Courier Vehicle Insurance Australia: What It Covers & Costs

Courier vehicle insurance is specialist cover for any car, van, ute, motorbike, scooter or e‑bike used to deliver goods for hire and reward in Australia. It goes beyond private car insurance and CTP, recognising the extra risks of frequent stops, busy carparks, late‑night runs and carrying items that don’t belong to you. At its core is commercial motor cover for your own vehicle and third‑party property damage, with optional protections such as goods in transit (for spoiled, lost or broken items), public and products liability (if someone is injured or property is damaged while you’re working), and personal accident or downtime cover to keep income flowing. Without a policy that explicitly allows courier use, many private policies can decline claims, and platform cover is limited.

This guide explains who needs courier insurance, how it differs from CTP, what each policy covers, and the options for comprehensive vs third party. You’ll see typical limits and exclusions for goods in transit, liability and personal accident, common claim pitfalls, state compliance, what drives your premium and how to save. We’ll also cover vehicle‑specific tips, choosing the right use class, basic tax considerations, how to compare providers and get a quote, step‑by‑step claims, territorial limits and practical risk‑management that insurers reward. Let’s get you clear on the cover you actually need, at a fair price.

Who needs courier vehicle insurance in Australia

If you’re being paid to move goods that aren’t yours, you need courier vehicle insurance in Australia — whether you drive a car, van, ute, ride a motorbike or scooter, or deliver on an e‑bike. Standard private policies commonly exclude “hire & reward” trips, and platform cover is limited, so even a single paid delivery can leave you uninsured. This applies to sole traders with an ABN, subcontractors to transport firms, and small owner‑driver fleets.

• App-based couriers: Uber Eats, DoorDash, Menulog, Amazon Flex and similar.
• Local delivery runs: florists, bottle‑shops, pharmacies, mail contractors.
• Two‑wheel couriers: motorbike/scooter riders and e‑bike cyclists (typically public liability plus the right motor/theft cover).
• Part‑time drivers: weekend or occasional runs still count as commercial use.

CTP versus courier vehicle insurance: what’s the difference

Compulsory Third Party (CTP) is the injury cover attached to vehicle registration in Australia (called a Green Slip in NSW). It helps with people injured when your vehicle is involved in an accident. It does not repair your car, pay for damage to other people’s property, replace spoiled parcels, or defend you if a customer is hurt during a delivery. Courier vehicle insurance is a separate, specialist policy that recognises hire & reward use and fills those gaps with commercial motor cover, third‑party property liability, goods in transit, and public/products liability. Platform “contingent” cover is limited and only applies while an order is live, so it’s not a substitute.

• CTP: mandatory injury cover; no property or vehicle damage.
• Courier vehicle insurance: commercial motor + third‑party property.
• Goods in transit and public liability: added to protect cargo and customers.
• Admin: CTP sits with rego; courier cover is arranged separately and must state courier use.

What it covers: core policies explained

Courier vehicle insurance in Australia is a bundle of policies designed for hire & reward driving. It starts with commercial motor for your wheels, then layers on protections for the cargo you carry and the people you interact with. The right mix depends on your vehicle, the value of goods, and client or platform requirements, but the building blocks rarely change.

• Commercial motor: Covers your vehicle for accidental damage, theft, fire and weather, plus third‑party property damage. Must explicitly allow courier use.
• Goods in transit: Protects customers’ items against loss, damage or spoilage while in your custody. Limits and packaging conditions apply.
• Public & products liability: Pays for third‑party injury or property damage that happens in the course of your delivery work (e.g., at pickup/drop‑off).
• Personal accident / income protection: Helps replace income after a covered injury; optional but important for sole traders.
• Downtime / replacement vehicle: Keeps you earning if your car or van is off the road following an insured event.

Most couriers combine these into one tailored package; e‑bikes and scooters often focus on liability, theft and personal accident over motor cover.

Commercial motor cover options: comprehensive vs third party

Commercial motor is the backbone of courier vehicle insurance in Australia. You’ll generally pick between comprehensive and third‑party property, with a middle “third‑party, fire & theft” option. Whatever you choose must explicitly allow hire & reward; otherwise claims can be declined. Comprehensive pays for your own vehicle (accident, theft, weather) plus third‑party property damage, while third‑party covers only the damage you cause to others. Lenders usually require comprehensive on financed vehicles, and excesses can be higher than private policies.

