Insurance isn't the most exciting part of being a delivery driver — but getting it wrong can end your career overnight. A single at-fault accident without proper coverage can leave you personally liable for hundreds of thousands of dollars in damages, vehicle repairs, and medical costs.
The problem is that standard personal car insurance almost never covers commercial delivery work. If your insurer finds out you were delivering parcels when you had a crash, they can — and regularly do — deny your claim entirely. Here's what you actually need.
🇦🇺 Australia
What's Required by Law
Every vehicle on Australian roads must have Compulsory Third Party (CTP) insurance, which is included in your vehicle registration. CTP covers injuries to other people if you're at fault in an accident. It does not cover damage to vehicles, property, or goods — and it applies regardless of whether you're delivering or driving personally.
Beyond CTP, there is no legal requirement for additional insurance. However, driving commercially without proper coverage is a significant financial risk that no serious courier should take.
What You Actually Need
If you're using your vehicle for delivery work — whether full-time courier, Amazon Flex, or occasional gig driving — you need insurance that explicitly covers commercial use. Here's what to look for:
Essential Coverage
Commercial motor vehicle insurance: Covers your vehicle for accidents, theft, fire, and weather damage while being used for delivery work. Standard comprehensive car insurance excludes commercial use — you need a policy that explicitly states courier or delivery driving is covered. Expect to pay $1,800–$4,500/year depending on your vehicle, location, and driving history.
Third-party property damage: Covers damage you cause to other people's vehicles and property. The minimum you should carry if you can't afford full comprehensive. Typically $400–$900/year.
Goods in transit (GIT) insurance: Covers the parcels and goods you're carrying if they're damaged, lost, or stolen while in your possession. Many courier contracts require this. Costs vary from $500–$1,500/year depending on the value of goods you carry.
Recommended Additional Coverage
Public liability insurance: Covers you if someone is injured or their property is damaged as a result of your work — for example, if you trip on someone's driveway and damage their garden, or a parcel falls and injures a customer. Most courier companies require $10–$20 million in public liability cover. Costs around $400–$1,200/year.
Income protection insurance: Pays a portion of your income if you're injured and can't work. Especially important for self-employed drivers who don't receive sick pay or workers' compensation. Costs $80–$200/month depending on your income and waiting period.
Tools and equipment cover: Covers your scanner, phone, trolley, and other work equipment. Often available as an add-on to your commercial motor policy for $50–$150/year.
Australian Courier Insurance Providers
Not all insurers offer commercial delivery coverage. These are some of the providers that specifically cater to courier drivers in Australia:
Chubb: Offers tailored courier insurance packages including motor, GIT, and public liability. Popular with owner-drivers.
NTI (National Transport Insurance): Specialists in transport insurance. Cover light commercial vehicles and goods in transit. Strong reputation in the freight industry.
Blue Zebra Insurance: Offers commercial motor vehicle insurance for delivery drivers and rideshare. Competitive online quotes.
Kingsbridge / OnePath: Provide public liability and business insurance packages for sole trader couriers.
What About Gig Platform Insurance?
Some platforms provide limited insurance while you're on an active delivery. Amazon Flex, for example, provides third-party liability coverage during active blocks. DoorDash and Uber Eats offer contingent insurance that kicks in only if your personal policy doesn't cover the incident.
The catch: this coverage is typically minimal, has high excesses, and only applies during the delivery itself — not while you're driving to pick up, waiting for orders, or heading home. It should never be your only coverage. Think of platform insurance as a last-resort safety net, not your actual protection.
What Happens If You're Uninsured
At-fault accident: You're personally liable for all damage to both vehicles, any property damage, and potentially medical costs beyond what CTP covers. A serious multi-vehicle accident can easily cost $50,000–$200,000+.
Claim denied: If you have personal insurance and make a claim while delivering, your insurer can void your policy entirely — not just deny the claim, but cancel the policy retroactively. You lose all coverage and may be blacklisted by other insurers.
Contract breach: Many courier companies require proof of insurance. If you're caught without it, you can lose your contract immediately.
Global Requirements
Insurance requirements for delivery drivers vary significantly by country. Here's what you need to know if you're driving in the US, UK, or Canada.
🇺🇸 United States
Legal minimum: Varies by state. Most states require liability insurance with minimums ranging from $25,000 to $50,000 per person for bodily injury. Some states (like New Hampshire and Virginia) allow alternatives to insurance. Nearly all states require uninsured motorist coverage.
Commercial requirement: If you're delivering as an independent contractor, personal auto insurance typically won't cover you. You need a commercial auto policy or a "hired and non-owned auto" endorsement. DSP drivers (Amazon delivery service partners) are usually covered under the DSP's fleet policy.
