Hire and Reward Insurance for Car & Van Comparison

Hire and Reward Insurance Van & Car Comparison

  • Delivery insurance for drivers
  • Covering drivers aged between 21 - 84
  • All modes of delivery ( car, van and bike)
  • Hire and reward car insurance
  • Hire and reward van insurance
  • Monthly payments

What is hire and reward insurance?

Hire and reward insurance provides you with insurance required to provide a service  using your car or van in return for a reward. The reward does not have to be money, example it can be a benefit in kind, 

For couriers, having the correct type of hire and reward insurance is important so you, your vehicle and your business will have the protection it needs. This classification of insurance is used for those in the courier businesses where they are paid to take a package, food items or a person from one location to its destination.

hire and reward insurance

Hire and reward insurance covers any service that a vehicle is used, resulting in a reward. If you ferry passengers for reward as an Uber driver you will need Uber insurance, which is a form of private hire insurance. If you are or intend to use your car  for such purpose you will need a hire and reward car insurance policy.

Is Hire & Reward Insurance a legal requirement?

Yes, it is a legal requirement to have insurance for moving goods for business or commercial purposes. The panel of UK brokers can provide hire and reward insurance quotes for a wide range of vehicles and professions. We have listed a few examples of professions and vehicles below.

  • Haulers
  • Minicabs, Taxi Drivers and Chauffeurs
  • Couriers
  • Furniture Movers 
  • Towing services

What types of professional drivers needs hire and reward insurance?

Hire reward insurance is commercial business insurance for professional drivers. The cover is  required for those who deliver packages, food items, private and public taxi drivers, long haulers, ride-share, furniture drivers and car hire and reward couriers. If you are transporting a person or a third party’s property for payment, you need this type of cover as required by UK law.

What type of vehicles can a courier use?

Most couriers use a vehicle under 3.5 tonnes, except long haulers. The vehicles under 3.5 tonnes include vans, minibuses, cars, trucks and black cabs. Courier van insurance is the most popular product, but the panel can provide quotes for all vehicle categories.

What does hire and reward car insurance cost?

This will depend on a range of factors. Some of the more important factors would be your driving history, value of van, value of cargo that you will be couriering. The van insurance is available at three levels, but you need that additional courier cover if you are using your van for hire and reward.

Why is hire and reward insurance so expensive?

Hire & reward insurance is more expensive than standard car or van insurance because delivery drivers pose a higher risk to the underwriter. Why? Because delivery drivers are on the road all day, making multiple stops. Some drivers are running against the clock and must make delivers regardless of prevailing weather conditions.  Food delivery drivers are constantly checking their app for directions and often the direction take them down roads that are new to them. All these facts all lead to you being a higher risk, which is reflected in a higher premium. Some brokers will not even offer cover to young and inexperienced drivers.In summary, deliver drivers need a specialist cover that recognises and takes into account that they are in a higher risk category than normal social or business drivers.

Does hire and reward insurance cover food delivery?

Hire and reward will cover food delivery insurance, including fast and hot food deliveries by restaurants and takeaways

What is the difference between haulage and courier insurance?

If you are using your van to delivery goods you will need van courier insurance. Haulage insurance is the traditional type of insurance that you would associate with larger trucks that move a shipment of goods from A to B. The destination is not always clear-cut, but the broker can advise based on the information that you provide.

  • Courier : Tailored to a delivery service with multiple drops  during the working day. 
  • Haulage :  Aimed at larger vehicles HGV that delivery one load over a larger distance. Live stock hauliers being a good example.

What insurance do I need for a courier?

For most couriers this is a class 3 business policy. The levels of protection include the following;

  • Third Party Only is protection for the other person's vehicles and their medical bills when you are at fault in an accident. This is the minimum level required by law. You, your vehicle nor the goods you are transporting have any protection.
  • Third Party Fire and Theft is the same as third party along with your vehicle being covered if it is damaged by a fire or is stolen.
  • Comprehensive covers both you and the third party involved in an accident. Both vehicles will be repaired and medical bills for both parties will be paid.
Types of Vehicle Insurance ComprehensiveThird Party OnlyThird Party plus Fire & Theft 
Cover if your vehicle is damaged in an accidentNoNo
Cover for your vehicle if damaged in a fire or stolenNo
Compensation for passengers and others
Cover for damage to the property of a third party

Are there any add-ons that should be considered to hire and reward insurance?

