Hire And Reward Insurance
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Get the cover you need to deliver food, parcels or goods for work.
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What Is Hire And Reward Insurance?
Hire and reward insurance is a type of commercial motor insurance that covers you when you use your vehicle to carry goods or passengers in exchange for payment.
Standard car or van insurance only covers social, domestic and pleasure use. If you deliver parcels, food or freight for money without the correct policy, your insurer can reject any claim and you could face prosecution under the Road Traffic Act 1988.
Hire and reward cover sits between standard social use and full haulage insurance. Read our guide on how courier insurance differs from hire and reward for a full breakdown.
How To Compare Hire And Reward Insurance Quotes
Comparing quotes takes a few minutes and could save you hundreds on your annual premium.
Enter your details
Provide your name, address, driving licence details and the vehicle you use for deliveries. Include your annual mileage and the type of goods you carry.
Choose your cover level
Select from third-party only, third-party fire and theft, or comprehensive. Add optional extras such as goods in transit or breakdown cover.
Review your quotes
Results appear side by side so you can compare premiums, excesses and cover limits. Check that each policy is underwritten by an FCA-authorised insurer.
Buy your policy
Once you have chosen, you can buy online or over the phone. Your cover can often start the same day.
What Does Hire And Reward Insurance Cover?
A hire and reward policy protects your vehicle, your liability to other road users and, with the right add-ons, the goods you carry.
Third-party liability
Every policy includes cover for damage or injury you cause to other people or their property while driving for work. This is the legal minimum required to drive on UK roads.
Vehicle damage and theft
Comprehensive policies cover accidental damage, fire and theft of your own vehicle. This matters for couriers who rely on a single van or car to earn a living.
If your vehicle is written off, your insurer will pay the market value so you can replace it and get back on the road.
Goods in transit protection
Standard hire and reward policies do not automatically cover the items you carry. You need a goods in transit (GIT) add-on to protect parcels, food or freight against damage, theft or loss during delivery.
GIT limits typically range from £5,000 to £30,000 per consignment. Choose a limit that matches the highest-value load you are likely to carry.
Public liability
Public liability insurance covers compensation claims if a member of the public is injured or their property is damaged because of your work. Cover usually starts at £1 million.
Employers' liability
If you employ anyone, even a single helper, employers' liability insurance is a legal requirement. The minimum cover is £5 million per claim.
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What Types Of Hire And Reward Insurance Can You Get?
There are three main cover levels, each adding more protection on top of the one below.
Third-party only (TPO)
TPO is the legal minimum. It covers damage or injury you cause to third parties but nothing for your own vehicle.
This is the cheapest option but leaves you exposed if your vehicle is damaged or stolen.
Third-party, fire and theft (TPFT)
TPFT adds cover for fire damage and theft of your vehicle on top of standard third-party protection. It costs slightly more than TPO but protects you against two of the most common risks for delivery drivers.
Comprehensive
Comprehensive cover includes everything in TPFT plus accidental damage to your own vehicle, windscreen repair and personal injury protection. Most full-time delivery drivers choose this level.
| Cover Level | Third-Party Damage | Fire and Theft | Own Vehicle Damage | Windscreen |
| TPO | Yes | No | No | No |
| TPFT | Yes | Yes | No | No |
| Comprehensive | Yes | Yes | Yes | Yes |
What Is Not Covered By Hire And Reward Insurance?
No insurance policy covers everything. Knowing what is excluded helps you avoid unpleasant surprises at claim time.
Personal use without declaration
Some policies only cover you while driving for work. If you also use the vehicle for personal trips, you need to declare social, domestic and pleasure (SDP) use or take out a separate policy.
Unlicensed or disqualified drivers
Any driver on the policy must hold a valid UK or EU driving licence. Claims made while a driver is disqualified, banned or has an expired licence will be rejected.
Driving under the influence
Driving while impaired by alcohol or drugs invalidates your cover entirely. Your insurer may also cancel the policy and report you to the police.
Wear and tear
Mechanical breakdowns caused by normal wear and tear are not covered. You can add breakdown cover as an optional extra if your vehicle is used heavily.
Goods left unattended
If goods are stolen from an unlocked or unattended vehicle, most insurers will reject the claim. Always lock your vehicle and keep valuables out of sight.
See what happens without courier insurance for the wider consequences of gaps in your cover.
Who Needs Hire And Reward Insurance?
Anyone who uses a vehicle to carry goods or passengers for payment needs hire and reward cover, regardless of whether it is full-time or occasional work.
Parcel and freight couriers
Drivers delivering parcels for networks like Evri, DPD or Royal Mail need courier insurance with a hire and reward extension. Self-employed couriers are responsible for arranging their own cover.
Food delivery drivers
Platforms such as Uber Eats, Deliveroo and Just Eat all require drivers to hold valid food delivery insurance before accepting orders.
Private hire and taxi drivers
Private hire and taxi drivers carrying passengers for a fare need hire and reward cover. Standard social use policies do not protect you when carrying paying passengers.
Fleet operators
Businesses running two or more delivery vehicles can reduce costs with courier fleet insurance, which covers every vehicle under a single policy with one renewal date.
