Hire and Reward Insurance: What Couriers Need to Know
Last fact-checked: March 2026
Definition: Hire and Reward (H&R) Insurance
Hire and Reward (H&R) insurance is a legal requirement for anyone transporting goods, parcels, or passengers in exchange for payment. It is a specific class of commercial motor use that sits above standard Social, Domestic and Pleasure (SD&P) and Business Use policies.
Standard car or van insurance, including business use, does not cover paid delivery work under any circumstances. Driving for reward without the correct H&R class of insurance is a criminal offence under the Road Traffic Act 1988 and grounds for your insurer to void any claim arising during a delivery.
⚡ Quick Facts: Hire and Reward Insurance for Couriers
- ✓Your standard car or van insurance is void the moment you accept a paid delivery. Social, domestic and pleasure cover (and even business use cover) does not extend to carrying goods for hire and reward. You need a specific H&R policy or endorsement in place before your first delivery.
- ✓Gig economy platform insurance does not fully cover you. Uber Eats, Just Eat, Deliveroo, Amazon Flex and Evri provide limited third-party cover while you are actively on a delivery, but this cover is minimal, often third-party only, and does not cover your vehicle, your income, or goods in transit. You remain responsible for arranging your own H&R policy.
- ✓H&R insurance and goods in transit insurance are two separate products. Hire and reward covers your vehicle and your liability on the road. It does not cover the value of goods you are carrying if they are lost, damaged or stolen. Goods in transit (GiT) insurance is a separate policy that covers that risk.
- ✓Pay-as-you-go H&R insurance exists and suits part-time couriers. If you only courier occasionally alongside another job, hourly or daily H&R cover can be more cost-effective than an annual policy. Several UK insurers offer app-based policies that activate when you start a shift and deactivate when you finish.
Key Takeaways
- →Hire and reward insurance is not optional. Under the Road Traffic Act 1988, any vehicle used to carry goods or passengers for payment must be covered by a policy that includes hire and reward use. There is no grace period and no exemption for occasional, part-time, or gig economy work.
- →The road use classification system has four levels: social, domestic and pleasure (SD&P); business use; carriage of own goods; and hire and reward (also called carriage for reward). Only the hire and reward class covers paid courier and delivery work. Being insured for business use does not cover courier deliveries.
- →Most courier contracts with platforms such as Evri, DPD, Yodel, and Amazon Flex require you to confirm you hold valid H&R insurance before you can register as a driver. Operating without it is a breach of your courier contract as well as a legal offence.
- →A complete courier insurance package typically combines three elements: hire and reward (vehicle and road liability), goods in transit (the items being carried), and public liability (injury or damage to third parties not arising from road use). All three are available as a bundled courier policy from specialist insurers.
- →Annual H&R premiums for a courier van driver typically range from £1,200 to £3,000+ depending on age, vehicle, location, claims history, and mileage. Car couriers and food delivery riders typically pay less. Pay-as-you-go options can reduce costs significantly for part-time drivers.
If you deliver parcels, food, or any other goods in exchange for payment, whether you work full-time for a courier company, drive for a platform like Amazon Flex or Evri, or take occasional food delivery shifts on Uber Eats, you need hire and reward insurance. Not business use. Not carriage of own goods. Hire and reward.
This guide explains exactly what hire and reward insurance is, why standard cover does not apply, what a complete courier insurance package should include, how platform cover gaps leave you exposed, and how to choose the right policy for how you work. To compare H&R quotes directly, visit our hire and reward insurance comparison page or our dedicated courier insurance page.
Quick Answer: What Does a Courier Need to Know About H&R Insurance?
Five things every courier must understand before their first delivery:
- 1Your existing insurance does not cover paid deliveries. Standard car or van insurance (including business use) does not extend to hire and reward work. You need H&R cover in place before accepting your first paid job.
- 2Platform cover is not enough. Gig economy platforms provide limited third-party cover during active deliveries. It does not cover your vehicle, your income, or the goods you carry.
- 3H&R does not cover the goods themselves. You need separate goods in transit (GiT) insurance to cover items lost, damaged, or stolen while in your vehicle.
- 4Part-time couriers can use pay-as-you-go cover. Hourly or daily H&R policies are available and can be significantly cheaper than an annual policy if you only courier a few days per week.
- 5Operating without H&R cover is a criminal offence. Under the Road Traffic Act 1988, you risk prosecution, an uninsured driving conviction (typically 6 to 8 penalty points plus a fine), and any claim from an incident during a delivery being voided entirely.
