Pay As You Go Food Delivery Insurance

Delivery drivers find a great deal on (PAYG) Pay as you go food delivery insurance, One short form – save time & money

Don’t have your registration number? No problem, click here.

Policies and deals from industry leading insurance providers, including

Tailored quotes from a panel of food delivery insurance specialists

What is pay as you go delivery insurance (PAYG)?

By Eamonn Turley
Eamonn Turley Insurance Expert

Eamonn Turley has a wealth of experience within different insurance sectors. Through hard work and over time, he has gained expertise in digital marketing and user interface design. Elements that are crucial to any successful online business. The key aim is to develop websites that are intuitive, fast to load and provide insurance quotes tailored to your needs.

Expertise: Digital Marketing, Insurance, Home Insurance, Vehicle Insurance, UI Design
from the MultiQuoteTime Editorial Team - Fact checked

The team at MultiQuoteTime will fact-check content to ensure accuracy at the time of writing. In addition, we also review and update content on an ongoing basis. We aim to keep the content fresh and useful. If you are considering applying for any of the products, please take note that it is important that you read the terms and conditions that are applicable

March 2024

This type of cover is a form of hire and reward insurance and provides you with the necessary legal cover for you to work as a delivery driver. The PAYG Delivery Insurance is only activated when you are working and making delivers. 

The amount you pay for cover is simply but based on usage. The more you use, the more you pay and vice versa. This makes it a good fit for those that work on a part-time or seasonal basis to supplement their income. 

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 food delivery insurance. The pay as you go or use model (PAYG) is relatively new to the UK insurance marketplace. First introduced in 2013 under the Cuvva brand. In basic terms, it allows customers to buy pay-as-you-go insurance via an app. 

The pay as you use approach provides a form of temporary insurance that covers you for providing a delivery service. This disruptive technology is popular in all sectors of the UK insurance market. PAYG courier insurance is an offshoot and is perfect for fast food delivery drivers that operate for the local takeaway or via Deliveroo. ZEGO insurance was one of the first to provide this insurance model for delivery drivers and couriers.

The pay as you go fast food 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 is the ideal coverage for part-time delivery drivers who work less than 20 hours a week or on a seasonal basis. 

How does Pay as you go food delivery insurance work?

The process is simple. If you are not an existing customer, you must first create a central insurance management account with an insurance agent that offers payg cover.  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 using your firm reference number. When you are done making the delivery, you deactivate the coverage. If you provide a delivery service by bike or scooter, you can also apply for PAYG bike insurance.

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

Pay per use model has gained popularity in the food delivery sector and also the car rental industry. Rental car companies need only activate the insurance when they actually rent out the vehicle. 

In summary, the pay as go (PAYG) model is normally available as on a pay per mile or pay per time basis. This payment on actual usage will be in addition to a flat rate that you pay even if you were never to use your car. It still works out cheaper if you do less than 6,000 miles per year or as in the case of the delivery sector you need extra cover on top of your existing car insurance policy.

  • Pay per mile : This model will employ a telemetric device that records miles driven, and the cost is then based on actual miles driven, this will benefit occasional users.
  • Pay per hour : Similar to pay per mile, the charge will be based on the actual time on the road and not the number of miles. 

What data does the Black Box Track when activated?

The black box is a telemetric device that records how the person drivers. It is able to record your location, speed of travel, how you drive smooth or always braking and accelerating to give you an overall score.

  • The times that you speed making deliveries.
  • 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 that you need, like hours making deliveries. If you need fast food delivery insurance, it may be prudent to look at pay as you go insurance options.

What are the Benefits of PAYG Fast Food Delivery insurance

The key benefit is that you will only pay when your are workinbg as a delivery driver, making it perferct for part time or thies gthat work during peaks season to supllement inclidme

  • Flexible : As we touched on, the one big advantage of this type of cover is that it is only activated when you are actually working.  
  • Affordable: This type of policy will for most work out cheaper, as you only pay for what you use. For those that work long hours, every day it may not be the cheapest option  
  • Switch or Suspend : If you are just testing the waters and not sure if you will commit full time, then this policy wins over having to pay up front for an annual cover. 

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 and your driving history and your age will all play important factors into the cost of pay as you go food delivery insurance per hour or mile.

The list below is a rough guide to 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.

Vehicle TypeCost per hour
A small economical car £0.80
Large car with bigger the engine displacementRange £0.80 - £3.00
Small Van£1.00
Larger VanMaximum of £3.00 per hour for larger vans

Compare PAYG Food Delivery Insurance

  • Cover for Uber, Just Eat & Deliveroo delivery drivers
  • One short form – save time & money
  • PAYG delivery insurance Pay by Mile / By Hour
  • Compare & see if you can save today!
pay-as-you-go delivery insurance

PAYG - Pay as you go delivery Insurance FAQ's

If I work for Amazon, Deliveroo  Just eat Uber Eats, Do I Need Hire & Reward?

Special delivery insurance is required if you work for any of these companies. See our guide for Uber Eats delivery insurance.

What are the different types of cover available with PAYG car insurance?

Pay as you go insurance is normal only available as fully comprehensive cover, but some brokers will also provide third party level, the legal minium.

What type of insurance covers food delivery?

The type of insurance required for the delivery of food is a form of hire and reward insurance. Standard car insurance will just provide cover for social, domestic and pleasure use plus travel to and from work. This type of cover is inadequate for delivering food and if stopped you could be charged with driving without insurance.  Food delivery insurance is a specific product developed to provide cover for those that work in food transportation services, some examples include Deliveroo, Uber Eats, and Just Eat.

Scroll to Top