Haulage and removal drivers
Drivers transporting furniture, equipment or heavy goods on a single-drop basis may need haulage insurance rather than standard hire and reward cover, depending on the size and weight of the load.
| Driver Type | Typical Vehicle | Key Cover Needed |
| Parcel courier | Van (up to 3.5t) | Hire and reward, GIT, PLI |
| Food delivery driver | Car, moped or bicycle | Hire and reward, PLI |
| Private hire / taxi | Car | Hire and reward, PLI, passenger liability |
| Fleet operator | Multiple vans | Fleet policy, ELI, GIT |
| Haulage / removals | HGV or large van | Haulage cover, GIT, PLI |
How Much Does Hire And Reward Insurance Cost?
Annual premiums typically range from £800 to £2,500 depending on your vehicle, cover level, location and claims history.
What affects your premium
Insurers price policies based on your age, driving record, vehicle type, annual mileage and postcode. Younger drivers and those in urban areas generally pay more than experienced couriers in rural locations.
The goods you carry also matter. Drivers transporting high-value items like electronics pay more than those delivering standard parcels or food.
Pay-as-you-go vs annual policies
Pay-as-you-go insurance charges by the hour and suits part-time drivers who work fewer than 20 hours a week. Full-time drivers almost always save money with an annual policy.
Monthly payment plans are available but usually add 15 to 25% in interest charges over the year. Paying annually removes this cost entirely.
Worked example
A 30-year-old food delivery driver in Manchester using a 2020 Vauxhall Corsavan with one year of no-claims bonus might pay around £1,400 per year for comprehensive hire and reward cover with £10,000 GIT protection.
| Cover Level | Annual Premium Range |
|---|---|
| Third-party only (TPO) | £800–£1,400 |
| Third-party, fire and theft | £1,000–£1,800 |
| Comprehensive | £1,300–£2,500 |
How Does A Hire And Reward Insurance Claim Work?
Knowing the claims process before you need it means you can act quickly and avoid delays that could keep you off the road.
Report the incident promptly
Contact your insurer as soon as possible after an accident, theft or goods damage. Most providers have a 24-hour claims line and require notification within 24 to 48 hours.
Gather your evidence
Photograph any vehicle or goods damage, collect the other driver's details if applicable, and note the time, date and location. Dashcam footage can speed up the process considerably.
For goods in transit claims, keep delivery manifests and proof of goods value. Your insurer will need these to process the claim.
What happens after you claim
Your insurer will assess the claim, appoint a loss adjuster if needed, and arrange repairs or a settlement. Simple claims are typically resolved within two to six weeks.
If your vehicle is off the road, check whether your policy includes a courtesy vehicle. Without one, you may need to hire a replacement at your own cost.
How To Save Money On Hire And Reward Insurance
Hire and reward insurance is one of the biggest costs for delivery drivers, but there are practical ways to reduce your premium without cutting cover.
Pay annually instead of monthly
Monthly instalments include interest charges of 15 to 25%. Paying in full upfront removes this cost entirely and can save £150 to £350 per year.
Build a no-claims bonus
Each claim-free year earns a discount that builds over time. After five years, most insurers offer discounts of up to 60%.
Increase your voluntary excess
Choosing a higher voluntary excess reduces your premium because you agree to pay more towards any claim. Set it at a level you could cover from one week's earnings.
Install security devices
Fitting a Thatcham-approved alarm, immobiliser or GPS tracker can lower your premium. Insurers reward lower theft risk, and a basic Thatcham S7 tracker typically costs £200 to £500 installed.
Choose a smaller vehicle
Smaller, lower-powered vehicles cost less to insure. If your work allows it, using a car or small van instead of a large panel van can cut your premium by 10 to 20%.
Use telematics
Some insurers offer lower premiums for drivers who fit a telematics device, similar to a black box policy. Safe driving scores can reduce costs, particularly for younger or newer drivers.
Consider adding no-claims bonus protection to your policy. It costs a small amount extra but means a single claim will not wipe out years of discount.
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Frequently Asked Questions
Yes, if you use your vehicle to carry goods or passengers for payment, you must have the correct hire and reward cover. Driving without it is an offence under the Road Traffic Act 1988.
Hire and reward is the broader category that covers any paid transport of goods or passengers. Courier insurance is a specific type of hire and reward cover designed for multi-drop parcel and package delivery.
No, personal car insurance covers social, domestic and pleasure use only. If you deliver goods or passengers for payment, you need hire and reward cover.
Yes, delivering food commercially through apps counts as hire and reward. Your personal policy will not cover you while making paid deliveries.
Hire and reward covers drivers making multiple local deliveries. Haulage insurance is designed for drivers transporting single large loads over longer distances, typically using HGVs.
Yes, fleet policies allow you to cover two or more vehicles under a single policy with one renewal date. This often works out cheaper than insuring each vehicle separately.
You could receive a fixed penalty of £300 and six points on your licence, or face an unlimited fine and a driving ban if prosecuted in court.
Standard hire and reward policies cover your vehicle and liability but not the goods you carry. You need a separate goods in transit add-on to protect items against damage, theft or loss during delivery.
Monthly costs depend on your cover level and circumstances. A typical comprehensive policy costs £110 to £210 per month, though paying annually is usually cheaper overall.
Yes. Amazon Flex drivers use their own vehicles and need hire and reward cover because Amazon's insurance does not protect the driver's vehicle or personal liability.
Yes. All UK insurance providers must be authorised by the Financial Conduct Authority and meet the standards set by the Association of British Insurers.
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