💬 From the MMC Courier Insurance Team
“The most common mistake we see is a driver who has added business use to their standard policy and assumes that covers courier work. It does not. Business use covers driving to meetings or between work sites. It does not cover carriage of goods for payment. The second most common mistake is assuming the platform’s insurance covers everything. It covers almost nothing beyond basic third-party road liability while you are on an active job. Your vehicle, your income, and anything you are carrying are your responsibility.”
MMC Courier Insurance Specialists, FCA-authorised (reg. 916241)
What Is Hire and Reward Insurance and Who Needs It?
Hire and reward insurance is the class of motor insurance required whenever a vehicle is used to carry goods or passengers in exchange for payment. Anyone earning money from delivering parcels, food, documents, or any other items must hold H&R cover, regardless of whether they work full-time, part-time, or only occasionally.
The Road Traffic Act 1988 sets out the legal requirement for insurance based on the use of the vehicle. The four use classes are as follows:
| Use Class | What It Covers | Does It Cover Courier Deliveries? |
|---|---|---|
| Social, Domestic and Pleasure (SD&P) | Personal driving: shopping, visiting friends, leisure trips | No |
| Business Use | Driving between work sites, visiting clients, commuting. Does not include carrying goods for a third party. | No |
| Carriage of Own Goods | Carrying tools, equipment, or materials that belong to you as part of your trade (e.g. a plumber carrying their own tools) | No, does not cover goods owned by a third party |
| Hire and Reward (Carriage for Reward) | Carrying goods or passengers belonging to or travelling with third parties, in exchange for payment. Covers multi-drop courier work, food delivery, parcel delivery, and all paid transport of goods. | Yes, required |
If you are unsure whether your work counts as hire and reward, apply this test: are you being paid to carry something that belongs to someone else, or to transport a passenger? If yes, you need H&R cover. The amount you earn, the frequency of work, or the platform you work through does not change this legal obligation.
What Are the Three Types of Hire and Reward Use for Couriers?
Within hire and reward, underwriters and insurers recognise three distinct courier sub-categories. Declaring the correct sub-type matters because each carries a different risk profile and premium. Describing your work incorrectly at inception is a material misrepresentation that can void your policy.
| H&R Sub-Type | What It Covers | Typical Platforms / Employers | Risk Profile |
|---|---|---|---|
| Carriage of Goods for Hire and Reward (General Courier) | Multi-drop parcel and package delivery. Multiple collections and deliveries per shift within a defined area. The most common courier use type. | Evri, DPD, Yodel, DHL self-employed, Amazon Flex, Royal Mail contractors | Moderate to high, high daily mileage, frequent stops |
| Haulage (Long-Distance Single Drop) | Long-distance delivery of a single load between two points, typically in a larger van or HGV. Fewer stops but higher per-journey mileage. | Pallet networks, logistics sub-contractors, owner-driver hauliers | Moderate, longer journeys, fatigue risk |
| Fast Food Delivery (Food Courier) | Delivery of hot food and drink to customers, typically over short urban distances. Treated as a distinct risk category by most UK insurers due to time pressure and urban driving patterns. | Uber Eats, Just Eat, Deliveroo, Domino’s, local restaurants and takeaways | High, urban stop-start, time pressure, high claim frequency |
⚠️ Haulage vs Courier: Why the Distinction Matters
If you describe your work as courier work but your insurer classifies it as haulage (or vice versa), any claim can be challenged on the grounds of material misrepresentation. Multi-drop local delivery is courier work. A single 200-mile run delivering a pallet is haulage. If your work sits across both types, tell your insurer and ensure your policy wording covers both explicitly.
What Does Hire and Reward Insurance Actually Cover?
Hire and reward insurance covers your vehicle and your legal liability on the road during paid delivery work. It does not cover the goods you are carrying, injury claims arising from non-road incidents, or your income if you cannot work. Those risks require separate policies.
