Pay As You Go Food Delivery Insurance
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Why compare pay as you go food delivery insurance with MultiQuoteTime.co.uk?
If you are in the delivery sector, either as a part-time gig or full-time, finding suitable insurance can be a chore, and finding a policy to suit your unique requirements can take time.
For most, it is just a hassle, but at the same time, it is important that you do the research to find a good deal and save some money. Enter MultiQuoteTime who have partnered with Quotezone to give you access to a streamline online quote process. MultiQuoetTime.co.uk makes it easy for you to compare fast food delivery insurance from trusted UK insurers—all in one place.
What is pay-as-you-go delivery insurance (PAYG)?
This type of cover is a form of hire and reward insurance and provides you with the necessary legal cover for you to work as a delivery driver. The PAYG Delivery Insurance is only activated when you are working and making delivers.
The amount you pay for cover is simply but based on usage. The more you use, the more you pay and vice versa. This makes it a good fit for those that work on a part-time or seasonal basis to supplement their income.
If you are using your private vehicle, car, van or bike to provide a delivery service you need a special type of cover often referred to as pay as you go food delivery insurance. The pay as you go or use model (PAYG) is relatively new to the UK insurance marketplace. First introduced in 2013 under the Cuvva brand. In basic terms, it allows customers to buy pay-as-you-go insurance via an app.
The pay as you use approach provides a form of temporary insurance that covers you for providing a delivery service. This disruptive technology is popular in all sectors of the UK insurance market. PAYG courier insurance is an offshoot and is perfect for fast food delivery drivers that operate for the local takeaway or via Deliveroo. ZEGO insurance was one of the first to provide this insurance model for delivery drivers and couriers.
The pay as you go fast food delivery insurance is in addition to your social, domestic and pleasure vehicle insurance you took out to register your vehicle which can be third party, third party fire and theft or comprehensive. This extra type of coverage can be added to anyone of those.
Pay as you go delivery insurance is the ideal coverage for part-time delivery drivers who work less than 20 hours a week or on a seasonal basis.
How does pay-as-you-go food delivery insurance work?
The process is simple. If you are not an existing customer, you must first create a central insurance management account with an insurance agent that offers PAYG cover. The deposit you place with them for this coverage can be as low as £25. Upon picking up a package to be delivered, you activate your coverage using your firm reference number. When you are done making the delivery, you deactivate the coverage. If you provide a delivery service by bike or scooter, you can also apply for PAYG bike insurance.
The activation is accomplished with a black box mounted to your vehicle that tracks your activity.
Choose from two Pay-as-you-go insurance models.
Pay per use model has gained popularity in the food delivery sector and also the car rental industry. Rental car companies need only activate the insurance when they actually rent out the vehicle.
In summary, the pay-as-you-go (PAYG) model is normally available on a pay-per-mile or pay-per-time basis. This payment on actual usage will be in addition to a flat rate that you pay even if you were never to use your car. It still works out cheaper if you do less than 6,000 miles per year or, as in the case of the delivery sector, you need extra cover on top of your existing car insurance policy.
What data does the black box track when activated?
The black box is a telemetric device that records how the person drivers. It is able to record your location, speed of travel, how you drive smooth or always braking and accelerating to give you an overall score.
The number of hours you are working can be tracked through your insurance company’s website. Some insurance companies have an app that provides you with the details that you need, like hours making deliveries. If you need fast food delivery insurance, it may be prudent to look at pay as you go insurance options.
What are the benefits of PAYG fast food delivery insurance
The key benefit is that you will only pay when you are working as a delivery driver, making it perfect for part-time or those of us that work during peaks season to supplement income
How much does pay-as-you-go delivery insurance cost?
Because this is a short term coverage, most insurance companies charge by the hour or the miles you travel. The type and size of vehicle and your driving history and your age will all play important factors into the cost of pay as you go food delivery insurance per hour or mile.
The list below is a rough guide to the cost of common delivery vehicles rated by the hour, covering the average named driver. For drivers under the age of 25, the cost will be more.
| Vehicle Type | Cost per hour |
|---|---|
| Scooter | £0.55 |
| Motorcycles | £0.75 |
| A small economical car | £0.80 |
| Large car with bigger the engine displacement | Range £0.80 – £3.00 |
| Small Van | £1.00 |
| Larger Van | Maximum of £3.00 per hour for larger vans |
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MultieQuoteTime Shares Tips on getting affordable PAYG food delivery insurance in 2025
Getting the best deal on any insurance policy depends on the level of risk you pose. Some factors, such as the property’s postcode, are fixed. However, you do have control over others. Below, we have listed some of the key factors to consider.
Limit deliveries
Limited Deliveries: Plan deliveries to reduce mileage and potential risk, which can help lower insurance costs.
Don’t over-insure
Don’t over-insure: Only add additional add-ons that you will benefit from. For example, do you need personal belongings cover if you’re driving a scooter, or have you made the decision not to carry valuables in your work vehicle?
Pay Annually
Monthly payments are convenient, but they often work out more expensive due to additional processing fees. If possible, paying annually can help reduce the overall cost.
Get Mutiple Quotes
Compare Multiple Quotes: Explore and compare PAYG insurance options from different providers. The comparison tool that MultiQuoteTime provides access to makes this simple.
Accept a higher excess
you are a safe driver and are happy to voluntarily increase the excess, this normally results in lowering your premium. You will need to have access to this amount should a claim arise, so plan accordingly, possibly hold it in a quick-access account to earn some interest.
Reduce risk of theft
Take steps to increase the vehicle security by providing safe parking and adding theft deterrents.
PAYG – Pay as you go UK delivery Insurance FAQ’s
- Updated: 08 March 2025
- Reviewed by Eamonn Turley Insurance Expert