Typical cost: Commercial auto insurance for a delivery driver runs US$150–$350/month, depending on state, driving record, and vehicle type. Adding cargo/goods coverage costs an extra $30–$80/month.
Key note: Some gig platforms like DoorDash and Uber provide occupational accident insurance, but this is not a substitute for proper auto coverage. Major providers for commercial delivery include Progressive, State Farm, and GEICO.
🇬🇧 United Kingdom
Legal minimum: Third-party motor insurance is mandatory for all vehicles. Driving without insurance is a criminal offence — you can receive 6–8 penalty points, an unlimited fine, and have your vehicle seized. Repeat offenders face a driving ban.
Commercial requirement: Courier work requires "hire and reward" insurance — a specific class that covers you for carrying other people's goods for payment. Standard social/domestic and even commuting policies explicitly exclude this. Driving without hire and reward cover while delivering is legally the same as driving uninsured.
Typical cost: Hire and reward courier insurance costs £1,500–£4,000/year, depending on your vehicle, age, location, and claims history. Goods in transit cover adds £200–£600/year. Public liability (usually £5–£10 million) adds £150–£500/year.
Key note: The UK is strict about enforcement. Police use ANPR cameras linked to the Motor Insurance Database and can instantly detect uninsured vehicles. Specialist courier insurance providers include Zego (pay-per-mile), Protectorplan, and Courier Exchange.
🇨🇦 Canada
Legal minimum: Auto insurance is mandatory in all provinces and territories. Minimum liability coverage ranges from CA$200,000 (most provinces) to CA$500,000 (recommended). British Columbia, Saskatchewan, and Manitoba have government-run insurance programs; other provinces use private insurers.
Commercial requirement: Delivery driving requires a commercial use endorsement on your auto policy. In provinces with government insurance (BC, SK, MB), you must register your vehicle for business use — which changes your rate class. Using a personal policy for commercial delivery is grounds for claim denial and policy cancellation.
Typical cost: Commercial auto insurance for couriers runs CA$200–$450/month depending on province, vehicle, and driving history. Ontario and BC tend to be the most expensive. Cargo insurance adds CA$30–$100/month.
Key note: Canada's winter driving conditions mean higher premiums and stricter requirements. Some insurers won't cover delivery drivers who operate in winter without winter tyres. Providers like Intact, Aviva, and The Co-operators offer commercial delivery packages.
Quick Comparison
| Country | Legal Min | Commercial Required? | Annual Cost (approx) |
|---|---|---|---|
| 🇦🇺 Australia | CTP (in rego) | Not legally, but essential | A$2,500 – $6,000 |
| 🇺🇸 United States | Varies by state | Yes (for contractors) | US$1,800 – $4,200 |
| 🇬🇧 United Kingdom | Third-party (mandatory) | Yes — hire & reward | £1,800 – $4,500 |
| 🇨🇦 Canada | CA$200K liability | Yes — commercial endorsement | CA$2,400 – $5,400 |
*Costs are approximate and vary based on driver age, vehicle, location, claims history, and coverage levels. Always get personalised quotes from licensed insurers.
Tips for Reducing Your Premiums
Maintain a clean driving record. No at-fault claims and no traffic offences is the single biggest factor in keeping premiums low. Some insurers offer no-claims discounts of up to 65%.
Increase your excess. A higher voluntary excess (the amount you pay before the insurer pays) reduces your premium. Just make sure you can actually afford the excess if you need to claim.
Install a dashcam. Many insurers offer 5–15% discounts for vehicles with front and rear dashcams. They also protect you from fraudulent claims, which is increasingly common in delivery driving.
Bundle your policies. Getting motor, GIT, and public liability from the same provider often comes with a package discount of 10–20%.
Drive a fuel-efficient, low-risk vehicle. Insurers assess risk based on vehicle type. A small van (like a Caddy or Berlingo) will cost significantly less to insure than a large panel van.
Shop around annually. Loyalty to one insurer rarely pays off. Get at least three quotes every renewal period. Comparison sites like iSelect (AU), Compare the Market (UK), and Kanetix (CA) can speed this up.
Final Thought
Insurance feels like an expense when everything's going well — and like a lifesaver when it isn't. The cost of proper courier insurance is real, but it's a fraction of what a single uninsured incident can cost you. Treat it as a non-negotiable business expense, budget for it accordingly, and make sure your coverage actually matches what you do every day.
Disclaimer: This article is for general information only and does not constitute insurance, legal, or financial advice. Insurance requirements and regulations change frequently. Always consult a licensed insurance professional or broker for advice specific to your situation, vehicle, and location.