| Cover Element | Included in H&R Policy? | Notes |
|---|---|---|
| Third-party liability (road) | Yes, all H&R policies | Legal minimum. Covers damage or injury you cause to other road users during a delivery. |
| Fire and theft | Third party, fire and theft and above | Your vehicle is covered if stolen or destroyed by fire. Not included in third-party only policies. |
| Accidental damage to your own vehicle | Comprehensive policies only | Covers repairs to your vehicle following a collision, regardless of fault. Most courier-focused policies are comprehensive. |
| Windscreen cover | Comprehensive, often optional | Couriers accumulate significantly higher mileage than private drivers. Windscreen cover is worth including given the frequency of chips and cracks. |
| Breakdown cover | Optional add-on | Essential for couriers, a breakdown during a shift means lost earnings. Look for policies with roadside, recovery, and at-home cover. |
| Goods in transit (the items you carry) | Not included, separate policy | H&R insurance does not cover the value of goods lost, damaged, or stolen from your vehicle. Goods in transit (GiT) insurance covers this. See Section 4. |
| Public liability (non-road incidents) | Not included, separate policy | Injury or damage to a member of the public when you are not driving (e.g. dropping a parcel on someone’s foot) is not covered by H&R. Public liability insurance covers this. |
| Income protection / personal accident | Not included, separate policy | If you are injured and cannot courier, H&R does not replace your income. Self-employed income protection insurance covers this risk. |
Business Use vs Hire and Reward: What Is the Difference?
Business use (Class 1, 2, or 3) and hire and reward are not interchangeable. Business use covers driving in connection with your own employment or trade. Hire and reward covers transporting someone else’s goods or passengers for payment. The difference is the commercial relationship, not the mileage or frequency.
| Use Case | Business Use (Class 1/2/3) | Hire & Reward |
|---|---|---|
| Driving to a client meeting | Covered | Not required |
| Carrying your own tools to a job | Covered (carriage of own goods) | Not required |
| Delivering parcels for Evri or DPD | Not covered | Required |
| Delivering food for Uber Eats or Just Eat | Not covered | Required |
| Amazon Flex delivery shifts | Not covered | Required |
| Carrying a paying passenger (taxi, private hire) | Not covered | Required |
| Commuting to a fixed workplace | Covered (with commuting class) | Not required |
| Self-employed tradesperson visiting multiple clients | Covered (Class 2 or 3) | Not required (no goods carried for reward) |
Does Platform Insurance (Uber Eats, Amazon Flex, Evri) Cover You?
No, not adequately. Gig economy platforms provide a narrow layer of third-party motor liability cover while you are on an active delivery, but it does not cover your vehicle, it does not cover goods in transit, and it only applies during the active delivery window. Before you accept a job and after you complete one, you are on your own insurance.
| Platform | Cover Provided | Your Own H&R Policy Still Required? |
|---|---|---|
| Uber Eats | Third-party motor liability during an active delivery. Does not cover your vehicle damage, goods, or off-delivery driving. | Yes |
| Deliveroo | Third-party liability cover while on an active delivery assignment. Vehicle damage, theft, and goods not covered. | Yes |
| Just Eat | Basic third-party cover while delivering. Does not extend to your vehicle or goods being carried. | Yes |
| Amazon Flex | Commercial auto liability cover while on an active delivery block. Does not cover your vehicle for damage, and Amazon’s terms explicitly require you to hold your own H&R insurance. | Yes, contractually required |
| Evri (formerly Hermes) | Evri requires couriers to hold their own valid H&R insurance. Evri does not provide insurance for courier-partners. | Yes, contractually required |
| DPD / Yodel / DHL (self-employed) | Self-employed contractor agreements typically require you to provide proof of your own H&R insurance before onboarding. No platform cover is provided. | Yes, contractually required |
⚠️ The Coverage Gap That Catches Couriers Out
Platform insurance only covers you during an active delivery, from the moment you accept a job to the moment you mark it complete. During the gaps between deliveries (waiting for a new job, driving back to a pickup zone, taking a break), you revert to your own insurance. If you only have SD&P cover and an incident occurs between deliveries, you have no valid cover at all. Your H&R policy must be in place to cover the entire time you are working, not just the active delivery windows.
Do Couriers Need Goods in Transit Insurance as Well?
Yes, if the value of the goods you carry creates a financial exposure. Hire and reward insurance covers your vehicle and your liability as a driver. It does not cover the items in the back of your van. If a parcel is stolen, damaged in an accident, or goes missing, the sender or recipient can hold you responsible. Goods in transit insurance covers that liability.
| Factor | H&R Insurance | Goods in Transit Insurance |
|---|---|---|
| What is protected | Your vehicle and your road liability to third parties | The goods you are carrying on behalf of senders or clients |
| When it applies | Any road incident during a delivery shift | Loss, damage, or theft of goods while in your custody, in transit or during loading/unloading |
| Who makes the claim | You (for vehicle damage) or the third party you have injured / whose property you damaged | You, on behalf of the sender or recipient whose goods have been lost or damaged |
| Typical limit | Vehicle value (own damage) plus third-party unlimited liability | Usually £5,000 to £25,000 per load for courier work; higher limits available for high-value goods |
| Do gig platforms require it? | Yes, legally required | Not always mandatory for platform couriers, but you remain liable for loss or damage to goods in your custody |
| Is it legally required? | Yes, Road Traffic Act 1988 | Not legally required but financially essential |
Most specialist courier insurers offer GiT as an add-on to the H&R policy, which is generally the most cost-effective way to arrange it. If you work for a platform where the goods are low-value (food delivery, for example), GiT cover requirements are lower. If you carry electronics, pharmaceutical goods, or high-value parcels, GiT cover is essential and your per-load limit should reflect the maximum value of goods you carry at any one time.
