Hire and Reward Insurance: What Every Courier Needs to Know
Key Takeaways
- →Hire and reward (H&R) is the legal use class that must appear on any vehicle insurance policy used to carry other people’s goods for payment. Under the Road Traffic Act 1988, driving without it while delivering is the same in law as driving with no insurance at all.
- →Standard business car insurance at Class 1, 2 or 3 level does not include hire and reward. Even a fully comprehensive business policy explicitly excludes the carriage of goods for third parties for payment unless H&R is declared.
- →Platform insurance (Amazon Flex, Deliveroo, Uber Eats) covers third-party liability during active orders only. It does not cover your vehicle, your personal injury, the goods in transit, or any time logged in between orders. Your personal policy must cover these gaps.
- →There are two distinct sub-types of H&R for couriers: parcel/multi-drop (short journeys, multiple stops, typically lower risk) and hot food delivery (evening/weekend peaks, time pressure, higher risk profile). You must declare the correct type or a claim can be refused.
- →Annual H&R policies for vans start from around £1,450 per year for comprehensive cover. PAYG H&R starts from roughly £1.20 per active hour and becomes more expensive than annual cover above approximately 20 hours of delivery work per week.
- →H&R cover for the vehicle is the mandatory legal layer. Goods in transit (from £5,000 load minimum on most platforms) and public liability (from £56 per year for £1m cover) are separate add-ons required by platforms and commercial contracts respectively.
The most searched question about courier insurance is also the most dangerous one to get wrong. Drivers working for Amazon Flex, Deliveroo, Evri and every other platform are routinely told their standard car or van insurance “should be fine” or that the platform “covers them.” Both assumptions are wrong. The legal mechanism that catches both out is hire and reward: the specific use class that must appear on your policy the moment you carry goods for payment, and the one that every standard personal or business policy deliberately excludes.
This guide explains exactly what hire and reward insurance is, why standard motor insurance cannot cover it, what the five insurance use classes mean, how platform cover works and where it stops, what a proper H&R policy covers in practice, and how to choose between PAYG and annual cover for your working pattern. For quotes from specialist UK brokers, visit our courier insurance quote page or our courier insurance comparison page.
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💬 From the MMC Courier Team
“Every week we speak to couriers who have been driving for months on the wrong policy. The most common version: someone working evening Deliveroo shifts on a Class 1 business insurance policy, assuming it covers commercial deliveries. It does not. Class 1 covers driving between your home and a client’s premises for your own business. It explicitly excludes carrying other people’s goods for payment. If that driver had a crash on a Friday evening, their insurer would void the policy and leave them personally liable. The fix is a simple H&R declaration, but it has to be on the policy before the first delivery, not after the accident.”
MMC Courier Specialists, FCA-authorised (reg. 916241)
Road Traffic Act 1988: Section 143
Section 143 of the Road Traffic Act 1988 requires every motor vehicle used on a public road to be covered by a policy of insurance that is valid for its actual use. Hire and reward use is a distinct and separately underwritten use class. Using a vehicle for H&R without that use class declared on the policy means the policy does not cover that use, and the driver is uninsured. The penalty under Section 165 includes 6 to 8 penalty points, an unlimited fine, vehicle seizure, and potential prosecution for driving without insurance.
What Is Hire and Reward Insurance?
Hire and reward insurance is a motor insurance policy that includes the hire and reward use class: the legal classification that applies whenever a vehicle is used to carry goods belonging to other people in exchange for payment. Without this use class declared on the policy, the insurance is not valid for delivery work, regardless of the policy level or any other use class that is included.
The term “hire and reward” comes from the legal language of the Road Traffic Act 1988. “Hire” refers to the vehicle being used for commercial purposes. “Reward” means payment is received for that use. Both conditions are met the moment a driver accepts payment for any delivery, whether a parcel, a meal, or any other goods. Employment status is irrelevant to the legal requirement. A self-employed Amazon Flex contractor, an employed DPD franchise driver, and a part-time Deliveroo rider all need H&R cover while on shift.
