What is food delivery insurance?
Food delivery insurance is a special type of insurance cover in the UK for people who deliver food using cars, vans, motorbikes, and scooters. It’s also known as ‘Hire & Reward’ insurance and is there to protect drivers who get paid for delivering food.
This insurance is important whether you’re taking orders over the phone or through apps. It’s for drivers working with local restaurants as well as big delivery services like Uber Eats, Deliveroo, and Just Eat. With so many food deliveries happening in the UK, having the right insurance gives delivery drivers peace of mind.
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How does food delivery insurance work?
Food delivery insurance is designed to protect drivers and riders when they’re out on the road making deliveries. There are two main types:
Third Party, Fire & Theft
This insurance looks out for other people if there’s an accident and it’s the delivery driver’s fault. It’ll pay to fix or replace their vehicles and belongings and will also cover any legal costs if they get hurt.
But, if the delivery driver’s own vehicle gets damaged or stolen, this insurance won’t cover it. That’s unless they add ‘Fire & Theft’ to their policy, which will pay out if their vehicle is stolen or damaged by fire.
Fully Comprehensive
This is the full package. It covers other people and the delivery driver if there’s an accident. So, if the delivery driver is at fault, it’ll pay to fix or replace their vehicle and any other damages. It also covers things like a broken windscreen, or if someone steals the radio or sat-nav from the vehicle.
It’s worth noting that companies like Zego offer food delivery insurance that can be set up quickly. Plus, it can be linked straight away to the driver’s account with big delivery companies like Uber Eats, Deliveroo, and Just Eat.
Why do you need food delivery insurance?
In the UK, if you’re delivering food using a vehicle, you’re legally required to have food delivery insurance. Why? Because your regular car insurance, known as Social, Domestic, and Pleasure (SD&P), doesn’t cover you when you’re getting paid to deliver food.
It’s like this: if you’re earning money from deliveries, you’re running a small business on wheels, and that needs its own special insurance.
You’ve got choices when sorting out this insurance. You can either add food delivery cover to your existing SD&P insurance or choose an ‘All-In-One’ policy that bundles everything together.
And there’s more! While most Food Delivery insurance policies cover parcel delivery, they won’t cover you if you’re driving passengers for money, like a taxi would. That’s a different kind of service called ‘private hire‘.
What kind of food delivery insurance policies are available?
In the UK, if you’re delivering food, there are different types of Food Delivery insurance policies to suit your needs:
Pay-As-You-Go Insurance
Pay-as-you-go cover is super flexible. Drivers and riders only buy this cover when they’re working. It’s managed through a top-up app, making it a great choice for those who deliver food now and then.
30 Days Monthly Insurance
This is a short-term cover that can be adjusted to fit when you’re working. It’s perfect for drivers who might work seasonally or have jobs in other sectors too.
Annual Policies
This is for the full-timers. If you’re delivering food or parcels all year round, this long-term policy is the most cost-effective way to stay covered.
No matter which policy you choose, it’s essential to have the right insurance in place. It ensures you’re protected while doing your job, whether you’re delivering for local restaurants or big platforms like Uber Eats, Deliveroo, and Just Eat.
What do you need to buy food delivery Insurance?
If you’re looking to deliver food in the UK, you don’t need a special driving licence like taxi drivers. A standard full UK or EU driving licence will do the trick. If you’re on a motorbike or scooter, you don’t even need a full licence. As long as you’ve got your Compulsory Basic Training (CBT) permit and display ‘L plates’ on your vehicle, you’re good to go.
Now, when it comes to insurance, here’s what you typically need:
- Driving Licence: A full UK/EU driving licence or, for scooters with a max engine size of 125cc, a CBT permit.
- Claims History: No more than 2 claims in the past 3 years, whether it was your fault or not.
- Age: You should be between 21 and 75 years old. For scooters, it’s 21 to 65.
- Vehicle Ownership: The vehicle you’re using should either be owned by you or registered in your name.
- Location: You must live and work in England, Scotland, or Wales.
- Vehicle Condition: Your vehicle should be in a condition that’s legally fit to be on the road.
Remember, while you might meet all these requirements, it’s essential to choose the right policy. Whether it’s hourly, monthly, or annual, make sure it fits your work schedule and offers the protection you need.
How much is food delivery insurance?
In the UK, the cost of Food Delivery insurance varies based on several factors, but there are some general guidelines to give you an idea:
By the Hour (Pay-As-You-Go)
- Car delivery drivers might pay up to £0.80p per hour.
- Scooter riders could be looking at up to £0.70p per hour.
30 Days Monthly Insurance
- Car delivery drivers can expect from £90 for a 30-day policy.
- Scooter riders might pay from £50 for the same duration.
- Van delivery drivers can find policies starting at £110 for 30 days.
Annual Policies
- Car delivery drivers could pay from £930 annually.
- Scooter riders might be looking at from £890 for the year.
- Van delivery drivers can expect prices starting at £1010 annually.
It’s worth noting that these are average prices from Zego, and actual costs can vary based on factors like your age, driving record, and the type of vehicle you use. For instance, a more expensive or powerful vehicle might increase the cost.
Similarly, younger drivers or those with past claims might find higher prices. But by choosing the right duration and type of cover, and by maintaining a good driving record, you can find a policy that fits your budget.
Chris Richards
Chris is a personal finance specialist who founded Council Tax Advisors in 2012, assisting over 250,000 people with their Council Tax debt. Observing that many clients overpaid on utilities, he launched Utility Saving Expert in 2014, an energy price comparison site. In 2016, the platform expanded its services to include consumer and business insurance comparisons. Utility Saving Expert stands out with its commitment to social responsibility, donating 10% of net profits to fuel poverty charities, underscoring its dedication to both client value and community support.