Which Types of Vehicle Are Covered by H&R Insurance?
Hire and reward insurance is available for most vehicles used in courier and delivery work, from pedal-assisted cargo bikes through to large vans. The vehicle type determines which insurers will quote, what the premium looks like, and which specialist policies apply.
| Vehicle Type | Typical Use | Key Policy Considerations |
|---|---|---|
| Car | Food delivery (Uber Eats, Deliveroo), small parcel couriering, Amazon Flex | Cheapest H&R cover overall. Must specify courier use, not just business use. See our car courier insurance guide. |
| Van (up to 3.5 tonnes) | Multi-drop parcel delivery, Evri, DPD, DHL self-employed, Yodel | Most common courier vehicle. Premiums reflect high annual mileage and multi-drop risk. See our van courier insurance guide. |
| Motorbike / scooter | Food delivery, document couriering, urgent same-day delivery in urban areas | Specialist motorbike H&R policies available. See our motorbike courier insurance page. |
| Moped / 50cc | Urban food delivery, short-distance couriering | Lower premium than larger bikes but must have H&R endorsement. Standard moped insurance does not cover paid delivery work. |
| Electric bike (e-bike, cargo bike) | Urban food and parcel delivery, last-mile logistics | Specialist e-bike H&R cover is available but from a narrower panel of insurers. Not all standard cycle insurance covers paid delivery work. |
| HGV (over 3.5 tonnes) | Long-distance haulage, large freight delivery | HGV hire and reward is a separate specialist class. See our HGV insurance page. |
Annual Policy vs Pay-as-You-Go (Top-Up) H&R Insurance: Which Is Right for You?
The right policy type depends on how frequently you courier. Full-time couriers almost always save money with an annual policy. Part-time or occasional couriers should compare annual premiums against pay-as-you-go (also called top-up) H&R costs. Insurers such as Zego offer app-based top-up H&R cover that activates by the hour or day, making it the most flexible option available for gig economy couriers.
| Factor | Annual H&R Policy | Pay-as-You-Go (PAYG) H&R |
|---|---|---|
| Best suited to | Full-time couriers, 4+ days per week | Part-time, occasional, or seasonal couriers |
| Cost structure | Fixed annual premium, typically paid monthly | Charged per hour, per day, or per shift via an app |
| Cover when not working | Your standard SD&P or business use policy covers non-delivery driving | H&R cover activates when you switch on the app, deactivates when you switch off |
| Flexibility | Fixed commitment, cancellation fees may apply mid-term | Maximum flexibility, turn cover on and off as needed |
| Cost for 2 days/week couriering | Often more expensive overall than PAYG for low-frequency work | Usually cheaper for less than 3 days per week |
| Goods in transit cover | Can be bundled into the annual policy | May need to be arranged separately, check what is included |
| No claims discount | Builds annually, significant premium reduction over time for claim-free couriers | NCD typically does not accumulate on PAYG policies |
What Affects the Cost of Hire and Reward Insurance for Couriers?
H&R insurance is priced on risk. Couriers are statistically higher-risk drivers than private motorists because of high daily mileage, frequent stopping and starting, time pressure, and urban driving conditions. The factors below directly affect your premium, understanding them helps you reduce costs where possible.
| Rating Factor | Lower Risk / Lower Premium | Higher Risk / Higher Premium |
|---|---|---|
| Driver age | 25 to 55, experienced driver | Under 25 or over 70. Under-25 H&R premiums can be significantly higher, telematics policies are worth exploring. |
| Claims history | No claims for 3+ years; accumulated NCD | One or more at-fault claims in the last 3 years. Courier insurers apply stricter NCD rules than private motor insurers. |
| Vehicle type and age | Modern van, good safety rating, lower engine size, fitted tracking device | Older vehicles, high engine capacity, no immobiliser, high theft-risk models |
| Annual mileage | Under 20,000 miles per year | Over 30,000 miles per year. Full-time couriers often cover 40,000 to 60,000 miles annually. |
| Location | Rural or suburban routes, low-theft postcode | Central London and major city postcodes command higher premiums due to higher accident frequency and vehicle theft rates |
| Type of goods carried | Standard parcels, letters, documents, food | High-value electronics, pharmaceuticals, cash-in-transit, all require specialist cover and carry higher premiums |
| Overnight parking | Locked garage or private driveway | On-street overnight parking, particularly in urban areas, increases theft risk and premium |
What Happens If You Drive Without Hire and Reward Insurance?