The Five Motor Insurance Use Classes Explained
Every motor insurance policy is written against a declared use class. Understanding where H&R sits in this system explains exactly why standard policies fail for courier work.
| Use Class | What It Covers | Valid for Courier Work? |
|---|---|---|
| SDP (Social, Domestic & Pleasure) | Personal driving, shopping, leisure, visiting friends. No commercial use whatsoever. | No |
| SDP + Commuting | All SDP uses plus driving to a single fixed place of work. Most standard car policies. | No |
| Class 1 Business | Business travel between multiple sites for your own trade. Carrying your own tools or samples. No carriage of others’ goods for payment. | No |
| Class 2 / Class 3 Business | Higher mileage commercial use, named driver extensions, company car use. Still explicitly excludes H&R delivery work. | No |
| Hire and Reward (H&R) | Carriage of other people’s goods for payment. Multi-drop parcel delivery, food delivery, urgent courier runs. The only valid use class for paid delivery work. | Yes |
The distinction matters because insurers price each use class separately. H&R carries higher risk ratings than standard business use due to higher annual mileage, multi-stop operations, loading/unloading exposure, and time-pressured driving. Declaring a lower use class and then using the vehicle for H&R work is a material non-disclosure. It does not just void the delivery-period claim. It can void the entire policy, meaning even a personal-use accident before or after a shift could be refused. For a full overview of what courier insurance covers across all three layers, see our courier insurance complete guide.
Why Standard Car and Van Insurance Is Void for Delivery Work
Standard car and van insurance policies contain an explicit exclusion for hire and reward use. This exclusion is not buried in the small print. It is a core coverage limitation that defines the scope of the policy. When a claim is made, the insurer checks the declared use class against the circumstances of the incident. If you were making a paid delivery at the time, the claim is outside the policy scope and will be refused.
Here is what that means in practice. A driver with a comprehensive personal car policy picks up a Deliveroo order and has a collision 10 minutes later. Their insurer will ask what they were doing. “Delivering food for payment” triggers the H&R exclusion. The policy pays nothing for vehicle damage, nothing for third-party claims (leaving the driver personally liable), and the policy itself may be voided for non-disclosure. The driver then faces a claim on their own personal finances, potential prosecution for driving without insurance, and the near-certainty of much higher insurance costs for the next 5 years due to the policy cancellation.
⚠️ What “Business Use” on Your Existing Policy Does Not Cover
Many drivers see “business use” on their policy and assume it covers delivery work. It does not. Business use on a standard car policy covers you using your own vehicle to travel between your own company’s sites or to visit your own clients. It covers your own business activities in your own vehicle. It does not cover carrying other people’s goods for payment. The legal test is simple: whose goods are in the vehicle, and are you being paid to carry them? If the answer is “someone else’s goods” and “yes, paid,” you need H&R cover specifically.
This catches a specific group of drivers hard: tradespeople who do occasional delivery work on the side. A sole trader carrying their own tools is fine on Class 1. The moment they accept payment to deliver a customer’s goods in the same van, they need H&R on that policy too.
How Platform Insurance Works (and Where It Stops)
Amazon Flex, Deliveroo, Uber Eats, Just Eat, Evri, and most delivery platforms provide a form of insurance during active delivery sessions. In every case, this covers third-party liability only, during the active order period only. It is not a substitute for your own policy and never was intended to be.
| Platform | What Platform Cover Provides | What It Does Not Cover | Your Policy Must Cover |
|---|---|---|---|
| Amazon Flex | Third-party liability during active block. Contingent cover only: activates if your own policy refuses first. | Your vehicle damage. Your personal injury. GIT. Between-order gaps. | H&R vehicle cover. GIT min £5,000. Personal accident optional. |
| Deliveroo | Third-party liability when actively on a delivery. Personal injury cover for riders (not vehicle damage). | Your vehicle. Goods in transit. Log-in between orders. Personal car policy. | H&R vehicle cover for car/moped. SDP cover for personal driving. |
| Uber Eats | Third-party liability during active trip only. No cover between trips even while logged in. | Vehicle damage. Your personal injury (vehicle). GIT. Log-in period. | Full H&R vehicle policy. Your own SDP and commuting cover separate. |
| Evri | No platform-provided vehicle insurance. Evri is a contracting relationship, not employment. | Everything. Evri provides no vehicle cover to self-employed contractors. | Full H&R courier policy plus GIT min £5,000. Your responsibility entirely. |
| DPD (owner-driver) | No platform vehicle cover. DPD franchise agreement requires minimum insurance levels as a condition of contract. | Everything. Owner-driver is responsible for their own full policy. | H&R van policy plus GIT £5,000+, PL £1m minimum per DPD franchise terms. |
The critical point on platform cover is the between-orders gap. A Deliveroo rider logged into the app waiting for the next order is not on an active delivery. Platform cover does not apply. Their standard personal policy does not apply either because the vehicle is being used commercially. In that waiting period, the rider is uninsured unless they hold their own H&R policy covering the full shift. A single H&R annual or PAYG policy that covers from the moment they start work to the moment they clock off is the only complete solution.
