Many people turn to delivering parcels using their own car as a means to generate some extra cash often overlooking the change of use associated with the car.
When a vehicle is used for financial gain, the use of the vehicle is then classed as ‘commercial’ of which most car insurance providers do not cover for.
If car insurance companies find out that you had an accident whilst using your car for commercial gain, they can refuse to pay out or even cancel your insurance.
Those who are using their vehicle for commercial reasons generally have a greater chance of having an accident due to increased road use.
Can drivers be fined?
In short, the answer is, Yes. If you are caught using your vehicle for use commercial use of any kind and do not have the relevant insurance in place, then you can be fined £300 by the police.
It is possible that you could also have 6 penalty points applied to your license.
What insurance should you get?
If you intend to use your vehicle for commercial reasons, then you need to obtain a proper courier insurance policy. If the vehicle you use is a van, then a van courier policy would a more suitable option.
By utilising one of these policies, you will be protected against a greater amount of risks such as damage to the goods you carry, the vehicle and loss of earnings.
Courier vehicles are also a higher target for thieves due to the value of goods they carry. If you do not have some for of courier or hire and reward policy in place, then any goods stolen will have to be replaced by you directly.
Operating as a courier delivering parcels on the side can be very rewarding. It is however essential that you have correct and proper cover in place. Failure to do so could quite easily see you ending up worst off than compared to what you started with.