• Comprehensive: Own‑damage, theft, fire, weather and up to $20m third‑party property. Best for newer or financed cars and vans.
• Third‑party, fire & theft (TPFT): Covers others’ property, and your vehicle if it’s stolen or burns. No cover for crash repairs to your car.
• Third‑party property only (TPPD): Cheapest; pays for damage you cause to other property, not your vehicle.

Motor cover stops at the bumper—cargo needs separate goods in transit.

Goods in transit cover: limits, exclusions and claims

Goods in transit is the add‑on that protects customers’ items while you carry them, and it’s a common pillar of courier vehicle insurance in Australia. It’s not usually standard on motor policies, so you select a limit that matches your loads and the platforms or clients you work with.

• Typical limits: Food delivery often sits at $1k–$5k per load; parcel couriers can buy higher bands like $20k or $50k for electronics.
• Per‑item vs per‑load: Policies often cap both; make sure your single‑item limit isn’t lower than the priciest parcel you carry.
• Packaging conditions: Many insurers won’t cover damage if goods weren’t “properly packaged”.
• Overnight/locked vehicle: Some policies only respond if items were locked and the vehicle was secured; check wording.
• Spoilage and spills: Usually covered for food under specific sub‑limits.

For claims, expect to provide in‑app proof or a consignment note, photos of damage and packaging, and quick notice to your insurer. Keep delivery logs and receipts—clear custody evidence speeds assessments and avoids disputes over exclusions and sub‑limits.

Public and products liability for couriers

Public and products liability sits alongside your motor and goods cover to protect you when things go wrong off the road. It responds to third‑party injury or property damage you cause while working (think driveways, reception areas, lifts) and extends to “products” liability if an item you’ve handled or delivered later causes loss. Typical limits are $5m, $10m or $20m, and many larger senders insist on at least $10m. It’s different from your motor policy’s third‑party property cover, which won’t help if you drop a parcel on someone’s foot or crack a customer’s tiles.

• What it can cover: slips, trips and falls at pickup/drop‑off; scratched floors, broken gates; a delivered item causing damage/injury after handover.
• Common requirements: a current Certificate of Currency; listing subcontractors where used.
• Frequent exclusions: deliberate acts, unsafe loading/unloading practices, contractual liability you’ve assumed, and damage to goods in your care (that’s goods in transit).

Keep clear incident notes and photos—fast, factual reports make liability claims far smoother.

Personal accident and downtime cover

When you’re a sole trader, a sprained wrist or a written‑off van can stop your income overnight. Personal accident (or broader income protection) pays a weekly benefit if you’re injured and can’t work, with lump sums for permanent disablement or death. Downtime cover or a replacement vehicle keeps earnings flowing when your car is off the road after an insured event. Platform “assistance” won’t replace your income—these two add‑ons are the practical safety nets.

• Waiting and benefit periods: Accident policies can have 14‑day waits and 6‑month to 5‑year benefits; downtime is often capped in days.
• How payments are set: A percentage of average income (e.g., up to 85% with caps such as $1,500/week); keep app earnings reports.
• Injury vs sickness: Accident‑only excludes illness; income protection can include non‑work sickness.
• Downtime triggers: Hire car or cash allowance after an insured loss—immediately if not at fault, otherwise a 48–72‑hour wait is common.
• Key exclusions: Pre‑existing conditions, unsafe riding/driving, undeclared secondary jobs, or using a vehicle not listed on your policy.

Optional extras that add real value

The right add-ons can turn courier vehicle insurance in Australia from basic protection into a productivity boost. Choose extras that cut downtime, smooth claims and trim premiums—especially if you’re on the road daily or rely on one vehicle to earn.

• Windscreen and window glass: Excess‑free repairs/replacement to keep you moving.
• Hire car/replacement vehicle: Stay earning while your car or van is repaired (often immediate when not at fault).
• Roadside assistance & 24/7 towing: Critical for late‑night breakdowns.
• Preferred repairer network: Lifetime workmanship warranty and potential excess discounts.
• Telematics/safe‑driver discounts: Lower premiums for proven smooth driving.
• Gear and delivery equipment theft: Covers scanners, phone mounts and thermal bags kept in the vehicle.

What isn’t covered and common claim pitfalls

Even solid courier vehicle insurance has boundaries. Most gaps come from using the wrong policy (private instead of hire & reward), exceeding limits, or missing basics at claim time. Read your PDS and match cover to how you actually operate—vehicle, goods value, hours and platforms—then keep clean evidence of each run.