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Annual or PAYG hire and reward cover for cars, vans and motorcycles.
FCA-authorised comparison. Reg. 916241.
Parcel Delivery vs Hot Food Delivery: Why the Distinction Matters for H&R Cover
Hire and reward insurance splits into two distinct risk categories for couriers: multi-drop parcel delivery and hot food delivery. Insurers underwrite them differently, price them differently, and some policies only cover one. Declaring the wrong type is a material non-disclosure that voids a claim.
Multi-drop parcel delivery covers the classic courier model: running 80 to 200 stops per day in a van or car, delivering parcels for platforms like Amazon Flex, Evri, DPD, Yodel, or your own round. The risk profile includes high annual mileage (often 50,000 to 80,000 miles per year), urban route concentration, regular loading and unloading, and commercial operating hours. It is the basis of most annual courier van insurance and car courier insurance policies.
Hot food delivery covers delivering meals for Deliveroo, Uber Eats, Just Eat, and similar platforms. Insurers rate this separately because the risk profile differs: deliveries are concentrated in evening and weekend peak hours, time pressure from perishable goods increases the risk of hurried driving, and the moped and motorcycle courier insurance vehicle mix has a different accident frequency than vans. A courier working both parcels during the day and food deliveries in the evening needs a policy that explicitly covers both, or two separate policies.
What a Full H&R Courier Policy Covers
-
H&R vehicle cover (mandatory layer): Third-party liability, fire and theft (TPFT), or fully comprehensive cover for the vehicle. Activates for the full shift period including between-order gaps, commute to starting point, and transit home. This is the legal requirement. -
Goods in transit (platform requirement): Covers parcels and goods in the vehicle against loss, theft, or damage. Not included in base H&R vehicle cover. Add-on required. Most platforms set a minimum of £5,000 per load. Standard per-item limits of £100 to £500 per parcel apply on most policies. -
Public liability (commercial contract requirement): Covers the courier against third-party claims for injury or property damage during the course of work. Not legally mandatory but required for NHS, local authority, and most commercial contracts. Cover starts at £1m from around £57 per year. See our public liability guide. -
Optional add-ons: Breakdown cover (critical for full-time couriers), legal expenses, personal accident, windscreen, and employers’ liability (legally required if you engage any other drivers). Multi-vehicle courier operations should consider fleet cover. See our courier fleet insurance guide.
PAYG vs Annual H&R Insurance: Which Is Right for You?
The hire and reward market offers two distinct purchasing models: pay-as-you-go (PAYG) cover activated per hour or shift, and annual policies covering all working periods under one contract. The right choice depends entirely on how many hours per week you deliver. Below roughly 20 hours per week, PAYG is almost always cheaper. Above that, annual wins.
PAYG H&R Insurance: How It Works in Practice
PAYG hire and reward insurance, offered by providers such as Zego and Veygo, allows drivers to switch on H&R cover via a smartphone app for specific shift periods. The cover costs roughly £1.20 to £2.00 per active hour depending on vehicle type and risk profile. It sits on top of a separate personal SDP policy for non-working periods. The driver only pays for insured hours.
PAYG policies typically include H&R vehicle cover and may include third-party liability during active periods. Goods in transit and public liability are usually separate add-ons and must be checked against platform requirements individually. PAYG does not automatically cover both parcel and food delivery; the policy type must match your work type.
