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, a small army of drivers carry take-away 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.

One choice of Food Delivery insurance is called ‘Pay as You Go’, but what is this, 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’ (PAYGo) Food Delivery insurance is a vehicle policy that covers workers who deliver food in return for payment. PAYGo insurance sits on top of the driver’s existing Social, Domestic and Pleasure (SD&P) vehicle cover. PAYGo policies allow drivers to buy by the hour, instead of monthly or annually, which avoids paying for insurance when the driver is not working. PAYGo is ideal for part-time delivery drivers and for those who want to keep a tight grip on costs.

How does ‘PAYGo’ Food Delivery Insurance work?

After buying a PAYGo policy, delivery drivers sign into their PAYGo account via their mobile phone. When they are making deliveries, they simply activate the insurance, which gets paid for via a credit or debit card registered to their account. Cover is purchased in hourly units. When they stop working, drivers switch the policy off and the billing session ends.

What does Zego’s ‘Pay as You Go’ Food Delivery Insurance cover?

Zego’s PAYGo Food Delivery insurance comes as: Third Party, or Fully Comprehensive.

  • Third Party – or Third Party, Fire & Theft

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 legal liabilities for any injuries they incur. However, this type of cover does not protect the delivery driver’s vehicle or property. Should their vehicle be written-off, or need very expensive repairs, it could be catastrophic to the driver’s livelihood. Delivery drivers can add insurance in the form of Fire & Theft protection to this cover. This will pay them in the event their vehicle is stolen, or damaged by accidental fire.

  • Fully Comprehensive

This is total cover. It protects third parties and the delivery driver in the event of an accident where the delivery driver is at fault. As well as compensating other persons, it also pays to repair or replace the delivery driver’s vehicle. Fire and theft, as well as cover for a shattered windscreen, or theft of audio, communication and sat-nav equipment is usually included with this kind of policy.

How much does Zego’s ‘Pay as You Go’ Food Delivery insurance cost?

On average, PAYGo Food Delivery insurance for drivers who have a good driving record costs:

Up to £0.80p* per hour for car drivers.

Up to £0.70p* per hour for motorbike and scooter riders.

*10% of Zego customers paid these amounts or less for their insurance in the 6 months prior to May 26th, 2022.

What other types of Food Delivery insurance are there?

Zego’s Food Delivery insurance can also be purchased by the month, or by the year.

  • 30 days monthly insurance

Flexible short-term cover to match driver work schedules. Suitable for drivers who work seasonally, or who also work in other types of industry.

  • Annual policies

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 Zego’s Food Delivery insurance you 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 (Cars)
  • You work for one (or more) of Zego’s partnered work providers (Scooter)

How fast can I get Food Delivery insurance?

Very fast with Zego. From quote to policy in less than half an hour. Discover competitively-priced Food Delivery insurance that may save drivers £hundreds every year. Select third party or fully comprehensive cover with flexible hourly, 30 days, or annual policies.

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