UK Hire and Reward Insurance

What is UK Hire and Reward insurance?

Multi Quote Time works in partnership with Quote Zone who provide a simple form which once completed is submitted to a specialist panel of brokers. These brokers will be in contact via the telephone to provide you with options and their best quotes.

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.

Types of Hire and Reward insurance

Hire and reward insurance will normally fall into one of the following categories:

Is Hire & Reward Insurance a Legal Requirement in the United Kingdom?

Hire and reward insurance is a legal requirement if you are transporting goods or passengers for a reward, normally a payment. 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.

Who Needs Hire and Reward insurance?

This type of cover is required for those who deliver packages, food items, private hire drivers, public taxi drivers, long haulers, ride-share, furniture removal drivers are just some examples of the business categories that this type of cover is required to operate legally

Why is Hire and Reward Van Insurance Expensive?

Hire and reward van insurance tends to be more expensive than standard car or van insurance.  The key reason is that the use poses additional risk to the insurance company.  Accidents are more likely given the nature of the job, constantly on the road working to a tight delivery schedule. Consider the following:

All these factors lead to a higher risk profile in terms of insurance, 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.

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.

What Level of Cover is Available for Couriers?

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

Additional Coverage Options:

The above cover only addresses the road risk insurance element, 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.

Does a Vehicle Rental Business Need Hire and Reward insurance?

The growth in the staycation industry has created a new demand for self hire vehicles in campervan sector and car rental sectors. For those that are staring out as a new venture, hiring out any type of vehicle you will need a specific type of cover referred to as self drive hire insurance or pay as you go self drive hire insurance 

Take steps to lower the cost of UK Hire & Reward Insurance

Reducing the policy 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.

How much does hire and reward insurance cost?

The cost of hire and reward insurance in the United Kingdom will be based on a number of factors that will vary for each individual or business, as such it is difficult to give an exact figure, but expect to pay more than you would for business use car or van insurance to cover additional risk.

The key factors that go towards calculating the insurance costs include the type of vehicle and insurance bracket.   What goods are being couriered in terms of increased risk to the insurance company. The driver’s experience and claims history will also play an important factor in arriving a t a final premium costs. The type of cover will also impact the costs, traditional full comprehensive cover is the most expensive, but third party cover prices have been increasing as insurance companies are finding the number of claims was proportionally higher with this lower level of cover

UK Hire And Reward Insurance FAQ's