H&R Policy Structure by Courier Profile
| Courier Profile | Delivery Hours/Week | Recommended H&R Model | Approx Cost | Key Requirement |
|---|---|---|---|---|
| Amazon Flex, own Toyota Yaris, 2 x 4hr weekend blocks | 8 hrs | PAYG per block | ~£10 to £16/week | GIT min £5,000 checked against Amazon requirements |
| Deliveroo moped, Manchester, 3 evenings/week | 12 to 15 hrs | PAYG or short-term annual (borderline) | £14 to £30/week PAYG | Hot food delivery class declared, not parcel delivery |
| Self-employed Evri van, Leeds to Bradford, full-time | 45 to 50 hrs | Annual comprehensive van courier | £1,450 to £1,900/yr | GIT £5,000 required by Evri, high mileage declared accurately |
| DPD owner-driver franchise, own Transit | 50+ hrs | Annual comprehensive, must meet DPD franchise minimums | £1,600 to £2,100/yr | GIT £5,000+, PL £1m minimum per franchise agreement terms |
| Multi-platform rider: Deliveroo + Uber Eats + Just Eat | 30+ hrs | Annual H&R motorcycle policy covering all platforms | £700 to £1,200/yr | All three platforms explicitly declared on the policy |
| Small courier business, 5 Transit Connects | Fleet operation | Courier fleet policy with H&R any-driver | £900 to £1,500/vehicle/yr | GIT per load, EL required by law for employed drivers |
Cost estimates are indicative figures based on typical courier profiles in 2025 and are provided for comparison purposes only. Your actual premium will depend on your vehicle, driving history, annual mileage, operating area, goods carried, and the specific terms of the insurer. Always obtain a personalised quote from an FCA-authorised broker before making any insurance decision.
Quick Facts: Hire and Reward Insurance UK
Legal basis
Road Traffic Act 1988, Section 143. H&R use class required for any vehicle carrying others’ goods for payment on UK public roads.
PAYG break-even
Approx 20 hours per week active delivery. Below: PAYG cheaper. Above: annual policy saves money.
Platform cover gap
Platform insurance covers third-party only during active orders. Between orders and vehicle damage: not covered by platform.
Two H&R sub-types
Parcel/multi-drop (Amazon Flex, Evri, DPD) and hot food delivery (Deliveroo, Uber Eats). Separate risk ratings. Must be correctly declared.
NCD portability
Courier NCD is policy-specific and not transferable from a personal SDP policy. Get written NCD confirmation at every renewal before switching insurer.
Operator licence
Vehicles over 3.5t GVM also need an operator’s licence under the Goods Vehicles (Licensing of Operators) Act 1995. Separate from insurance.
How to Get the Right H&R Courier Policy: Five Things to Check
The cheapest courier policy is not the right courier policy. Five specific checks separate adequate cover from a policy that pays at the moment you need it.
✅ Five Policy Checks Before You Buy
1. H&R use class is explicitly stated
The words “hire and reward” or “carriage of goods for hire and reward” must appear in your policy schedule. “Business use” alone is not enough.
2. Delivery type matches your work
Parcel delivery and hot food delivery are different risk categories. Your policy must state the correct type. Multi-platform workers need both declared.
3. Mileage is accurately declared
A full-time Evri courier does 60,000 to 80,000 miles per year. Under-declaring mileage saves premium but voids a claim. Declare actual expected annual mileage.
4. GIT limit covers actual load value
Platform minimum is £5,000 but electronics or pharmaceutical loads can exceed this. Check per-item limit: standard policies cap at £100 to £500 per parcel.
5. Between-order periods are covered
Confirm with your broker that the H&R cover applies during the full shift period, not only during active deliveries. This is especially important for PAYG policies.
Most mainstream comparison websites do not handle H&R policies accurately because standard aggregator questions do not include the hire and reward use class as a selectable option. Specialist courier insurance brokers understand the use class, the sub-types, and the platform requirements. Whether you need delivery driver insurance or self-employed courier insurance, the Association of British Insurers provides guidance for commercial vehicle policyholders on what to check at renewal. For a buyer’s checklist specific to courier policies, see our courier insurance buyer’s guide.
Frequently Asked Questions
Hire and Reward Courier Insurance
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