Hire and Reward Insurance

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Why compare hire and reward insurance with MultiQuoteTime.co.uk?

If you are in the hire and reward 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 be time-consuming.

For most, it’s just a hassle—but an important task. Enter MultiQuoteTime, which has partnered with Quotezone to provide a streamlined online quote process. MultiQuoteTime.co.uk makes it easy to compare options, whether you deliver fast food part-time or work as a self-employed contractor delivering parcels for Amazon full-time.

What is UK Hire and Reward insurance?

Hire and reward insurance provides you with insurance required to provide a service using your van in return for a reward. The reward does not have to be money, for example it can be a benefit in kind.

For couriers, having the right type of hire and reward insurance for your car or van is essential to ensure you, your vehicle, and your business are properly protected. This style of insurance is used for those in the courier businesses where they are paid to take a package, food items or a person from one location to its destination.

Hire and reward insurance covers any service that a vehicle is used, resulting in a reward. If you ferry passengers for reward as an Uber driver, you will need Uber insurance, which is a form of private hire insurance. If you are or intend to use your car for such purpose, you will need a hire and reward car insurance policy.

Types of Hire and Reward insurance

Hire and reward insurance will normally fall into one of the following categories:

Private hire insurance / Uber drivers
Food delivery
Couriers

Is Hire & Reward Insurance a Legal Requirement in the United Kingdom?

Hire and reward insurance is a legal requirement if you are transporting goods or passengers for a reward, normally a payment. The panel of UK brokers can provide hire and reward insurance quotes for a wide range of vehicles and professions. We have listed a few examples of professions and vehicles below.

Haulers
Minicabs, Taxi Drivers and Chauffeurs
Couriers
Furniture Movers
Towing services

Why is Hire and Reward Van Insurance Expensive?

Hire and reward van insurance tends to be more expensive than standard car or van insurance. The key reason is that the use poses additional risk to the insurance company. Accidents are more likely given the nature of the job, constantly on the road working to a tight delivery schedule. Consider the following:

Some drivers are running against the clock and must make delivers regardless of prevailing weather conditions.
Food delivery drivers are constantly checking their app for directions, and often the direction take them down roads that are new to them.
Hire and reward drivers are on the road all day, making multiple stops.

All these factors lead to a higher risk profile in terms of insurance, which is reflected in a higher premium. Some brokers will not even offer cover to young and inexperienced drivers. In summary, deliver drivers need a specialist cover that recognises and takes into account that they are in a higher risk category than normal social or business drivers.

What is the Difference between Haulage and Courier Insurance?

If you are using your van to delivery goods, you will need van courier insurance. Haulage insurance is the traditional type of insurance that you would associate with larger trucks that move a shipment of goods from A to B. The destination is not always clear-cut, but the broker can advise based on the information that you provide.

Courier : Tailored to a delivery service with multiple drops during the working day.
Haulage : Aimed at larger HGV that make one or two deliveries over a larger distance. Live stock hauliers being a good example.

What Level of Cover is Available for Couriers?

For most couriers, this is a class 3 business policy. The levels of protection include the following;

Third Party Only is protection for the other person’s vehicles and their medical bills when you are at fault in an accident. This is the minimum level required by law. You, your vehicle, nor the goods you are transporting have any protection.
Third Party Fire and Theft is the same as third party, along with your vehicle being covered if it is damaged by a fire or is stolen.
Comprehensive covers both you and the third party involved in an accident. Both vehicles will be repaired and medical bills for both parties will be paid.

Types of Vehicle Insurance	Comprehensive	Third Party Only	Third Party plus Fire & Theft
Cover if your vehicle is damaged in an accident	✔	No	No
Cover for your vehicle if damaged in a fire or stolen	✔	No	✔
Compensation for passengers and others	✔	✔	✔
Cover for damage to the property of a third party	✔	✔	✔

Additional Coverage Options:

The above cover only addresses the road risk insurance element, but not the contents you are transporting. To cover the items or the people you are transporting, a carriage of goods for hire and reward policy is needed. The level of cover required is dependent on what is being transported and its value. For couriers transporting high end and valuable items, the cost of this insurance is higher than food delivery drivers because the replacement cost will be higher.

Public liability is another add-on that is advisable, especially for the private hire courier. This is protection if a third party makes a claim of being injured or their property damaged due to your services. This coverage handles the court fees, legal fees and any settlement in the case.

How To Get Cheaper Hire And Reward Insurance

Be Proactive

Consider taking action to find cheaper Hire & Reward insurance.

Reducing the policy premium is possible if you can reduce the risk that you pose to the broker. We have listed some areas that action can be taken to get a cheaper hire and reward insurance quote.

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Van Security: Are you able to provide secure parking when not in use? If you can provide off-street parking, preferably in a locked and secure building or garage, this will reduce risk and lower the final cost.

Van Size: Keep the size of your vehicle to a minimum and, if possible, use one with a small displacement engine, which helps to reduce the risk the vehicles pose. Larger vans with larger engines pose a higher risk to the insurance company, raising the cost of the premium.

Paying your premium on an annual basis will also add additional savings.

Excess: The excess is the amount you would be liable for in a claim against you. All policies come with an excess, similar to when you rent a van, you will have local excess. By speaking with your broker, it is possible to increase your excess liability in return for a lower premium.

Clean Licence: With speed cameras everywhere, you need to be a good, law-abiding driver to avoid points on your licence. If you drive within speed limits and avoid driving convictions, you will be rewarded with cheaper insurance than car insurance with points on your licence.

PAYG: If you only work a few hours per week as a courier, a pay-as-you-go delivery policy should work out cheaper than an annual policy.

