Hire & Reward Insurance

Hire and reward insurance is a commercial motor policy that covers you to carry goods or passengers in exchange for payment. If you deliver food, drop off parcels or drive private hire, it's the cover that keeps you legal while you work.

The "reward" part is the key: the moment you're paid to transport something or someone, a standard car policy no longer covers you. That applies even if delivery is a side hustle on top of a normal job. In the eyes of the law and your insurer, you're driving for hire and reward the minute money changes hands.

A hire and reward policy covers damage or repairs to your vehicle if you're in an accident, plus legal costs and compensation if someone is injured. It's a legal requirement for anyone working as a private hire driver, a van courier or a food delivery driver.

If you're paid to carry goods or passengers, yes. Standard car insurance won't cover you, and neither will most business policies.

This trips a lot of drivers up, so it's worth being clear about the three classes of use:

• Social, domestic and pleasure (SD&P) covers everyday personal driving: the shops, the school run, visiting friends. It doesn't cover any paid work.
• Business use covers driving for your own work, like visiting clients or different offices. It still doesn't cover carrying other people's goods or passengers for payment.
• Hire and reward (H&R) is the cover you need to deliver food, drop parcels or drive private hire.

Getting this wrong can be costly. If you make deliveries on an SD&P or business policy and have an accident, your insurer can refuse the claim. You could also face a fine, points, or worse if someone is hurt. Platforms know this too: Just Eat, Uber Eats, Deliveroo and Amazon Flex all check your certificate of insurance before you can start earning.
If you're unsure which cover fits, the simplest rule is to describe your work accurately and start from hire and reward. Whether you deliver in a car, on a scooter or in a van, there's a policy built for it.

There's no single price. It depends on your vehicle, your age, where you live, your claims history and how much you drive. Because delivery and courier drivers spend more time on the road, and often in busy areas, premiums are higher than for a standard personal policy.

The bigger factor is how you buy:

• Pay-as-you-go suits part-timers. You only pay for the hours you work, so light users often pay least overall.
• 30-day cover gives you a fixed monthly cost, useful for seasonal or trial periods.
• Annual cover is usually the best value if you drive full-time. You don't have to pay for the full year upfront — spread it across the year instead with Zego Credit*.

A few things can bring the price down. Paying annually rather than monthly avoids interest, parking somewhere secure overnight helps, and a clean claims record makes a real difference. The cheapest option on paper isn't always cheapest for you, so match the policy to how often you actually drive.
The fastest way to find your price is to get a quote. It takes a few minutes and the number is personalised to you.

*Zego Credit is subject to status and eligibility. Credit isn't guaranteed.