Pay as you go Hire and Reward Insurance

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Guide to hire and reward insurance pay as you go 

By Eamonn Turley
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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 InsuranceQuotesNI Editorial Team - Fact checked

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August 2023

This a relatively new product aimed at part-time delivery drivers with the fast food sector. The product referred to as PAYG or pay-as-you-go food delivery insurance offers a straightforward way to get covered when needed. 

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’s packages. It was introduced to help provide the necessary cover for couriers who work less than 20 hours a week.  This cover is often referred to as pay as you go hire or PAYG delivery insurance

As this is the food delivery insurance only activated when providing a delivery service, it is normally added as an addition to your standard social, domestic and pleasure vehicle insurance.  

pay as you go hire and reward insurance

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.

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.

Do you need Public Liability Cover?

This type of cover provides you with financial compensation in the event that a customer takes legal action against you for injury or property damage caused by you whilst you are providing a delivery service. As couriers are open to these type of claims, public liability insurance for couriers is often bought alongside standard courier vehicle insurance. 

What is not covered by Pay as You Go Food delivery Insurance

Like standard car insurance, a pay as you go insurance policy will have limits and restrictions on what is covered and under what circumstances. Some of these we have listed below, but please check details with your policy provider.

  • Damage to goods being transported, to cover goods you will need to take out goods in transit insurance.
  • Legal cover: This can normally be added, but will be an additional extra
  • Breakdown cover: Again this is provided, but can be added or taken out with breakdown cover provider of your choice

The benefits of a PAYG delivery insurance policy

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. 

  • Affordable : This is a policy created by the demand for delivery drivers, particularly of fast food, was to have a policy that is activated only when they provide the delivery service. The only other option prior to this solution was an annual policy, which would be way more expensive if you are only working part-time as a courier.
  • Flexible: The fact that you only pay for this type of cover when you are providing the service makes it flexible. Please note that a flat fee will also apply to the policy types so if ytiy never switched it on you would still be charged a nominal flat service fee. 
  • Seasonal Workers:  If you just wish to increase your spending money over Christmas, for example, this type of policy will be the perfect solution.

Hire And Reward Insurance FAQ's

If I work for Amazon, Deliveroo, JustEat, or UberEats Will I Need this type of Hire & Reward cover?

Absolutely—we’ve put together a guide for Uber Food delivery Insurance and other to give you a more in-depth view of what insurances each company provides its drivers and what you’ll require to get signed up.

Do I need Hire & Reward insurance?

Hire and reward insurance is a legal requirement for providing any of the following services in return for a reward.

  • Private hire or Taxi service 
  • chauffeur
  • Courier
  • Haulier

The important term is reward, which does not have to be monetary. If you are simply helping a friend to move house or dropping a friend at the airport without any income in kind, then you have no need for the type of cover 

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 should be considered 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.

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