Flood Damage: This is normally standard, but only if your caravan is situated in a flood free zone, if not you can often pay extra to get specific flood cover.

How much does hire and reward insurance cost?

The cost of hire and reward insurance in the United Kingdom will be based on a number of factors that will vary for each individual or business, as such it is difficult to give an exact figure, but expect to pay more than you would for business use car or van insurance to cover additional risk.

The key factors that go towards calculating the insurance costs include the type of vehicle and insurance bracket. What goods are being couriered in terms of increased risk to the insurance company. The driver’s experience and claims history will also play an important factor in arriving a t a final premium costs. The type of cover will also impact the costs, traditional full comprehensive cover is the most expensive, but third party cover prices have been increasing as insurance companies are finding the number of claims was proportionally higher with this lower level of cover

Get hire and reward insurance tailored to your UK business requirements

A courier driver insurance policy or any hire for reward policy should be tailored to your specific needs. By completing one simple form provided by Quote Zone you will receive multiple quotes from a panel of UK specialist insurance providers. These quotes can be tailored to fit your exact requirements within your service sector.

Delivery Driver Market Statistics
Top Companies Hiring	Start Your New Career, Just Eat and Yodel / Home Delivery Network
Average Delivery Driver Salary	£25,266
Current vacancies	26,964

Data from Adzuna

Helpful Links

BIB: The British Insurance Brokers’ Association is the UK’s leading general insurance intermediary organisation

How to compare hire and reward insurance quotes at MultiQuoteTime.co.uk

Complete the Form: details about you and the vehicle to be insured

Choose the level of cover: You can also add extras at this stage, such as public liability insurance.

Check prices: you could save £££’s

Get Multiple Quotes

Hire and Reward Insurance Frequently asked questions

Does a Vehicle Rental Business Need Hire and Reward insurance?

The growth in the staycation industry has created a new demand for self hire vehicles in campervan sector and car rental sectors. For those that are staring out as a new venture, hiring out any type of vehicle you will need a specific type of cover referred to as self drive hire insurance or pay as you go self drive hire insurance

Who Needs Hire and Reward insurance?

This type of cover is required for those who deliver packages, food items, private hire drivers, public taxi drivers, long-haulers, ride-share drivers, and furniture removal drivers. These are just some examples of the business categories where this type of cover is required to operate legally.

Do food delivery drivers need a hire and reward insurance Cover?

Most food delivery drivers will need to take out hire and reward insurance. In some cases, the restaurant or café may provide you with a delivery vehicle that is covered for food delivery. In most cases you will be using your own mode of transport car, van or bike and your standard vehicle insurance policy will not provide cover for food delivery. You can opt for an annual policy or a monthly hire and reward policy. If you only work occasionally, or it is a part-time gig, look at a pay as you go food policy.

If you only work occasionally, or it is a part-time gig, consider a pay as you go food insurance policy.

Do I need fast food delivery insurance?

Yes, if you deliver food, you will need specialised fast food deliver y insurance. If your vehicle is involved in an accident whilst you are providing a delivery service, the claim will be rejected by the insurance company if you do not have the correct level of insurance. In monetary terms, this means that you be responsible for all the associated costs of the accident. In addition, from a legal perspective you will be driving without insurance, which can lead to a driving conviction.

** If you are hired as a delivery driver and use your own vehicle, you need to contact your insurance agent and add food delivery insurance to your existing policy.
** Some employers do provide hire and reward coverage for their drivers. Before being hired, check if your new employer will cover your vehicle while you are working for them.

What van types are covered with a hire and reward policy?

Quotes are available for all van categories, we have listed these below. If your van has been modified, this may impact the quote, and you must notify the broker during the quote process. Failure to notify the broker of any modifications can invalidate your cover. A good example of a typical van modification is the addition of a lifting ramp.

Pickup Truck – Rear can be open or closed, for personal or business pickup up insurance.

Micro Van : These are popular with delivery drivers, the rear can be raised.

Panel Sides Medium: These are based on standard cars, but with the rear enclosed and with a raised roof

Box / Large: This is the traditional workman van with a rear without windows and is popular with tradesmen or a large delivery business

If I work for Uber do I need Hire & Reward insurance?

Yes, if you work for Uber, you need Hire & Reward insurance. Uber drivers fall under the category of private hire drivers, who differ from taxi drivers as they cannot be hailed on the street and must be pre-booked.

Uber drivers require a Hire & Reward policy tailored to their specific needs. For more details, check out our comprehensive guide on taxi insurance for Uber drivers.

How much is hire and reward van insurance?

The cost of Hire & Reward van insurance depends on several factors. Some of the more important factors are your driving history, value of van, value of cargo. The van insurance is available at three levels, but you need that additional courier cover if you are using your van for hire and reward.

Is hire and reward insurance for young drivers available?

Yes, young driver Hire & Reward insurance is available. The demand for this type of insurance spans all age groups, from young drivers under 25—and in some cases under 21—to drivers over 50 and beyond.

Comparative insurance quotes are available for cars, vans, and motorbikes across all age ranges. While some brokers may have minimum requirements, it is still possible to find Hire & Reward insurance for young drivers, whether for a van or a car.

If I just carry tools and goods for my trade, do I need to take out hire and reward van insurance?

If you are only carrying tools or equipment, you are unlikely to need Hire & Reward insurance. However, it’s important to check with your insurance provider to confirm whether your policy covers your tools and equipment.

This applies to many tradespeople, such as builders, electricians, and carpet fitters. In these cases, you will typically need business vehicle insurance along with coverage for your trade tools and equipment to ensure full protection.

Updated: 17 March 2025
Reviewed by Eamonn Turley Insurance Expert