What is hire and reward insurance?

What is hire and reward insurance?

What is Hire and Reward Insurance?

Hire and Reward insurance is a class of insurance that is a legal requirement for drivers who carry other people’s goods or passengers in return for payment.

This type of policy is also known as class 3 insurance. Class 3 insurance cover is essential for drivers operating as delivery drivers, taxis, courier drivers, chauffeurs, funeral cars, or anyone else who carries people or property for others in exchange for a fee. 

In contrast, if you only carry your own goods as part of your job you are unlikely to need hire and reward insurance. However, you will still require business use insurance. When considering what is hire and reward insurance and do you need it? You first need to consider if you are paid or rewarded directly as a result of the carriage of goods.  

Do I need hire and reward insurance?

Suppose you deliver parcels, provide services like home movers or furniture and white goods removal, and receive payment for these services. In that case, you will need a specialist hire and reward insurance policy.

However, hire and reward insurance typically only cover your vehicle. In addition, most hire and reward policies do not cover the vehicle’s goods in transit as these vary from business to business.

Any goods you carry for reward will need to be covered with an additional goods in transit insurance policy.

We can provide you with goods in transit insurance either as part of your hire and reward insurance or as a separate goods in transit policy.

Request a call back here from our team of trained advisors. 

What is the difference between Courier and Hire and Reward Insurance?

Courier insurance is sometimes called hire and reward insurance. While the two are similar, hire and reward is a class of use category covering many insurance types. Therefore the individual policies can be slightly different.

Couriers can use hire and reward insurance, but it’s important to remember a few different types of class 3 insurance as dictated by your occupation.

For example, taxi divers require hire and reward to carry passengers and therefore need specialist taxi insurance

There are different insurance policies required for hauliers and home removal services. Hauliers and removal services wouldn’t have the same insurance as a courier, as the risks are slightly different.

As a general rule, couriers and delivery drivers may have multiple stops, delivering various goods to different people. In contrast, hauliers or home removal vans only drive from the base to the predetermined delivery address.

In all instances, the basis of the hire and reward policies are very similar, and there is no notable difference between hire and reward and courier insurance.

Courier van and delivery driver insurance is much like standard car insurance in terms of available cover.

  • Third-party only (TPO)

TPO Insurance covers any claim by third parties. However, this does not cover damage to your courier van.

  • Third-party fire and theft (TPFT)

TPFT Insurance covers fire and theft of your van in addition to the third party only cover.

  • Comprehensive  Insurance (Comp / Fully Comp)

Comp insurance covers accidental damage to your van in addition to third party fire & theft cover.

Our experienced team of advisors will help you with which type of hire and reward insurance you need based on your occupation.

For taxi insurance, contact us here to request a callback, or for courier, insurance click here. 

Why do I need Hire and Reward Insurance?

Having the correct insurance is a legal requirement if you are being paid to deliver anything in return for payment. If you don’t have the right insurance, you won’t be covered as your standard car insurance will no longer be valid, leaving you uninsured in the event of a claim

The purpose of hire and reward insurance is to protect the vehicle and driver. However, it is essential to remember that if your van gets stolen, while that would be covered under your hire and reward policy, the £1000s worth of the goods inside it may not be.

It is vital to make sure you have an adequate goods in transit insurance policy to make sure you are covered should a claim occur.

Is Hire and Reward Insurance Expensive?

Often driving for hire and reward involves covering many more miles than your average driver, frequently in built-up areas and during busy periods of the day.

All these factors increase the chance of an accident, so hire and reward insurance will typically cost more than regular car insurance.

Quotes will vary for different occupations and purposes. For example, hire and reward insurance premiums would ordinarily cost a bit more for couriers.

In contrast, home removals tend to be slightly cheaper as they are perceived as lower risk. Often a courier will have targets on the number of parcel deliveries they need to make in a day, which means they are more likely to rush, therefore, statistically have more accidents.

Furniture and home removal drivers tend to drive longer distances, usually undertaking more motorway driving, with less start-stop active in busy towns and cities. As a result, insurers tend to see them as slightly lower risk and ordinarily receive cheaper hire and reward quotes.

How can I get cheap hire and reward insurance?

Keep it clean! A courier van driver with few or no points on their driving licence will usually find that they pay less for hire and reward insurance than drivers with speeding convictions or other endorsements.

A good driver is seen as safer and less risky to an insurance company and is likely to be offered a much cheaper class 3 insurance policy than someone with points or convictions.

Keep it healthy. Having your van serviced regularly and well maintained could prevent the risk of mechanical fault or faulty breaks or types which may lead to an accident.

In addition, fewer accidents mean that you are likely to accrue a no claims discount on your policy, meaning you should receive a cheaper hire and reward insurance quotation.

Cheaper Van: If your van is a high-end vehicle, is an import or is modified, you will likely find that your insurance cost goes up. So, by buying a cheaper van for your courier business means, you may also benefit from more affordable hire and reward insurance.

Your Mileage – The more miles you drive, the higher the risk of an accident. We will ask your milage during the quote stage to make sure you are given the most accurate premium.

Join the 1000’s Drivers choosing Riviera for their Hire and Reward Insurance

Our Class 3 hire and reward insurance products are suitable for van drivers and couriers.

Working with a large panel of insurance companies, we can quote you on a range of insurance solutions providing as much or as little cover as you need. We can also offer flexible monthly payment terms to help you spread the cost of your insurance cover.

A team of friendly, fully trained advisors can offer you the additional protection of legal expenses cover, public liability, personal accident, breakdown cover, windscreen repair and even employers’ liability cover.

  • Fully trained insurance specialists who search the market for you
  • Exclusive use of the free Riviera App, so you can access all your essential insurance information at your fingertips.
  • Replacement vehicle provided free of charge on any claims which are not your fault.
  • Our claims line operates 24 hours a day, 365 days a year, so we are always here when you need us the most
  • Flexible monthly payment options are available
  • Combine additional optional policies to create the best cover for you

Big enough to save you money, small enough to care.

Our staff are empowered to contact insurance companies and underwriters on your behalf, giving a fully personal service. We operate from a high street office in Torquay, Torbay, where you can pop in and see us arrange your cover, or you can request a call back for a time that suits you. 

We take the time to get to know your insurance needs and provide you with the cheapest hire and reward insurance policy, which the added benefit of optional coverage options is to suit you and your pocket. Finding cheap courier insurance has never been more simple.

If you are local to Torbay, you can even pop in and see us to arrange your insurance at our high street office on Union Street in Torquay.

Safeguarding your delivery vehicle with Riviera Insurance couldn’t be more straightforward.

Request a quote here or view our product range. 

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