FCA authorised · FRN 724952 0117 325 0027Quote & buy →
Insurance wiki
Hire and reward means using a vehicle to carry goods or passengers in return for payment. In UK motor insurance it is a separate class of use that private and most business policies exclude.
Part of: Commercial vehicle insurance
In short
Hire and reward is the use couriers, delivery drivers, removers and hauliers need on their motor policy, because they carry other people's goods for payment. The Road Traffic Act 1988 requires cover for the use of the vehicle, so driving for payment on a private policy can mean driving uninsured. The Act also lets motor policies exclude damage to goods carried for hire or reward, so the load is usually covered by goods in transit insurance. Passenger hire and reward is written as taxi or private hire cover.
Hire and reward is the carriage of goods or passengers for a fee, fare or other payment. On a motor certificate it appears as a permitted use, alongside or instead of social, domestic and pleasure, commuting and business use. For goods it is often written as hire and reward, carriage of goods for hire and reward, or courier use; food delivery is often a separate class.
If a vehicle is used for paid deliveries on a policy without hire and reward, the insurer may decline cover and the driver may be using the vehicle without insurance for that use. GOV.UK lists a £300 fixed penalty and 6 points, or an unlimited fine and disqualification in court. Section 151 may require the insurer to satisfy certain third-party judgments, with a right to recover from the person responsible.
Apex arranges courier and delivery cover, including goods in transit, for sole traders, multi-drop operators and small fleets. A broker reads each enquiry and comes back with options, and there is no fee for a quote. Cover is always subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus the vehicle, the drivers and the type of delivery work.
It means the vehicle is insured for carrying goods or passengers for payment. Without it on the certificate, paid deliveries or paid passenger journeys are usually outside the cover, even if the policy includes social, domestic and pleasure or business use.
No. Commuting cover adds travel to and from a permanent place of work. Paid delivery is a different use and is usually excluded unless hire and reward, courier or fast food delivery use is shown on the certificate.
Usually not. Section 145(4)(d) of the Road Traffic Act 1988 allows motor policies to exclude damage to goods carried for hire or reward, and most do. Goods in transit insurance is the usual cover for the load, subject to its limits and conditions.
They share the idea of payment, but insurers write them separately. Hire and reward for goods covers couriers and delivery work. Carrying passengers for fares is written as taxi or private hire cover, which ties in with local licensing requirements.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
