What is Hire and Reward Insurance?

Written by Zego

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Whether you’re a full-time delivery driver with years of service, or just starting out with Uber or Bolt, you need the right type of insurance to keep you covered while you work.

Hire and reward is a type of motor insurance that allows drivers to carry parcels, packages or people in return for payment. It covers you for any damages or vehicle repairs if you're involved in an accident. And it can also include public liability cover to protect you if somebody gets injured.

delivery driver opening delivery bag

So if you’re working as a courier, a delivery driver or a private hire taxi driver, you’ll need hire and reward insurance for your vehicle.

You might also hear it referred to as ‘carriage of goods for hire and reward’, or just H&R for short.

What type of vehicle can I use for hire and reward work?

You can insure most types of vehicles for hire and reward work. So if you’re couriering parcels in a van, delivering fast food on a scooter, or driving passengers in a car, you should be able to get a hire and reward policy that covers you for the type of work you do.

Is hire and reward the same as business insurance?

Hire and reward is different from most business class insurance policies. While it is a type of commercial motor insurance, it covers you for a different type of work.

For example, some business class policies only cover you if you’re travelling between two set locations to deliver goods, rather than from a depot or restaurant to lots of different addresses. And other business insurance policies only cover employees who use their car to visit clients or make regular journeys to other offices or sites.

With hire and reward insurance, you’re covered for all types of private hire driving, food deliveries and courier work.

Do courier drivers need hire and reward insurance?

Courier drivers who deliver goods using their own vehicle are required to take out a hire and reward policy. It covers you for making deliveries of parcels and packages in return for payment. So if you’re involved in an accident while you’re working, your H&R insurance will protect you against vehicle repair fees and legal expenses.

Does hire and reward cover food delivery?

Yes, you can work as a food delivery driver using a hire and reward insurance policy. You’ll be covered to deliver food using your car or scooter, and most H&R policies include public liability in case you’re involved in an accident and found to be at fault.

Fast food delivery platforms like Uber Eats and Deliveroo might have specific requirements. So if you need hire and reward insurance for the deliveries you make, it’s a good idea to check before you buy a policy.

What types of hire and reward policies are available?

Most insurers offer two different types of hire and reward policy: Third Party Only, and Fully Comprehensive. Third Party policies only cover other people, so if you’re involved in an accident, they’ll be protected but you won’t. Fully comprehensive covers you and other people. It’s the top level of hire and reward insurance cover.

What’s the difference between Third Party Only and Fully Comprehensive?

The main difference is that Third Party Only covers other people and their property, while Fully Comprehensive covers you and your vehicle, plus other people and their property. So if you’re involved in an accident and you’re covered with Fully Comprehensive insurance, you get more peace of mind that you’ll be totally protected against vehicle repair fees, legal expenses and compensation payouts.

Here are the main differences between the Third Party Only and Fully Comprehensive H&R policies we offer:

Is hire and reward insurance expensive?

Hire and reward insurance tends to be a bit more expensive than regular insurance (known as social, domestic & pleasure). That’s because, as a driver using your vehicle to earn money, you’re likely to cover a lot more miles than an average driver. You’re also likely to drive in busier areas at busier times of the day.

These things increase your risk of being involved in a traffic accident, so hire and reward policies will typically cost more than regular car insurance policies.

Here are a few things you can do to help lower the cost of your hire and reward insurance:

  • Try to keep your licence free from points and penalties.
  • Take out no claims discount (NCD) protection.
  • Choose a moderately-priced vehicle, and fit extra security features like immobilisers and tracking devices.
  • If you can, keep your vehicle in a locked garage or on private property overnight.
  • Choose an app-based insurance policy that gives you discounts when you drive well (check out Zego Sense for more on that).

Can I deliver for Amazon Flex with hire and reward insurance?

Yes, you can deliver for Amazon Flex with a hire and reward policy. It’s a legal requirement in case you have an accident while you’re working. You’ll also need social, domestic and pleasure insurance — that’s the standard type of motor insurance you use for personal driving (like trips to the shops or to visit friends).

With both H&R and SD&P insurance, you’ll be covered while you work, and also between shifts or when you’re driving home at the end of the day. Check out our blog to learn more about the insurance you need to work for Amazon Flex.

How do I get a quote for hire and reward insurance?

If you already have a social, domestic and pleasure policy for personal driving, talk to your insurer to see if they also offer hire and reward insurance. For most delivery and private hire work, you’ll need both types of insurance in place.

Here at Zego, we offer all-in-one insurance for van couriers, food delivery drivers and private hire taxi drivers. You get hire and reward insurance, plus social, domestic and pleasure cover in one simple policy. Plus we also include public liability cover in case you’re involved in an accident and found to be at fault.

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