Pay-as-you-go food delivery insurance

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Pay as you go courier insurance

The pay as you go courier insurance has been around for a couple of years now and has become the preferred type of cover for the part time delivery person. This is the low cost path to having the correct level of cover for couriers while they are working delivering a third party‚Äôs packages. It was introduced to help provide the necessary cover for couriers who work less than 20 hours a week. 

What is pay as you go courier insurance?

This cover is an add-on type of cover that is classified as Hire for Reward commercial vehicle insurance as required by UK law. It is an additional cover for people that already have a social, domestic and pleasure vehicle insurance policy.

pay as you go hire and reward insurance

This add-on can be only the legal requirement level or it can also have additional sections that can be covered including Good in Transit.

What is required to have this type of add-on to your existing policy?

First and foremost the courier driver must have a social, domestic and pleasure vehicle policy in place. This can be the minimum required level of Third Party only or higher. The company providing the cover must also offer the Hire for Reward add-on. At this time there are more than 30 insurance firms in the UK that offer this type of add-on courier insurance.

How does pay as you go courier insurance work?

To activate the cover the courier needs to add the app from their insurance company to their phone. Just before the courier picks of the package, they use the app to inform the insurance company they need cover. Once the delivery is completed, the app is used again to turn off the cover. 

Insurance firms take the next step in requiring a black box installed on the vehicle making the deliveries. This makes it possible for the insurance firm to track the vehicle each time the cover is activated. Items tracked by the black box that is collected by the insurance firms include;

  • Starting and ending locations of the delivery.
  • Date and time of each delivery.
  • The path taken by the courier from its starting point to the end destination.
  • The speed is recorded along with all directional changes made during the deliveries.

It is this feature of only having Hire for Reward cover when actually making a delivery that helps keep the cost of this commercial insurance as low as possible for the part time couriers in the UK.

Are the parcels and food items also covered?

With the standard Hire for Reward insurance, only the vehicle is covered, not the items being transported. For insurance cover on these items, Good in Transit must be added to the policy. The need for this level of cover is dependent on what is being transported.

For food delivery drivers, Good in Transport is not necessary because of the low cost of replacing the food. For couriers making deliveries for online shopping portals, it is recommended because of the cost of replacing the items could be thousands of pounds. Some organizations hiring couriers require this additional coverage to help protect their merchandise while it is being transported.

The pay as you go courier insurance is the low cost solution part time couriers have been hoping for. By reducing the burden of high insurance costs, these couriers can increase their revenue stream while still being legal when they are working. 

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