Carriage of Own Goods Van Insurance

Carriage of own goods van insurance is designed for people who use a van for work and carry tools, equipment, materials or other items belonging to their own business. It is a common class of use for tradespeople, sole traders and businesses that rely on a van as part of their working day.

Don't know the registration? No problem, just hit the button and enter your details on the next page.

What does carriage of own goods mean?

Carriage of own goods is a class of use for business van insurance.

It generally applies when you drive your van for work and carry items connected with your own trade or business rather than being paid to transport goods belonging to somebody else.

For example, it could apply to:

a builder carrying tools and building materials;
a plumber transporting tools, pipes and fittings;
an electrician travelling to jobs with work equipment;
a gardener carrying machinery and supplies;
a carpenter transporting tools and materials;
a cleaner carrying equipment between customers; or
a business transporting its own stock, products or equipment.

The important distinction is that the items being transported are connected with your own work or business.

The exact definition can vary between insurers, so you should always describe how you use your van accurately when requesting a quote.

Who needs carriage of own goods cover?

This type of business use is particularly common among tradespeople and other workers who travel between jobs with the equipment needed to carry out their work.

You might need it if you use your van to:

travel between customers or job sites;
transport your own tools;
collect materials from suppliers;
carry equipment needed for your work;
move stock or products belonging to your business;
transport raw materials; or
remove waste or materials from a job.

It is not limited to traditional building trades. A wide range of sole traders, contractors and small businesses can use vans in this way, from mobile mechanics and gardeners to cleaners, florists and maintenance businesses.

If you work for yourself, our guide to self-employed van insurance explains some of the wider insurance considerations for sole traders and contractors.

Is carriage of own goods the same as business van insurance?

Carriage of own goods is a type or class of business use rather than a completely separate form of motor insurance.

When arranging cover for a work van, insurers need to know what the vehicle is used for. This helps them assess the risk and determine whether the policy is suitable for your activities.

A van used privately at weekends presents a different risk from one driven between building sites every day, while a courier making frequent paid deliveries presents a different risk again.

This is why accurately selecting the way your van is used is important.

For more general information about insuring a van that you use for work, see our commercial van insurance guide.

What is the difference between own goods and hire and reward?

The main difference is whose goods you are carrying and why you are transporting them.

Carriage of own goods generally applies when the tools, equipment, materials or other items being transported belong to you or your business and are being carried as part of your own work.

Hire and reward applies when you are paid to transport goods belonging to another person or business.

For example, a plumber carrying their own tools between jobs would normally fall into the first category. A delivery driver who is paid to collect parcels belonging to other people and deliver them to customers is carrying goods for hire and reward.

If you are making paid deliveries for other people, ordinary business use may not be enough. Take a look at our courier van insurance page for more information.

Always check the insurer’s definition if you are unsure, particularly if your work involves deliveries as well as carrying your own equipment.

Does it insure the tools and goods inside my van?

Not automatically.

This is an important distinction because the term can easily be misunderstood.

The class of use tells the insurer how you use the vehicle. It does not necessarily provide insurance for the actual tools, equipment, materials or stock being carried inside it.

For example, your van could be correctly insured for business use while the tools stored in the back are not covered against theft.

If you carry valuable equipment, check whether your chosen policy includes any protection for van contents or whether separate tool insurance is required.

Things worth checking include:

whether tools are covered at all;
the maximum amount that can be claimed;
any limit applying to individual items;
whether theft from an unattended van is covered;
whether overnight theft is included;
whether there are restrictions on where the van can be parked; and
whether the insurer requires particular locks or other security measures.

Do not assume that because you have declared the items you carry, their value is automatically insured.

What levels of cover are available?

Your class of use and your level of motor insurance cover are separate things.

Depending on the insurer, you may be able to choose between the usual levels of van insurance.

Third party only

Third party insurance covers your liability for injury to other people and damage to their vehicles or property. It does not cover accidental damage to your own van.

Third party, fire and theft

This includes third-party protection as well as cover if your van is stolen or damaged by fire.

Comprehensive

Comprehensive insurance can also cover accidental damage to your own vehicle, subject to the policy terms, exclusions and excesses.