• Private-use policies: Claims can be declined if you were delivering without hire & reward specifically noted.
• Improperly packaged goods: Goods in transit often excludes items not “properly packaged” or secured.
• Unlocked/left unattended: Theft of cargo may be declined if the vehicle wasn’t locked or secured as required.
• Overnight storage: Some policies restrict cover for goods left in vehicles overnight without specified security.
• House moves/hazardous goods: Many courier policies don’t cover removals or dangerous goods.
• Exceeding limits: Per‑item or per‑load caps apply; high‑value electronics can punch through your cover.
• Unlisted drivers/age excesses: Using unlisted or under‑age drivers can trigger higher excesses or no cover.
• Late notification/poor evidence: Delayed lodgement, no police event number (when required), or missing app logs/photos slows or sinks claims.
• Unsafe loading/unloading: Liability claims may be rejected for negligent handling or contractual liabilities you’ve assumed.

Laws and compliance across states and territories

Courier work is regulated state‑by‑state, but a few constants apply everywhere: CTP with your rego is mandatory for injury cover, and if you’re carrying goods for hire & reward you should hold a motor policy that explicitly allows courier use. Private policies that exclude delivery work can leave you effectively uninsured. Declare commercial use when registering/renewing, and keep your Certificate of Currency handy—many platforms and senders will ask for it.

• NSW: Separate CTP “Green Slip”. Regulators and major clients can request proof that your vehicle is insured for hire & reward. Keep evidence of public liability where contracts require it.
• VIC: Authorities may ask for appropriate insurance when you transport goods for reward. Work with a policy that names courier use and retain current certificates.
• QLD, SA, WA, TAS, NT, ACT: Registration forms capture commercial use; CTP and risk loadings reflect that. Insurers expect your comprehensive/TP policy to match declared use.

Practical compliance tips: carry your insurance certificate, list all delivery platforms on your policy, and meet any contractually required limits (often $10m public liability and specified goods‑in‑transit sums).

What affects your premium and how to save

Insurers price courier vehicle insurance in Australia around your real‑world risk. Expect them to weigh your age and licence tenure, postcode theft/accident data, vehicle value and modifications, the type and value of goods you carry, declared kilometres and late‑night driving, plus any recent claims or demerit points. The cover limits you choose (especially goods in transit and public liability) also move the dial.

• What pushes premiums up: under‑25 drivers; metro high‑risk postcodes; expensive vans or fit‑outs (e.g., refrigeration, sign‑wrapped vehicles); long hours or midnight shifts; recent at‑fault claims/demerits; high‑value electronics requiring bigger transit limits.

• Smart ways to save: pay annually (avoid instalment loadings); increase your excess to trim the base rate; use telematics/safe‑driver apps for discounts; bundle policies for multi‑policy rebates; shop every renewal and ask for a price‑beat; improve security (locked garaging, GPS tracker, steering lock) and send proof; declare actual delivery hours/kms if part‑time; use preferred repairers where excess discounts apply.

Right‑size your limits to the value you actually carry—protection without overpaying.

Vehicle-specific guidance: car, van, motorbike and e-bike

Different wheels face different risks, so tailor your courier vehicle insurance in Australia to how you actually deliver. Match motor cover to vehicle value, then add goods in transit, liability and extras that reduce downtime or theft exposure.

• Cars (hatch/sedan/SUV): Choose comprehensive if the car’s newer or financed; add goods in transit to at least cover your highest single parcel or food order. Hire car/replacement vehicle is valuable if you rely on one car. Declare all delivery apps and any wraps or roof racks.

• Vans/utes: Comprehensive plus higher transit limits (e.g., $20k+) if you move electronics or bulk parcels. Mods like shelving, ladder racks or refrigeration can change pricing—declare them. Consider public liability at $10m where larger clients require it, and add windscreen cover for highway routes.

• Motorbikes/scooters: If the bike’s low value, third‑party property can suffice; pair it with public liability and personal accident. Add gear/theft cover for helmets, gloves and delivery bags. Keep goods in transit for spills/spoilage if you carry food.

• E‑bikes/pedal bikes: Focus on public liability (often $10m) plus theft cover for the bike and battery. Personal accident is key for income protection. Goods in transit sub‑limits for meals help with spillages; secure parking and quality locks can unlock premium savings.

