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 transport goods or passengers in exchange for payment, and it is a legal requirement for anyone earning money through courier, delivery, or private hire work.
Standard motor insurance does not cover commercial delivery or passenger-carrying activity. If you work as a courier, food delivery driver, or private hire taxi driver, you need hire and reward cover before you can legally operate.
This guide explains what hire and reward insurance covers, who needs it, what policy types are available, how much it costs, and how it differs from standard business use insurance.
Business use insurance does not cover delivery or passenger work. Hire and reward is a separate insurance class, and any claim made during a paid delivery on a business-use-only policy will be rejected. You’ll be treated as uninsured.
Make sure your policy specifically says hire and reward when you compare courier insurance quotes.
What does hire and reward insurance cover?
Hire and reward insurance covers your vehicle while you are transporting goods or passengers for payment, protecting you against third-party injury, property damage, and (depending on your cover level) damage to your own vehicle.
| Cover level | What is included |
| Third-party only (TPO) | Covers injury to others and damage to their property. Does not cover your own vehicle. The minimum legal requirement. |
| Third-party, fire and theft (TPFT) | Includes TPO plus cover if your vehicle is damaged by fire or stolen. |
| Comprehensive | Includes TPFT plus damage to your own vehicle, personal injury, and often legal expenses and breakdown cover. |
Public liability
Many hire and reward policies include or offer public liability cover, which protects you if a member of the public makes a claim against you for injury or damage caused during your work.
What it does not cover
Hire and reward insurance covers your vehicle and your liability, not the goods you carry. If you need to protect parcels or packages during transit, you need separate goods-in-transit cover.
Related: What Does Courier Insurance Cover?
Who needs hire and reward insurance?
Anyone who uses their vehicle to transport goods or passengers for payment needs hire and reward insurance, which is one component of courier insurance. Under the Road Traffic Act 1988, driving for hire and reward without the correct insurance class is a criminal offence.
Courier and parcel delivery drivers
If you deliver parcels for companies like Amazon, Evri, DPD, or Royal Mail, you need hire and reward cover, and most platforms verify your insurance during onboarding.
Related: What Insurance Do I Need to Be a Courier?
Food delivery drivers
Drivers working for Uber Eats, Deliveroo, and Just Eat need hire and reward insurance whether they use a car, van, motorbike, or scooter.
Related: Is It Worth Becoming a Self-Employed Courier?
Private hire and taxi drivers
Private hire drivers (Uber, Bolt) and licensed taxi drivers need hire and reward cover to transport passengers legally. Compare private hire insurance quotes to find the right policy for your vehicle and licence type.
Other commercial carriers
Furniture removal companies, haulage firms, vehicle transportation services, and any business that charges to move goods from one location to another all require hire and reward insurance.
Related: How Do You Become a Courier in the UK?
Penalties for driving without it
Driving without the correct insurance is an offence under UK law, with penalties including a fixed penalty of up to £300, six points on your licence, and potential seizure of your vehicle. See gov.uk for full details on vehicle insurance requirements.
What types of hire and reward policy are available?
There are three main policy types: pay-as-you-go, monthly, and annual, each suited to different working patterns and budgets.
Pay-as-you-go
Cover activates only when you are working, typically managed through an app where you pay per hour or per shift. This suits part-time drivers who mix delivery work with personal use.
Monthly
Short-term cover renewed each month, where you can choose hire and reward only or combine it with social, domestic, and pleasure (SD&P) cover. This suits seasonal workers or drivers testing courier work before committing to an annual policy.
Annual
The most cost-effective option for full-time drivers, as most annual policies include SD&P cover as standard. This suits anyone who transports goods or passengers regularly throughout the year.
How much does hire and reward insurance cost?
Hire and reward insurance costs more than standard car cover because it insures commercial driving activity. For detailed pricing, see our full guide to courier insurance costs.
| Policy type | Typical cost |
| Pay-as-you-go | Around £0.80 per hour |
| Monthly | £110 to £130 per month |
| Annual | Around £1,100 per year |
What affects the price
Insurers set premiums based on your age and driving experience, annual mileage, vehicle type and value, the goods you carry, your location, and your working hours.
Checking your provider
Before buying, verify your insurer is authorised by checking the FCA Financial Services Register. This confirms the provider is regulated and your policy will be legally valid.
Related: Top 5 UK Courier Insurance Providers
How is hire and reward different from business use insurance?
Business use insurance and hire and reward insurance are not the same, and confusing the two is one of the most common mistakes drivers make.
Business use (Class 1, 2, and 3)
Business use insurance covers driving to different work locations, client meetings, or between offices. It does not cover transporting goods or passengers for payment.
Hire and reward
Hire and reward is a separate insurance class for drivers who earn money by carrying goods or people, and even full business use cover will not cover courier or delivery work. For a detailed comparison, see our guide on how courier insurance differs from hire and reward.
Why it matters
If you have business use insurance but do courier work, any claim made during a delivery will be rejected and you would be treated as uninsured. See what happens if you are caught without courier insurance for the full consequences.
Frequently Asked Questions
It depends on the policy type. Most annual hire and reward policies include SD&P cover as standard, while monthly and pay-as-you-go policies typically cover hire and reward activity only.
They overlap heavily, as hire and reward is the insurance class while courier insurance is a product name used by providers. Both cover transporting goods for payment, but courier insurance may include additional features like goods-in-transit cover.
Some insurers allow you to add hire and reward as an upgrade to an existing policy, but most require a separate specialist policy. Check with your current insurer first.
Yes, food delivery for platforms like Uber Eats, Deliveroo, and Just Eat counts as hire and reward activity. Standard motor insurance will not cover you during deliveries.
Cars, vans, motorbikes, scooters, and mopeds can all be covered under hire and reward policies. Check that your specific vehicle type is accepted by the provider.
Use the courier insurance comparison tool to compare quotes from leading UK providers. Enter your vehicle details and working pattern to see prices side by side.
Hire and reward covers your vehicle and liability while driving for payment, whereas goods-in-transit insurance covers the parcels and products you carry against theft, loss, or damage. Most couriers need both.