Why your personal car insurance won't cover you when you use it for delivery work

Why drivers assume their private policy is enough for food and parcel deliveries

Most people who start delivering food, groceries or parcels make the same mistake: they think driving is still driving. They picture their private policy covering any trip from A to B, and they count on the little "business use" tick-box to be a catch-all. That assumption can cost tens of thousands of pounds, a criminal record, or both.

Private car insurance is written around the purpose of a trip. Insurers price risk differently when a vehicle is used in a commercial way - carrying goods for payment, making multiple short stops, or accepting ride-share fares. Those differences are not subtle. If you use a car or van for delivery work while declared on a Social, Domestic and Pleasure (SD&P) policy only, you are exposing yourself coventryobserver.co.uk to immediate and serious risk.

The real cost of relying on a personal policy when you deliver: financial, legal and practical fallout

A crash while you are on a delivery run triggers a different chain of events than a normal accident. Insurers investigate whether the vehicle was being used in the way your policy covers. If it was being used commercially, many insurers will decline the claim, treat the policy as void from day one and refuse any liability. That leaves you liable for:

Repairs to third-party property and vehicles Medical bills for injured parties Legal costs to defend any claim against you Replacement vehicle costs for the injured party Fines and potential disqualification for driving uninsured

Claiming on the wrong policy can also wreck your insurance record. An insurer that voids cover may cancel your policy and record a reason on databases used by other insurers. That drives premiums up for years. If the crash injures someone and you cannot pay damages, the court can grant a judgment against you. Your personal assets could be at risk.

3 reasons most couriers and platform drivers get left unprotected

Understanding the mechanics will make it easier to fix them. Here are the main reasons drivers end up without cover.

Policy wording and classification

Private policies use classification terms that matter: "Social, Domestic and Pleasure" typically covers personal travel and commuting. "Business use" may cover travel to meetings for an employer, but not goods-for-hire. "Hire and reward" (H&R) applies where you are transporting people or goods for payment. Insurers price H&R differently because the activity involves higher exposure to claims and more time on the road.

Multiple short stops and loading/unloading risk

Delivery work is not just driving. Frequent stops increase crash risk in town centres and on busy streets. Loading and unloading creates risk for third parties and goods-in-transit claims. Insurers that underwrite private-use policies avoid those concentrated risks unless you specifically buy a policy that includes them.

Platform cover gaps and misunderstandings

Many delivery platforms state they provide "cover" while you are on a job. That cover is usually limited: it may be third-party only while en route to a pickup, or only provide basic liability while logged on. It rarely replaces the need for a policy that explicitly admits H&R or combined SD&P and H&R use where your vehicle is used both personally and commercially. Drivers often read "we cover you" and stop there, without checking the limits, excesses and permitted uses.

How combined SD&P and H&R policies close the delivery insurance gap

There is a practical solution that routes around the common traps: take out a policy or endorsement that specifically combines SD&P and H&R cover. The idea is simple - the insurer formally acknowledges both your personal use and your delivery activity. That stops two problems at once: it removes the grounds for a claim rejection on the basis of use, and it sets out exactly what is covered when you accept paid work.

Combined policies are not common in every mainstream insurer's product range, but specialist brokers and insurers that service the gig economy do offer them. The policy will state the permitted forms of H&R - for example, whether it covers parcels and food, the weight or value limits for goods carried, whether it permits multiple short deliveries in urban areas, and whether goods in transit are included. A genuine combined policy will also be clear about named drivers, excesses for commercial use and whether the cover is fully comprehensive or limited to third-party liability during delivery runs.

5 steps to switch to legitimate delivery cover today

Do not wait until something happens. Follow these steps to move from risky assumption to proper cover.

Read your current policy and certificate of motor insurance

Note every phrase about permitted use, named drivers and business use. If the certificate or policy document does not explicitly list deliveries, assume it does not cover them. Make screenshots and save the documents.

Call your insurer and ask precise questions

Use these questions: "Does my policy cover carrying goods for payment or reward?" "Is a delivery platform's temporary cover sufficient to replace private cover?" "If I have an accident while carrying a delivery, will you handle the claim?" Insist on a written confirmation email or a policy endorsement number. Verbal reassurances mean less than a document.

Shop for a combined SD&P + H&R policy through a specialist broker

Look for brokers who list courier, food delivery or gig-economy vehicle cover. Ask for a sample policy schedule before you buy. Compare the limits, goods-in-transit cover, excesses and named driver terms. Watch for exclusions like "no cover for alcohol deliveries" or "no cover for hire with driver".

Consider telematics and pay-per-mile options

Telematics policies track your driving and can lower premiums for safe drivers. Some firms offer telematics specifically for delivery drivers, with separate rates for personal and commercial miles. Make sure the policy's telematics mode is compatible with delivery work and that it won’t automatically reduce cover if you change driving patterns.