Courier, haulage and rideshare: choosing the right use class

Getting the use class right is non‑negotiable. Insurers treat “hire & reward” for goods (courier) very differently from passenger transport (rideshare) and long‑distance freight (haulage). Pick the wrong one and claims can be declined. As a rule, courier vehicle insurance in Australia should explicitly state courier/hire & reward use; “business use” or “carriage of own goods” doesn’t cover other people’s property, and platform cover is only contingent while an order is live. If you deliver and carry passengers, arrange a multi‑use commercial policy or separate policies, and declare every platform and the type/value of goods.

• Courier/hire & reward: Many small deliveries in a local area (food, parcels, pharmacy runs). Add goods in transit.
• Haulage: Fewer, larger loads over longer distances; higher transit limits typically required.
• Rideshare/passenger: Transporting people for Uber/Ola etc.; different liability focus.
• Mixed work: Ask for a policy that lists both courier and rideshare uses; match goods‑in‑transit limits to your highest load.

Disclose anything non‑standard (house moves, hazardous goods, refrigeration) up front so your cover matches the risk.

Business setup and tax basics for couriers

A simple, tidy business setup makes your insurance easier to place and your claims and tax far cleaner. Most new couriers start as sole traders with an ABN, then add the right policies (commercial motor, goods in transit, public liability) in the same legal name they invoice under. Keep business banking separate and store your certificates of currency and policy schedules with your client documents.

• Choose a structure: Sole trader is common; companies and trusts suit bigger fleets—get advice before you scale.
• Register properly: ABN, business name (if trading under one), and declare commercial vehicle use where required.
• Track income and costs: Keep app earnings reports, invoices, bank feeds and receipts for fuel, servicing, tyres, rego, tolls and platform fees.
• Substantiate vehicle use: Maintain a logbook/odometer records so motor deductions are supportable.
• Claim insurance correctly: Premiums for courier vehicle insurance, public liability and goods in transit are usually business expenses—file invoices and payment proofs.
• GST/BAS ready: If you’re registered, set aside tax and lodge on time; know how platforms treat GST in your payouts.
• Super and payroll: Make voluntary super for yourself; if you hire drivers, get advice on payroll tax and workers’ compensation.
• Keep cash aside: Ring‑fence money for tax, renewals and excesses so a claim or bill doesn’t stop your runs.

Speak with a registered tax adviser to align your record‑keeping and deductions with ATO rules for your situation.

Comparing providers and what you’ll need to get a quote

When you compare courier vehicle insurance in Australia, start with provider type: specialist gig-economy insurers (like National Cover), big household brands that add commercial use, and courier-focused underwriters that bundle higher goods‑in‑transit limits. Platform “contingent” cover isn’t a substitute. Prioritise clear hire & reward wording, the right transit and liability limits, real downtime support (hire car/replacement), and practical service such as 24/7 towing, lifetime repair warranties, price‑beat guarantees, and simple claims via email with a single handler.

• What to check: explicit courier/hire & reward use, comprehensive vs TPPD and excesses, goods‑in‑transit and public liability limits (many clients want $10m), downtime/hire car triggers, preferred repairer network with lifetime warranty and 24/7 towing, and any telematics/multi‑policy or price‑beat discounts.
• What you’ll need for a quote: rego/VIN/odometer, vehicle mods/wraps, ABN and delivery platforms, delivery hours and annual kms, garaging postcode and security (alarm/GPS), goods type and max load value, listed drivers, licence/claims history.

How claims work for couriers step by step

Handle every incident as if an assessor is already watching: make the scene safe, collect clean evidence, and notify your insurer quickly. Because courier vehicle insurance hinges on hire & reward use, your delivery app logs, consignment notes and photos are crucial to prove custody and keep things moving.

1. Make safe and check for injuries; call 000 if needed.
2. Call police if anyone’s hurt, details aren’t exchanged, or damage meets local thresholds (about $3,000 in NSW/VIC; around $2,500 elsewhere) and get an event number.
3. Capture evidence: wide and close‑up photos, dash‑cam, street signs, order ID, in‑app route and timestamps, witness contacts, packaging shots.
4. Protect cargo: photograph damage, keep packaging/receipts, notify the sender/platform, and stop delivering.
5. Notify your insurer within 24–48 hours and lodge: licence, rego, app logs, police/event number, tow/repair details, and earnings proof for downtime.
6. Assessment and repairs: you’ll get an acknowledgement and a dedicated handler; choose a preferred repairer if available.
7. Excess and income: pay the applicable excess, use hire car/downtime benefits, and expect excess refunded if the insurer recovers from an at‑fault third party.

Tip: for minor chips or theft under your excess, consider paying privately to preserve your premiums.