Driving without valid hire and reward cover while couriering is legally equivalent to driving with no insurance at all. It results in an IN10 conviction, the same conviction code used for driving without any insurance, and carries severe consequences for your licence, your finances, and your ability to work as a courier.
🚫 IN10 Conviction: The Consequences of Invalid H&R Cover
- →IN10 conviction code added to your licence. This is the DVLA offence code for using a vehicle uninsured. It remains on your licence for four years and is visible to all future insurers.
- →6 penalty points as a minimum, rising to 8 points at the discretion of the court. Accumulating 12 points within 3 years triggers a totting-up disqualification, 3 further offences could end your ability to drive.
- →Unlimited fine. Courts have discretion on the amount. Fixed penalty notices of £300 can be issued at the roadside, but prosecution can result in a much higher fine in court.
- →Vehicle seizure. Police have the power under Section 165A of the Road Traffic Act 1988 to seize a vehicle being driven without valid insurance. Your vehicle can be impounded and you will be charged recovery and storage fees to retrieve it.
- →Personal liability for third-party damages. If you cause an accident while uninsured, the Motor Insurers Bureau (MIB) will pay the third-party claim, and then pursue you personally to recover the full cost. A serious injury claim can run to hundreds of thousands of pounds.
- →Courier contract termination. Platforms including Amazon Flex, Evri, DPD, and Yodel require proof of valid H&R cover. Discovery of an invalid policy typically results in immediate removal from the platform and potential breach of contract liability.
- →Premium loading for future insurance. An IN10 conviction significantly increases the cost of all future motor insurance for four years. Some standard insurers will refuse to quote entirely, forcing you into specialist high-risk markets at substantially higher cost.
| Offence / Outcome | Detail |
|---|---|
| DVLA conviction code | IN10, Using a vehicle uninsured against third-party risks. Stays on licence for 4 years from date of conviction. |
| Penalty points | 6 to 8 points at court discretion. Fixed penalty: 6 points. Discretionary disqualification is also possible for repeat offenders. |
| Fine | Unlimited in court. Fixed penalty notice at roadside: £300. Court fine is often substantially higher, particularly for commercial use without insurance. |
| Vehicle seizure | Police powers under Section 165A RTA 1988. Vehicle can be seized immediately. Release requires proof of valid insurance plus payment of impound and storage fees. |
| MIB recovery | The Motor Insurers Bureau pays third-party claims from uninsured drivers and pursues the uninsured driver to recover all costs paid out. |
Courier Insurance Checklist: Before You Start Your First Delivery
✅ Legal Requirements
- ☐Valid hire and reward insurance policy in place, not business use, not SD&P, specifically H&R
- ☐Policy documents confirm H&R / carriage for reward use class, have a physical or digital copy accessible when working
- ☐Vehicle is roadworthy and has a valid MOT (if over 3 years old)
- ☐Driving licence is valid and covers the vehicle type being used (check categories for vans over 3.5t)
📦 Cover Gaps to Address
- ☐Goods in transit insurance arranged if you carry goods of meaningful value for third parties
- ☐Public liability cover considered if you regularly enter premises, interact with customers, or handle goods at addresses
- ☐Breakdown cover included in policy or arranged separately, particularly important for full-time couriers
- ☐Platform cover gap understood, confirmed that H&R policy covers between-delivery gaps, not just active delivery windows
- ☐Income protection considered if self-employed and reliant on delivery earnings
⚠️ Common Mistakes to Avoid
- ☐Assuming business use cover on your existing policy is sufficient for courier work, it is not
- ☐Relying entirely on platform insurance and not arranging your own H&R policy
- ☐Underestimating annual mileage when getting a quote, if you exceed the declared mileage, a claim can be disputed
- ☐Failing to declare previous claims or convictions accurately, non-disclosure voids your policy
Frequently Asked Questions
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or insurance advice. Policy terms, premiums, and legal obligations vary and are subject to change. Always read your policy wording carefully and verify your use class before undertaking any paid delivery work. MyMoneyComparison.com is authorised and regulated by the Financial Conduct Authority (FCA) under registration number 916241.
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