What is pay-as-you-go food delivery insurance?

Written by Zego

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The UK food delivery industry is big business. Every day, thousands of drivers carry takeaway food to homes, offices and workplaces across the nation. Using cars, vans, motorbikes, scooters, e-bikes and bicycles, they sustain our love for restaurant food without the restaurant.

Driving for one of the major delivery apps, like Uber Eats or Deliveroo, or for the local pizza store, drivers can enjoy work independence and earn the cash they need. However, before they can get on the road, they must buy food delivery insurance – a legal requirement in the UK that is sometimes called hire and reward (H&R).

One of the more flexible options for food delivery insurance is called ‘pay-as-you-go’. But what is it, and how does it work? Here’s all you need to know.

What is pay-as-you-go food delivery insurance?

Pay-as-you-go (PAYG) food delivery insurance covers drivers who deliver food in return for payment. It allows drivers to buy cover by-the-hour, instead of monthly or annually, so you only pay for insurance when you're working. This makes it a good option for part-time delivery drivers, or gig workers who want to control their costs.

PAYG insurance acts as a hire and reward (H&R) top-up for your existing social, domestic and pleasure (SD&P) vehicle cover. It allows you to make deliveries in exchange for payment, without affecting your standard insurance for personal driving.

How does ‘pay-as-you-go’ food delivery insurance work?

With our pay-as-you-go H&R delivery insurance, your cover is charged only when you're working a shift, with a minimum of 1 hour’s cover.

Here’s how it works:

  1. Starting your shift: As soon as you accept a job with any of our delivery partners (like Deliveroo), your cover will start and you’ll be charged for 1 hour (that’s the minimum charge).
  2. When you’re working: 1 hour after you accept your first job, we’ll check to see if you’re still making deliveries. If you’re still delivering, we’ll start charging you by the minute until you’ve finished your shift.
  3. If you’re no longer delivering: We’ll pause your cover automatically, end your current pay-as-you-go insurance session and the Zego Flex app will deduct the cost from your balance.

Find out more about how our pay-as-you-go (Flex) delivery insurance works.

What does Zego’s pay-as-you-go delivery insurance cover?

Our pay-as-you-go delivery insurance offers you the same level of cover as your existing SD&P insurance. It basically acts like a top-up, providing you with the same level of H&R cover as your underlying standard motor insurance (that could be Third Party Only all the way up to Fully Comprehensive).

What other types of food delivery insurance are there?

Along with our hourly pay-as-you-go insurance, you can also buy delivery cover by the month or by the year.

  • 30-day monthly insurance

Flexible short-term cover suited to drivers who work seasonally, or who also work in other types of industry.

  • Annual insurance

Long-term, cost-effective cover for drivers who work in the food and parcel delivery industry full-time.

What do I need to get food delivery insurance?

To buy our food delivery insurance you'll need:

  • A full UK/EU driving licence, or CBT for scooters (max engine size 125cc)
  • No more than 2 claims in the last 3 years (regardless of fault)
  • Aged 21–75 (21-65 for Scooters)
  • You are the vehicle owner or registered keeper
  • You live and work in England, Scotland, or Wales
  • The current vehicle value is less than £30,000 (for cars)
  • You work for one (or more) of our partnered work providers (for scooter riders)

How can I buy food delivery insurance?

That one's easy! Simply download the Zego Delivery app and get a quote – it only takes a minute.