Pay-as-you-go food delivery insurance

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What is pay as you delivery hire and reward insurance?

This type of coverage for your vehicle is classified as Hire and Reward insurance. This makes it legal for you to deliver third party parcels, food and other items and get paid for it. This coverage is only active when you are working and making a delivery.

If you are using your private vehicle, car, van or bike to provide a delivery service you need a special type of cover often referred to as pay as you go hire and reward insurance. The pay as you go or use model is relatively new to the UK insurance marketplace. First introduced in 2013 under the Cuvva brand.In basic terms it allows customers buy pay-as-you-go insurance via an app. This disruptive technology is popular in all sectors of the UK insurance market. Pay as you go delivery insurance is an offshoot and is perfect for fast food delivery drivers that operate for the local takeaway or via Deliveroo or ZEGO.


The pay as you go delivery insurance is in addition to your social, domestic and pleasure vehicle insurance you took out to register your vehicle which can be third party, third party fire and theft or comprehensive. This extra type of coverage can be added to anyone of those.

pay-as-you-go delivery insurance

Pay as you go delivery insurance is the ideal coverage for part-time delivery persons and couriers who work less than 20 hours a week. 

How does pay as you go delivery insurance work?

The process is simple. You have an account with an insurance agent that offers this type of coverage. The deposit you place with them for this coverage can be as low as £25. Upon picking up a package to be delivered you activate your coverage. When you are done making the delivery you deactivate the coverage. If provide delivery by bike or scooter you can also apply for pay as you go bike insurance.

The activation is accomplished with a black box mounted to your vehicle that tracks your activity.

What does the black box track when activated?

The black box is a telemetric device that records how a person drivers. For younger drivers, the installation of one will help lower their Social, Domestic and Pleasure insurance premiums since it can prove they are driving safely.

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    The time you are making a delivery.
  •                    
    How fast you accelerate.
  •                    
    How suddenly you brake.
  • Your speed when going around corners.
  • The mileage you achieve.
  • A GPS is part of the black box so your location is always known.

The number of hours you are working can be tracked through your insurance company’s website. Some insurance companies have an app that provides you with the details you need like hours making deliveries. If you need fast food delivery insurance it may be prudent to look at pay as you options.

How much does pay as you go delivery insurance cost?

Because this is a short term coverage, most insurance companies charge by the hour or the miles you travel. The type and size of vehicle you have is what determines the cost per hour or mile. The age of the named driver also factors into the cost per hour or mile.

The list below is the cost of common delivery vehicles rated by the hour covering the average named driver. For drivers under the age of 25, the cost will be more.

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    Scooters cost £0.55 per hour.
  •                    
    Motorcycles cost £0.75 per hour.
  •                    
    A small economical car can be as low as £0.80 an hour. The larger the car and the bigger the engine displacement the higher the per hour costs. The maximum is £3.00.
  • Your speed when going around corners.
  • Small vans cost £1.00 per hour with a maximum of £3.00 per hour for larger vans.

This guide to pay as you go delivery car insurance is simple and easy to follow. It explains the most common questions being asked about this type of hire and reward Insurance coverage.