How Much Does Food Delivery Insurance Cost?

Written by Zego

Published on

Food delivery driver checking address on his phone

The food delivery industry gew massively during the pandemic, especially when going out to eat was banned. Thousands of new drivers came into the business and even now, as bars and restaurants have reopened, there's still strong demand with companies like Deliveroo, Uber Eats and Just Eat growing at a rapid rate.

More drivers are coming into the industry every day, but before they get on the road, they'll need to have insurance for their vehicle.

A frequent question new drivers ask is ‘How much does food delivery insurance cost?’. Here’s all you need to know:

Why do you need food delivery insurance?

Food delivery insurance is a legal requirement for all UK food delivery drivers. Standard motor insurance, (social, domestic and pleasure, or SD&P), does not cover this type of business activity (you can learn more about that in our blog post here).

Drivers can buy food delivery cover in addition to their existing SD&P insurance, or they may buy an all-in-one policy that provides combined SD&P and food delivery protection.

Parcel delivery is also covered with most food delivery insurance policies, but the insurance does not cover the transport of passengers for payment – an activity known as private hire, which requires its own insurance.

Factors that decide how much you pay

Insurers consider many things when deciding the cost of food delivery insurance. These include:

  • Your age and driving record
  • The type of vehicle you use for delivery work
  • Past claims and accidents
  • Your no-claims discount (NCD)
  • Where the vehicle is kept when not in use

Generally, the more expensive and powerful your vehicle, the more you pay. Too many claims and penalty points on your licence also drive up the price. Younger drivers usually pay more. No NCD means you pay full premium.

But there are things you can do to lower the price tag. Using a modestly priced vehicle that doesn’t go like a rocket can keep costs down. Maintain a points-free licence. Buy NCD protection that keeps your discount safe if you have an accident. Young drivers can’t do much about their age, but if they drive safely, they can lower their insurance cost as they progress.

The type of cover you buy affects the price

There are 3 different types of food delivery insurance: Third Party Only, Third Party, Fire & Theft, and Fully Comprehensive.

Third Party Only

Third Party insurance protects other people in an accident where the delivery driver is at fault. The insurance will pay to repair or replace their vehicles and property, and cover any legal liabilities for injuries. However, the delivery driver and their vehicle isn't covered.

Third Party, Fire & Theft

This next level of cover provides all the same protection as Third Party Only, plus cover for the delivery driver’s vehicle and property if it's stolen or damaged by accidental fire.

Fully Comprehensive

This is the highest level of cover. It protects other people and the delivery driver in the event of an accident. It also covers fire and theft, as well as shattered windscreens, or theft of audio, communication and sat-nav equipment.

As you may expect, because it covers more, fully comprehensive insurance costs more.

How long do you need cover for?

It’s cheaper to buy food delivery insurance by the year. However, some drivers only need cover for seasonal or part-time work. They could purchase hourly or 30-day policies to keep the costs down.

So, what does it cost?

Here are some average Zego prices for delivery drivers with a good driving record:

Car delivery drivers may pay up to £0.80p* per hour with our pay as you go protection, or from £90* for a 30 days policy, or from £930* for the annual option.

Scooter delivery riders may pay up to £0.70p* per hour with our pay as you go protection, or from £50* for a 30 days policy, or from £890* for the annual option.

Van delivery drivers can buy cover starting at £110* for a 30 days policy, or £1,010* for the annual option.

As with most insurance policies, choosing annual cover could save you more over a 12-month period than a rolling 30-day policy. That's why it's a good idea to compare your options before buying your insurance.

  • *10% of Zego customers paid these amounts or less for their insurance in the 6 months prior to 21st June 2022.

How fast can I get food delivery insurance?

From quote to policy, you can get insured with us in less than half an hour. Choose from competitively priced food delivery insurance options, including flexible hourly, monthly and annual policies.

Download the Zego Delivery app and get a quote – it only takes a minute.