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How To Get the Best Hire & Reward Car Insurance Deals

If you’re looking to use your personal car to make money from deliveries or carriage of passengers, it’s important to understand that in the UK, Hire and Reward insurance is a must-have.

So, what exactly does Hire and Reward insurance entail? Who should have it, and how can you secure the most competitive deal without compromising essential coverage?

Our blog is here to steer you through these important questions.

Ready to navigate the ins and outs of hire and reward insurance? Let’s get started.

What Is Hire and Reward Car Insurance?

Hire and reward car insurance is a specialised form of vehicle insurance aimed at those who use their car to transport goods or people for profit. This insurance covers the risks involved in using a car for commercial purposes.

Let’s break down the name to understand it better:

“Hire” – refers to the fact that you are being paid by a person or company to provide a transportation service.

“Reward” – refers to the financial gain you receive for this service.

In essence, if you are using your car as a means to earn money by transporting either goods or people, then hire and reward insurance is what you need to be appropriately and legally insured.

Why Do You Need Hire & Reward Car Insurance?

Hire and reward car insurance is essential for various reasons:

Legal Requirement

In the UK, if you’re using your car for delivery services, it’s legally classified as a commercial activity. Therefore, standard car insurance isn’t sufficient. Hire and reward isurance is mandatory for such activities. Non-compliance can lead to:

Fines: Significant financial penalties.

License Points: Points on your driving license or potential revocation.

Legal Trouble: Possible criminal charges, especially if involved in an accident without proper insurance.

Protects Your Livelihood

If you rely on your car for your income, having hire & reward insurance ensures you can afford repairs or a replacement if something happens to your vehicle. This way, you won’t suffer income loss due to the inability to use your car.

Liability Coverage

The likelihood of an accident increases when you’re on the road more frequently. In the event of an accident, you may be liable for damages or injuries to third parties. Hire & Reward insurance covers these liabilities, protecting you from potentially massive out-of-pocket expenses and legal complications.

Who Needs Hire and Reward Car Insurance?

As the gig economy evolves, more individuals rely on driving-based services for income. Let’s look at some examples of individuals who need hire and reward car insurance:

Courier Drivers (e.g., Amazon Flex & Evri Drivers)

These drivers deliver packages using their own vehicles. In the UK, the law mandates hire and reward insurance when transporting goods for payment. It safeguards against the potential loss of income and covers liabilities in case of accidents.

Food Delivery Drivers (e.g., Uber Eats)

Your vehicle is your lifeline if you deliver food through platforms like Uber Eats. This insurance is generally required and protects you against liabilities during accidents.

Uber/Taxi Drivers

Drivers transporting passengers for payment, whether through Uber or traditional taxi services, need hire and reward insurance. It caters to liabilities for passenger injuries and covers vehicle repair or replacement costs.

Securing the Best Hire and Reward Car Insurance Deals

1- Researching Providers and Gathering Quotes

Identifying Reputable Insurance Companies

Begin your journey by exploring well-known UK-based insurance providers such as Aviva, AXA, Direct Line or courier-specific insurance companies such as Inshur & Zego. They have long-standing reputations, robust financial standing, and, typically, reliable customer service. Remember to check out customer reviews on platforms like Trustpilot for insight into real user experiences.

Utilising Insurance Comparison Websites

Comparison websites like Compare the Market, GoCompare, and MoneySuperMarket can provide a quick overview of what’s available. They collate quotes from multiple providers based on the information you enter, giving you a head start in your research. But remember, these sites may not include all insurance companies, so they shouldn’t be your only tool.

Gathering Multiple Quotes

Never settle on the first quote you receive. Aim to gather at least three quotes for a balanced view. For instance, you might seek quotes from a well-known provider like AXA, a specialised provider like Zego (which caters specifically to gig economy workers), and a quote from a comparison site.

Reviewing and Comparing Coverage Options

After you’ve gathered quotes, it’s time to dive into the details. A cheaper policy from one provider might not offer the same coverage as a slightly more expensive option from another. For example, does the policy from Zego cover the same circumstances as the policy from AXA? Look at factors such as policy exclusions, the excess you’d need to pay in the event of a claim, and the overall coverage level.

