What is food delivery insurance?
Food delivery insurance provides essential cover for individuals in the UK who deliver food using a variety of vehicles, including cars, vans, motorbikes, and scooters. Often referred to as ‘Hire & Reward’ insurance, this type of policy is specifically designed to protect drivers earning money by delivering food.
Whether you’re processing orders over the phone or through digital platforms, this insurance is crucial. It caters to those collaborating with both local eateries and major delivery services such as Uber Eats, Deliveroo, and Just Eat. With the surge in food delivery across the UK, having the appropriate insurance not only complies with legal requirements but also offers delivery drivers considerable peace of mind.
How does food delivery insurance work?
Food delivery insurance is crafted to shield drivers and riders while they are actively delivering food. The insurance is offered in three main types of coverage:
Third-Party Only: This is the foundational level of insurance and the minimum cover legally required in the UK. It ensures that if the delivery driver is at fault in an accident, the insurance will cover damages and injuries inflicted on other parties, but it does not cover any damage to the delivery driver’s own vehicle or belongings. It’s an economical choice for drivers primarily concerned with fulfilling legal requirements.
Third Party, Fire & Theft: This policy extends beyond the Third-Party Only cover by adding protection for the delivery vehicle against theft or damage due to fire. If an accident happens and the delivery driver is at fault, this insurance covers the repair or replacement costs of the other party’s vehicle and possessions, along with any associated legal expenses. However, damage to the driver’s own vehicle from accidents is not covered unless fire or theft is involved.
Fully Comprehensive: This is the most extensive insurance option available. It includes all the protections offered by Third Party, Fire & Theft, and also covers damages to the delivery driver’s own vehicle, even if they are at fault. This plan covers repairs or replacements of the driver’s vehicle, additional damage from accidents, and other misfortunes such as a broken windscreen or theft of items like radios or sat-navs.
Notably, innovative insurance providers like Zego offer streamlined food delivery insurance that can be activated promptly. This insurance can be directly linked to the driver’s account with major delivery services such as Uber Eats, Deliveroo, and Just Eat, facilitating immediate cover and peace of mind.
Related Read: How to get food delivery insurance
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Get QuotesWhy do you need food delivery insurance?
In the UK, food delivery insurance is a legal requirement if you use a vehicle to deliver food. This is because your standard car insurance, typically covering Social, Domestic, and Pleasure (SD&P) use, doesn’t extend to activities where you’re compensated for delivering food.
Think of it this way: delivering food for payment essentially means you’re operating a small business on wheels, which necessitates specific insurance to cover the associated risks.
When it comes to arranging this insurance, you have a couple of options. You can either extend your existing SD&P policy to include food delivery cover, or you can opt for an ‘All-In-One’ policy that consolidates your standard and delivery insurances into one comprehensive package.
Additionally, it’s important to note that while most food delivery insurance policies include cover for parcel deliveries, they typically do not extend to carrying passengers for profit, such as in a taxi service. This would require a separate ‘private hire’ insurance policy.
What kind of food delivery insurance policies are available?
In the UK, a variety of food delivery insurance policies are tailored to meet different needs:
Pay-As-You-Go Insurance: Offering supreme flexibility, this type of cover is ideal for occasional food delivery drivers or riders. It’s purchased only during work hours and is typically managed via an easy-to-use app. This option suits those who deliver sporadically or as a side gig.
30-Day Monthly Insurance: This short-term cover is adaptable to your working schedule, making it perfect for seasonal drivers or those who juggle multiple jobs. It provides a convenient solution for anyone looking to insure their delivery activities on a monthly basis.
Annual Policies: Designed for full-time delivery professionals, annual policies are the most economical choice for those who deliver food or parcels throughout the year. This long-term cover ensures continuous protection and peace of mind.
Choosing the right policy is crucial—it safeguards you while you work, whether you’re delivering meals from local eateries or through major platforms like Uber Eats, Deliveroo, and Just Eat.
What do you need to buy food delivery insurance?
If you’re planning to deliver food in the UK, the requirements are straightforward, though they vary slightly depending on the vehicle:
Driving Licence Requirements:
- Cars and Vans: A standard full UK or EU driving licence is necessary.
- Motorbikes and Scooters: A full licence isn’t required. You can operate with a Compulsory Basic Training (CBT) permit and must display ‘L plates’ on your vehicle.
Insurance Criteria:
- Driving Licence: As above, plus specific details for scooters (up to 125cc engine size requiring only a CBT permit).
- Claims History: Ideally, no more than two claims in the past three years, regardless of fault.
- Age Limits: Generally, you need to be between 21 and 75 years old. For scooter users, the age range is 21 to 65.
- Vehicle Ownership: The vehicle used must be owned by you or registered in your name.
- Residency: You must reside and work in England, Scotland, or Wales.
- Vehicle Condition: Your vehicle must be legally fit to be on the road, meeting all necessary safety standards.
It’s crucial to remember that meeting these criteria is just the beginning. Selecting the right policy—whether hourly, monthly, or annual—is essential to ensure it aligns with your work pattern and provides adequate cover.
How much is food delivery insurance?
The cost of food delivery insurance in the UK varies depending on several factors, but here are some typical rates to give you an idea:
By the Hour (Pay-As-You-Go):
- Car Delivery Drivers: Approximately £0.80 per hour.
- Scooter Riders: Around £0.70 per hour.
30 Days Monthly Insurance:
- Car Delivery Drivers: Starting from £90 for a 30-day policy.
- Scooter Riders: From £50 for the same period.
- Van Delivery Drivers: Policies begin at £110 for 30 days.
Annual Policies:
- Car Delivery Drivers: Prices start from £930 annually.
- Scooter Riders: From £890 per year.
- Van Delivery Drivers: Annual costs begin at around £1010.
These figures are indicative averages provided by insurers like Zego, but actual costs can differ based on various factors, including:
- Age and Driving Experience: Younger drivers or those with less experience may face higher rates.
- Driving History: A clean driving record without past claims can help reduce costs.
- Vehicle Type and Condition: More expensive or powerful vehicles typically incur higher insurance costs.
Choosing the right policy duration and type, along with maintaining a good driving record, will help you secure a food delivery insurance policy that fits both your needs and your budget.