Get everything in writing and keep evidence of your cover when on the job

Save the policy schedule, endorsement pages and any written confirmation that the insurer accepts delivery use. Carry a digital copy while working. If you use a platform that says it provides cover, download their wording and keep it with your insurance documents. After a claim, your first defence is the paperwork you held before the accident.

Quick win you can do in 30 minutes

Phone your insurer now and ask whether your current certificate covers goods carried for payment. If they say no or refuse to confirm, stop doing deliveries immediately until you have a valid policy. If they say yes, ask for a confirmation email that names H&R or delivery work explicitly. That small action might save you everything.

Advanced techniques: how to optimise cover and control costs

Once you have the basic combined cover, use these methods to manage premiums and limit exposure.

Split mileage and use logs Keep a simple log that records each job - date, start and finish times, miles and delivery type. Some insurers offer lower rates if you can demonstrate that only a portion of your mileage is commercial. Accurate logs reduce arguments at claim time. Bundle goods-in-transit cover For couriers carrying high-value items, a separate goods-in-transit endorsement is worth the price. It limits your out-of-pocket liability if goods are damaged or stolen. Confirm whether this is automatic in your combined policy or must be bought separately. Use named-driver endorsements with caution Many drivers allow family members to drive the vehicle. If the extra driver also does deliveries, they must be named for commercial use. Some insurers will accept family members for personal use but require an additional named-driver fee to cover H&R when they drive. Negotiate excesses and claim handling A higher voluntary excess reduces premiums. For high-frequency couriers, a bespoke arrangement where the insurer accepts a higher excess in exchange for lower periodic premiums can be beneficial. Ask about a claims-handling timeframe and whether the insurer provides courtesy vehicles after accidents during delivery runs. Consider fleet or group policies If you occasionally sub-contract other drivers or run multiple vehicles, a small fleet policy often costs less than multiple individual covers. Small delivery businesses can get better terms from commercial insurers than from personal lines shops.

What to expect after you buy proper cover - a 90-day timeline

Buying correct cover changes your legal standing immediately, but real-world effects follow a timeline. Here is a practical expectation after you switch to a combined policy.

Timeframe What happens Driver action Day 0 - Purchase Policy becomes active immediately or from the agreed start date. You receive a new certificate and schedule showing H&R inclusion. Store digital and paper copies; notify your platform if required. Day 1-7 Any queries the insurer raised during underwriting are resolved. If telematics installed, device or app activation may begin. Complete telematics calibration; keep detailed logs for the first week. Day 8-30 Initial premium adjustments may land if mileage estimates were off. You can start claiming for incidents occurring after policy start date. Insurer records your activity. File any required declarations of earnings and mileage; maintain logs. 30-90 days Insurer will have a short performance record on your account. If you made a claim, expect processing times and possible premium impact at renewal. Review your policy terms. If your pattern of work changes, renegotiate at renewal or mid-term.

Thought experiments: imagine these three outcomes

Run through these scenarios in your head. They will crystallise the risk and the benefit of taking action.

Scenario A - The crash on a private policy while delivering

You hit a pedestrian while carrying a takeaway. Your insurer finds the vehicle was used for payment and voids the policy. You are personally sued for damages and medical costs. You lose your licence for driving uninsured. Outcome: financial ruin and legal exposure.

Scenario B - Platform-only cover

You use a platform with limited cover that says "third-party only while on a job." You have an accident on the way to a pickup. The platform's insurer pays limited third-party damages but refuses goods-in-transit and personal injury cover. Outcome: partial cover, significant shortfall.

Scenario C - Combined SD&P and H&R policy in place

You have a combined policy that covers H&R and goods-in-transit. Same accident as Scenario A. The insurer handles the claim, repairs the other vehicle, pays third-party injuries within policy limits and replaces stolen goods. Outcome: protected legal and financial standing, no personal liability beyond voluntary excess.

Final checklist before you resume deliveries

Do you have written confirmation that your policy includes H&R or specific delivery cover? Is goods-in-transit included for the types and values of items you carry? Are all regular drivers named and covered for commercial use? Have you kept a copy of the platform's cover wording and limits? Do you log each delivery in a simple app or spreadsheet?

Don't treat insurance as a box-ticking exercise. The moment you start earning from your vehicle, you change the risk landscape. Acting now to buy the correct combined SD&P and H&R cover will protect your licence, your wallet and your future earning ability. If you can only do one thing today: call your insurer and get a clear, written answer about whether deliveries are permitted under your current policy. If the answer is anything but a clear yes with policy wording to prove it, stop driving for deliveries until you sort proper cover.