business might suffer. This insurance can prevent loss of income while you’re recovering.
10 ways to cut courier insurance costs
Now that it’s clear what cover is needed, it is time to see how you can get it at best price:
1. Increase your security
The courier business is at high risk of theft. Delivery vehicles travel to all areas of the city carrying valuable cargo - thieves know it and are looking for opportunities to steal. The more secure your vehicle is, the less risk it will be to you and your insurer, saving costs. To increase the security of your vehicle consider adding additional locks, trackers and cameras.
2. Use telematics
These systems enable the monitoring and recording of a vehicles’ location and how it is being driven. This has been shown to improve driver behaviour and reduce accidents because the driver is aware that their driving is being monitored. It can also aid police to recover stolen vehicles and catch thieves.
These cameras record the road ahead (or behind) the vehicle. This can save insurance costs by giving you proof if you or your driver wasn’t at fault. Like telematics it can improve driver behaviour because of the driver’s awareness of being monitored.
4. Pick the right excess level
If you have a higher excess level then you will have to pay more in the event of a claim but it will lower your ongoing premiums. It’s not easy to predict how much you will claim in the future but based on your past claims history you might make an informed guess and be able to lower your insurance costs.
5. Multiple vehicle packages
If you have more than one courier vehicle. You might save time and money with a single insurance package to cover your fleet rather than a separate policy for each vehicle.
6. Annual payments
Paying for your insurance annually can be cheaper than weekly or monthly instalments.
7. Get the precise cover you need
Avoid paying for irrelevant cover. If there is cover for activities that your business will not be engaged in, you might be paying extra.
8. Secure parking
Keep your vehicle in a secure place when it is not being used. A more secure place will decrease the chance that your vehicles will suffer from theft or damage. This can reduce your premiums.
9. Use good drivers
Young and inexperienced drivers can drive up your premiums and so can drivers with a history of bad driving. When hiring drivers consider how their age, experience and driving history will impact your insurance costs.
10. Find insurance through an insurance broker
We are able to cut your insurance costs! Insurance brokers can cut insurance costs for couriers by expertly analysing your business’ situation, identifying your areas of risk and developing an insurance package that is right for you.