The above cover only addresses the road risk, but not the contents you are transporting. To cover the items or the people you are transporting, a carriage of goods for hire and reward policy is needed. The level of cover required is dependent on what is being transported and its value. For couriers transporting high end and valuable items, the cost of this insurance is higher than food delivery drivers because the replacement cost will be higher. 

Public liability is another add-on that is advisable, especially for the private hire courier. This is protection if a third party makes a claim of being injured or their property damaged due to your services. This coverage handles the court fees, legal fees and any settlement in the case.

For the courier service that has employees, employer's liability cover is required by UK law. This cover pays the medical bills if an employee becomes sick or injured while working for you.

Why does hire and reward insurance cost more than insurance for social and pleasure type of policies?

By being a professional driver, the level of risk associated with your job is higher than with a driver going to work or on holiday might be. The increase in risk is associated with driving more miles along with being on the road during busy rush hours mostly in the inner cities where more hazards are present. Many couriers are also under a time restraint. Working against the clock might cause the driver to take more risks while driving to meet the needs of their supervisors. 

If I just carry tools and goods for my trade do I need to take out hire and reward insurance?  For example, builders, electricians or carpet fitters. This is different and in this case you need carriage of goods insurance to cover your trade tools.

How can I save money on hire and reward car insurance premiums?

Reducing the premium is possible if you can reduce the risk that you pose to the broker. We have listed some areas that action can be taken to get a  cheaper hire and reward insurance quote.

  • Keep the size of your vehicle to a minimum and if possible use one with a small displacement engine which helps to reduce the risk the vehicles pose. The bigger the vehicles with a large engine pose a higher risk to the insurance company raising the cost of the premium.
  • The location of the courier vehicle is stored when not in use is a factor in how much the premium will be. The lowest risk is parking it off the street in a locked and secure building with a security system to help ward off thieves.
  • It is also advisable to pay your premium on an annual basis.
  • Excess: The excess is the amount that you would be liable for in a claim against you. All polices come with an excess similar to when you rent a van you will have local excess. By speaking with your broker, it is possible to increase your excess liability in return for a lower premium. Read this in depth guide on van rental excess insurance within the UK and how you can take extra cover to waive it.
  • Clean Licence : With speed cameras everywhere you need to a good law-abiding driver to avoid points on your licence, if you drive within speed limits and avoid driving conviction you will be rewarded with a cheaper insurance than car insurance with points on your licence
  • If you only work a  few hours per week as a courier a pay as you go hire and reward policy should work out cheaper than an annual policy.  

Read our FAQ's

Do food delivery drivers need hire and reward insurance?

Most food delivery drivers will need to take out hire and reward insurance. In some cases, the restaurant or café may provide you with a delivery vehicle that is covered for food delivery. In most cases you will be using your own mode of transport car, van or bike and your standard vehicle insurance policy will not provide cover for food delivery. You can opt for an annual policy, a monthly hire and reward policy. If you only work occasionally, or it is a part-time gig, look at a pay as you go food policy. Read our an in-depth guide to pay as you go delivery insurance if you'd like to know more

What van types are covered with a hire and reward policy?  

Quotes are available for all van categories, we have listed these below. If your van has been modified, this may impact the quote, and you must notify the broker during the quote process. Failure to notify the broker of any modifications can invalidate your cover. A good example of a typical van modification is the addition of a lifting ramp. 

  • Pickup Truck - Rear can be open or closed, for personal or business pickup up insurance (without hire the reward click element click here).
  • Micro Van : These are popular with delivery drivers, the rear can be raised.
  • Panel Sides Medium:  These are based on standard cars, but with the rear enclosed and with a raised roof
  • Box / Large: This is the traditional workman van with a rear without windows and is popular with tradesmen or a large delivery business 

Do Uber drivers need Hire & Reward insurance?

Uber drivers also come under the title of private hire drivers. Drivers for private hire are different to taxi drivers as they can not be hailed and must be ordered in advance. Uber drivers need a hire and reward policy specific to their needs. Have a look at our detailed guide on private hire insurance for more details. 

Get hire and reward insurance tailored to your business requirements

A courier driver insurance  or any hire for reward policy should be tailored to your specific needs. By completing one simple form provided by QuoteSearcher you will receive multiple quotes from a panel of UK specialist insurance providers. These quotes can be tailored to fit your exact requirements within your service sector.

Helpful Links

BIB: The British Insurance Brokers' Association is the UK's leading general insurance intermediary organisation

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