2- Unlocking Discounts and Savings

Combining Multiple Insurance Policies

Consolidating your insurance policies can be financially beneficial. If you hold other insurance policies, such as personal car, home, or life insurance, consider obtaining them all from the same provider. Many insurance companies in the UK offer ‘multi-policy’ discounts, making your insurance portfolio more affordable and easier to manage.

Considering Multi-Car Insurance

If you own more than one vehicle for delivery or personal use, consider a multi-car insurance policy. Many UK insurers offer substantial discounts when you insure multiple cars under one policy. This could provide an excellent way to save money whilst simplifying your insurance arrangements.

Understanding No Claim Bonus

A No Claim Bonus (NCB) or No Claim Discount (NCD) can significantly impact your premium. This discount, earned for every claim-free year, can notably reduce your insurance costs. Familiarising yourself with your insurer’s NCB system and maintaining a clean claims record is key to leveraging this benefit.

Getting the best hire and reward car insurance deal requires strategic thinking and proactive communication with your insurer. Armed with these tips, you’ll be well-placed to ensure you’re getting top-tier coverage without breaking the bank.

Managing Risks to Lower Premiums

Demonstrate to your insurer that you’re a low-risk client. A clean driving record, the implementation of advanced safety measures in your vehicle, or additional driver training can position you as a low-risk client, potentially leading to lower premiums.

Using a route planner can also assist in safe driving. Delm8 Route Planner reduces stress for drivers and simplifies deliveries. It helps drivers cut down on mistakes and helps them to save an hour a day by providing accurate and efficient routes. It’s the most accurate route planner in the UK.

Try it for free today.

Delm8 Route Planner on the App Store (

Delm8 Route Planner – Apps on Google Play

3- After Purchase: Optimising Your Policy and Staying Informed

Once you have secured your hire and reward car insurance policy, your journey doesn’t stop there. Optimising your policy and staying informed are crucial components of making the most out of your insurance. Here are a few points to keep in mind:

Regularly Reviewing and Updating Your Policy

Life moves fast, and your insurance policy needs to keep up. Regularly reviewing and updating your policy ensures it continues to meet your needs. Whether you’ve upgraded your delivery vehicle, changed the areas you deliver to, or even increased the amount of work you’re doing, all these changes can impact your insurance needs. A regular review helps you avoid being under-insured or paying for coverage you no longer require.

Engaging in Safe Practices

Safety is paramount, especially when your vehicle is a significant part of your income. Engaging in safe practices not only keeps you, your goods and your customers safe but can also have a positive impact on your insurance premiums. Safe driving reduces the likelihood of claims, which can contribute to maintaining a No Claims Bonus. Regular vehicle maintenance also ensures your vehicle remains in peak operating condition, reducing the risk of accidents due to vehicle failure.

Keeping Track of Market Trends

The insurance market can change rapidly, with new products, services, and discounts appearing regularly. Keeping track of these changes can help you identify opportunities to optimise your policy. Regularly check insurance comparison websites and maintain open communication with your insurance provider to stay informed.

Understanding When to File Claims

Knowing when to file a claim can save you money in the long run. Small claims might be better covered out of pocket to preserve your No Claims Bonus. However, serious incidents or ones where liability might be disputed should be reported to your insurer immediately. Understanding your policy’s excess and the impact of claims on your future premiums will help you make informed decisions.

Hire and reward insurance isn’t just a legal requirement. It’s a practical safeguard for your livelihood, whether you’re delivering parcels, meals, or people.

In this blog, we’ve navigated the intricacies of hire and reward insurance,  understanding its scope, who needs it, and how to secure the best deal. We’ve also emphasised the importance of continually reviewing and updating your policy and staying abreast of market trends.

Remember, every driver’s situation is unique, so understanding your needs is vital to ensuring your insurance provides comprehensive protection.

Which insurance provider do you use for your hire and reward insurance, and why did you choose them?

Drop a comment below and let us know.

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