Hire and Reward Insurance Van & Car Comparison
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 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
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.
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
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.
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
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;
|Types of Vehicle Insurance||Comprehensive||Third Party Only||Third Party plus Fire & Theft|
|Cover if your vehicle is damaged in an accident||✔||No||No|
|Cover for your vehicle if damaged in a fire or stolen||✔||No||✔|
|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.
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.
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