Goods in transit insurance
Key takeaways
- Goods In Transit (GIT) insurance covers loss, damage, or theft of goods while they're being transported in your van for business purposes.
- It's vital for couriers, removal companies, and tradespeople carrying equipment or stock.
- GIT is often sold alongside Hire & Reward (legally required for transporting other people's goods for money) and Public Liability insurance.
- Cover can be bought for a specific vehicle, for a specific journey (one-off), or as an annual policy.
Understanding goods in transit insurance helps protect your valuable cargo from theft, loss or damage while you're on the move. Plus, see how public liability insurance and hire and reward insurance fit into your van insurance needs.
What is goods in transit insurance and why do I need it?
Goods in transit insurance protects goods you carry in your van from loss, theft or damage while they’re being transported for business.
This means the cover pays out if goods are stolen from your van, damaged in an accident or lost in transit. It applies during loading, unloading and while the goods are on the road.
Many drivers wrongly assume their standard van insurance protects what they carry. It doesn’t. Standard van insurance covers the vehicle, not the cargo inside it.
GIT is especially important if you carry goods belonging to customers or high-value items. Without it, you may have to pay to replace goods yourself.
GIT is crucial for drivers, including:
- Couriers and parcel delivery services
- Removal and relocation businesses
- Tradespeople with expensive tools and equipment
- Haulage firms transporting stock or materials.
GIT is usually added on to your van insurance or bought as a standalone policy. It’s not typically included in a basic van policy by default.
“Many self‑employed drivers make the mistake of assuming their standard van insurance covers their cargo. It doesn’t. Your main van policy is for the vehicle itself. Goods-in-transit cover is a critical addition that safeguards your income and reputation by protecting the value of what you carry. Always check the small print, especially around overnight security and the maximum value of goods covered.”
What does goods in transit insurance cover?
Goods in transit insurance usually covers your goods from loss, theft and accidental damage while they’re being transported in your van.
The types of goods generally protected include:
- Your own stock and equipment
- Customer goods you’re delivering
- Tools and materials carried for work
- Cargo or inventory during transit.
And the events typically covered by GIT include:
- Theft of goods from your vehicle
- Goods damaged in a traffic accident
- Loss during loading, unloading or en route
- Goods damaged in transit due to unforeseen events.
Coverage limits
Coverage limits are the most your insurance will pay if you make a claim. Typical limits might be £5,000, £10,000 or more, depending on your policy. To make sure you’re properly protected, it’s a good idea to set your cover at least equal to the value of the items you usually have in your vehicle.
Policy limitations and exclusions
It’s important to understand what your goods in transit insurance doesn’t cover, as policies have limitations and exclusions that could affect a claim. For example, GIT normally won’t cover:
- Goods left unsecured in an unattended vehicle
- Normal wear and tear or deterioration
- Goods damaged due to poor packaging
- Certain high-risk goods unless specifically agreed upon (e.g., cash, precious metals)
- Goods left overnight without secure storage.
What’s the difference between goods in transit, public liability and hire & reward insurance?
This table shows the key differences between goods in transit, public liability and hire and reward insurance, highlighting what each covers and why your business might need it.
| Type of insurance | What it covers | Why you might need it |
|---|---|---|
| Goods in transit (GIT) | Protects goods from loss, damage or theft while in transit. | Safeguards cargo you carry for business. |
| Public liability (PL) | Covers legal costs if you injure someone or damage their property while working. | Essential if you interact with customers or members of the public. |
| Hire and reward (H&R) | Class of use on your van insurance that allows you to transport goods for pay. | Legally required for paid transport; standard Social, Domestic, and Pleasure (SD&P) cover is insufficient. |
Most businesses benefit from having all three types of cover. GIT protects the goods being carried, public liability covers you if someone is injured or their property is damaged, and hire and reward insurance ensures you’re legally allowed to drive for pay and transport goods commercially. Together, they provide comprehensive protection for business operations.
How much does goods in transit insurance cost?
Basic annual GIT cover for small couriers often starts around £200-£300, while high-value or specialised goods raise premiums proportionally.
The exact cost depends on several factors, including the value and type of goods you carry and how often you need cover. The main things that can influence your premium include:
- Value of goods: Higher cover limits typically cost more
- Type of goods: Fragile or high-value items can increase premiums
- Policy type: Annual policies usually offer better value than one-off cover
- Security: Stronger locks, alarms and secure overnight parking can reduce cost
- Excess level: A higher voluntary excess often lowers your premium.
Can I get temporary or one-off goods in transit insurance?
Yes, temporary or one-off GIT insurance is available for short-term jobs, such as a single removal, a short-term courier contract, or busy periods with extra deliveries. Temporary van insurance cover is generally more expensive per day than an annual policy and must still be the correct cover, such as Hire & Reward.
How to compare cheap goods in transit insurance quotes
To help you find the best value cover, compare goods in transit van insurance. Start with the main Uswitch van insurance comparison page, then tailor your search for GIT cover.
What information you’ll need:
- Estimated value of goods carried
- Type of goods (yours or customers’)
- Typical journeys and distances
- Whether you need public liability or other add-ons
Tips to reduce your premium
There are several practical ways to lower the cost of goods in transit insurance without compromising your cover.
- Improve van security (alarms, immobilisers): Installing alarms, deadlocks, or immobilisers makes your van less of a target and can reduce your premium
- Park securely overnight: Keeping your van in a locked garage or secure yard overnight reduces risk, which insurers often reward with lower rates
- Choose a higher voluntary excess if affordable: Opting for a higher excess can lower your premium, as you take on more of the initial cost in a claim
- Compare annual policies if regularly transporting goods: For businesses that carry goods frequently, an annual policy is usually cheaper than buying multiple short-term or one-off covers
Using these tips can help reduce costs for GIT and associated business insurance while keeping your goods protected.
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