Choosing comprehensive insurance does not mean every possible business activity or item carried in the vehicle is automatically covered. You still need the correct class of use and should check what is and is not included in the individual policy.

What affects the cost?

The price will depend on your individual circumstances rather than there being a single premium for this type of business use.

Insurers may take into account factors such as:

your occupation;
the nature of your business;
what you use the van for;
your age and driving experience;
your claims history;
any motoring convictions;
where you live;
the van’s make and model;
the vehicle’s age and value;
your estimated annual mileage;
where the van is kept overnight;
security devices fitted to the vehicle;
modifications;
additional drivers;
the level of cover selected; and
your compulsory and voluntary excesses.

What you carry and the way the vehicle is used during a normal working day can also be relevant. This means two tradespeople driving similar vans will not necessarily receive the same price.

How can I reduce the cost of business van cover?

There are several things you can consider when comparing quotes.

Shop around. Different insurers assess occupations and business use in different ways, so it can pay to compare.

Estimate your mileage accurately. Give a realistic figure based on the amount of driving you expect to do.

Review who needs to drive the van. Only add additional drivers who genuinely need to use the vehicle.

Consider vehicle security. Suitable locks, alarms, immobilisers and secure overnight parking may help reduce the risk of theft.

Choose your voluntary excess carefully. Increasing your voluntary excess can sometimes reduce the premium, but make sure you could afford the combined excess if you made a claim.

Compare the overall cost of monthly payments. Paying by instalments may involve interest or finance charges, so look at the total payable as well as the monthly amount.

Most importantly, do not select a different class of use simply because it gives you a cheaper quote. The information you provide should accurately reflect how the van is used.

What information will I need to get a quote?

When comparing van insurance, you will normally need information about yourself, your vehicle and your work.

This may include:

the van registration;
make and model;
vehicle value;
your occupation;
the type of business you operate;
how the van is used;
what you typically carry;
your estimated annual mileage;
where the van is kept overnight;
any modifications;
your driving licence details;
previous claims;
motoring convictions;
additional drivers; and
the level of cover you require.

Providing accurate details can help insurers determine which policies are suitable for the way you use your vehicle.

Carriage of own goods FAQs

Is carriage of own goods the same as carrying tools?

Carrying your own tools for work is one of the most common examples of this class of use, but it can cover more than tools. It may also apply when transporting equipment, materials, stock or other items belonging to your own business.

Are my tools insured if I select carriage of own goods?

Not necessarily. The class of use relates to the way you use your van. It does not automatically mean the contents of the vehicle are insured. Check whether tool or equipment cover is included, available as an optional extra or needs to be purchased separately.

Can builders use this type of van insurance?

Yes. It is commonly relevant to builders who use a van to travel between jobs and transport their own tools, equipment and building materials. The same principle can apply to plumbers, electricians, carpenters, decorators, gardeners and many other trades.

Can I carry materials from a builders’ merchant?

If you are collecting materials for use within your own business or trade, this can fall within carriage of own goods use. You should still describe your activities accurately to your insurer and check the policy wording.

Can I use the van for private journeys too?

Business van policies can often include social, domestic and pleasure use as well, but this depends on the policy. Check the class of use shown in your insurance documents to make sure the journeys you intend to make are included.

What if I deliver parcels for another company?

If you are paid to collect and deliver parcels or other goods belonging to somebody else, you may need hire and reward or courier insurance instead. Ordinary business use should not be assumed to cover paid delivery work.

Is goods in transit insurance the same thing?

No. The class of use relates to your motor insurance and the way your van is being driven. Goods in transit insurance is designed to provide protection for goods while they are being transported, subject to the terms and exclusions of the policy. They address different risks, so having one does not automatically mean you have the other.

Compare quotes for carrying your own goods

If you use a van to travel between jobs and transport tools, equipment, materials or stock belonging to your business, choosing the correct class of use is an important part of arranging your cover. Carriage of own goods van insurance can suit tradespeople, sole traders and businesses that use their vehicle in this way, so enter your details and compare quotes from a panel of UK van insurers.

Compare van insurance quotes for your business

Tell us about your van and how you use it for work. Compare quotes in under 5 minutes – no credit card needed.

Get Quotes Now