What your delivery platform’s cover actually includes

Most delivery apps provide only “contingent” protection. It’s there to satisfy legal basics while an order is live, but it’s not a substitute for proper courier vehicle insurance Australia drivers need for day‑to‑day risks. Think of it as a narrow back‑stop, not a full policy.

• What it usually includes:

  • Limited third‑party injury/property cover while you’re on an active trip (pickup to drop‑off).
  • Help with compulsory injury obligations that sit alongside your state CTP.

• What it doesn’t include:

  • Damage to your own vehicle, theft, fire or weather losses.
  • Goods in transit for lost/spoiled items outside narrow app terms.
  • Downtime income, hire car, or off‑app/private driving.

• When it applies:

  • Only during a “live” order window; waiting, repositioning and personal trips are out.

• What you still need:

  • A policy that explicitly lists hire & reward use, plus goods in transit and public liability to plug the gaps.

Intercity and cross-border deliveries: territorial limits to know

If your runs jump between cities or states, make sure your policy’s territorial scope actually fits the route. Commercial motor in courier vehicle insurance Australia is usually valid nationwide, but policies still spell out where cover applies, and goods in transit often has a defined geography. International legs are generally excluded unless specifically endorsed. Sea or air segments (for example, a ferry crossing) may need a separate marine transit extension. If you’re routinely overnighting on the road, expect security conditions to apply to both the vehicle and cargo.

• Australia-only vs overseas: Confirm the schedule says “Australia-wide”; trips outside Australia typically need prior approval or separate cover.
• Sea/air legs: Goods in transit may not cover these—ask for marine transit if any leg isn’t by your vehicle.
• Adequate limits on long routes: Check per-item and per-load sums for higher-value interstate consignments.
• Overnight security: Many policies require locked vehicles, alarms and documented custody after hours.
• Disclosure: Longer intercity kilometres and regular out-of-area garaging should be declared to avoid claim issues.

Risk management and security tips insurers reward

Insurers price courier vehicle insurance around preventable risk. The more you reduce theft and collision exposure—and prove it—the sharper your quotes and the smoother your claims. Build simple, repeatable habits that protect your vehicle, cargo and customers, and document them so underwriters and assessors can see the difference.

• Vehicle security: Locked garaging, steering‑wheel lock, immobiliser and GPS tracker. Fit van deadlocks/bulkhead, keep the cabin clear of parcels, and park nose‑to‑wall to block doors. Avoid leaving goods in vehicles overnight unless your policy allows it.
• Evidence stack: Hard‑wired dash‑cam, timestamped photos, consignment notes and in‑app logs. Fast, clean evidence speeds recoveries and excess refunds.
• Telematics and route discipline: Opt in to safe‑driver/OBD programs; plan routes to avoid hotspot postcodes and peak crash times where possible.
• Cargo care: Proper packaging, load restraint (nets/straps/cages), and item counts at handover. Don’t exceed per‑item or per‑load limits; disclose hazardous or high‑value goods.
• Maintenance: Pre‑start checks (tyres, brakes, lights), prompt windscreen repairs, scheduled servicing—small defects cause big claims.
• Admin hygiene: Declare every platform, list all drivers and mods, keep certificates current, and lodge incidents within 24–48 hours.
• Personal safety on runs: Choose well‑lit drop zones, keep phones and keys on you, and avoid displaying delivery apps when parked.

Key takeaways

Courier work is high frequency, higher risk, and unforgiving if you’re underinsured. The essentials don’t change: use a policy that explicitly lists hire & reward, set realistic limits for cargo and liability, keep clean evidence of every run, and build habits that cut theft and downtime. Do that, and you’ll protect your wheels, your income and your reputation.

• Hire & reward is a must: Private policies exclude deliveries; platform cover is narrow.
• CTP ≠ full cover: Add commercial motor + third‑party property, then goods in transit and public liability.
• Choose motor wisely: Comprehensive for newer/financed vehicles; TPPD if the maths stacks up.
• Right limits win: Match per‑item and per‑load transit sums; many clients expect $10m PLI.
• Claims basics: Evidence first, notify within 24–48 hours, use preferred repairers/hire car.
• Disclose everything: Platforms, drivers, mods, kilometres; carry current certificates and meet state requirements.
• Save smart: Pay annually, raise excess, use telematics, improve security, right‑size limits, compare at renewal.

Ready to lock in the right cover at the right price? Get a tailored quote in minutes with National Cover.