The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.

What Is Pay-As-You-Go/Top-Up Delivery Insurance

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Pay-As-You-Go Delivery Insurance

“Matching” your existing coverage means if you have, for example, a Third Party Only SD&P policy, then your PAYG coverage will also be TPO. It's not always the case, but is worth being aware of/asking about.

Pay-As-You-Go (PAYG) Delivery Insurance is a form of vehicle insurance designed to cover you for Hire and Reward. It sits “on-top” of your existing Social, Domestic & Pleasure (SD&P) insurance, and usually matches the level of coverage of your existing policy. It's often referred to as "top-up" insurance, and the two are often used interchangeably.

It can be a great option for any couriers or delivery drivers looking for flexible, reasonably priced insurance, offering protection in the event of accidents without the commitment of often expensive annual policies—a year-long Courier Insurance policy starts from just under £2,000 per year, which is no small commitment at a cost close to 4X as much as the average cost of SD&P insurance.

However, many SD&P insurers will not accept pay-as-you-go/top-up coverage as valid, and therefore you risk losing your coverage if you’re with one of these providers and they find out you’re doing delivery work with PAYG cover. Learn more about this useful but sometimes-difficult-to-arrange cover for delivery drivers in this in-depth guide.

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What is Pay-As-You-Go Delivery Insurance?

Pay-As-You-Go (or Top-Up) Delivery Insurance is designed to protect your vehicle while you’re driving in return for payment (“Hire and Reward”). It’s designed to only cover you while you’re working, when you wouldn’t be insured by your traditional Social, Domestic & Pleasure policy, meaning drivers can avoid signing up to expensive annual policies.

It’s exceptionally popular with drivers working with some of the UK’s leading delivery apps, who enjoy the flexible, low-cost protection and its synergy with their apps—drivers with the likes of Deliveroo or UberEats are automatically covered as soon as they log-in (provided the top-up cover is from an approved insurance partner such as Zego), so they don’t even need to tell their insurer when they do/don’t need it.

What Does Pay-As-You-Go Delivery Insurance Cover?

As it’s designed to work alongside your SD&P policy, it’ll often match the level of your regular vehicle insurance—so you’ll always know what you’re covered for whether an accident happens while you’re driving for work or otherwise.

Types of Vehicle InsuranceThird Party OnlyThird Party, Fire and TheftComprehensive
Repair if your vehicle is damaged in an accident
red x
red x
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Repairs if your vehicle is damaged in a fire or stolen
red x
thumbs up
thumbs up
Compensation if other people are injured in an accident
thumbs up
thumbs up
thumbs up
Damage to other people’s property
thumbs up
thumbs up
thumbs up

The coverage kicks in from the moment you sign in to your app of choice and make yourself available to accept deliveries, and ends whenever you complete your final delivery—do keep in mind you will need to be online on your app of choice for it to apply. Your safest bet is to log in when you get into your vehicle to start your shift, as Nimblefins research indicated there can be some murky waters for insurers if you’re driving to a shift but aren’t online.

It won’t cover you for anything above the level of coverage you’ve already got, so if you’re worried that the long hours, unfamiliar roads and busy parking locations might make you more liable to an accident or theft then you’ll want to chat to your SD&P provider about upgrading your policy to a higher level.

What’s Not Covered By Pay-As-You-Go/Top-Up Delivery Insurance?

The best answer to this will always come from your insurance provider themselves, but here’s a few things most PAYG policies won’t cover:

  • Damages to any packages, goods or tools you’re transporting (you’ll need Goods in Transit for this)
  • Compensation above the limit of your policy
  • Damages/injuries to passengers (you’ll need Public Liability for this)
  • Theft of anything left inside the vehicle
  • If the driver of your vehicle isn’t covered to drive it (for someone else to drive your vehicle you’ll need either an Any Driver policy or to have named them specifically when signing up)

How Much Does Pay-As-You-Go/Top-Up Delivery Insurance Cost?

You can expect to pay between £1-£2.50 per hour for your Pay-As-You-Go/Top-Up Delivery Insurance. The amount you pay will depend on the same variables that effect that cost of your traditional vehicle insurance, which might include:

  • Miles driven per year
  • Where you’re based
  • How old you are
  • If you have been convicted of any prior driving offences
  • How long you’ve been driving for
  • Your vehicle make, model and age

While you can’t control your age (and it probably isn’t convenient to move for the sake of saving a few pence per hour on your coverage), you can try to pick less powerful vehicles that are cheaper to repair and popular with other couriers to reduce your risk profile and save money in the long run.

Where To Get Cheap Pay-As-You-Go/Top-Up Delivery Insurance

The UK’s largest insurers are yet to offer pay-as-you-go coverage (and some won’t even cover couriers at all), which is to say your options are fairly limited.

Nimblefins research and interviews with drivers have Zego as the UK’s top Pay-As-You-Go Delivery Insurance business, and their partnerships with many of the UK’s top delivery and courier apps make getting signed up a fairly simple process (they'll even upload your insurance documentation to UberEats or Deliveroo for you, saving you the hassle).

Some insurers will offer you monthly policies, but these are few and far between (and could prove expensive if you’re working less than 20 hours a week), so if you’re looking for a PAYG insurance solution then Zego is probably your best bet.

FAQ’s

Do Amazon/Deliveroo/JustEat/Uber/UberEats Drivers Need Hire & Reward?

Absolutely—we’ve put together guides for each to give you a more in-depth view of what insurances each company provides its drivers and what you’ll require to get signed up.

If you’re working in any of the following roles (and accepting payment in return for your service) then yes, you’ll require a Hire and Reward policy.

  • Courier
  • Haulier
  • Taxi
  • Chauffeur
  • Furniture Removal
  • Delivery Driver

If you’re just helping a friend or family member and aren’t making any profit from the journey then you’re unlikely to need a policy—say, for example, you take a friend to the airport and he pays for your petrol there and back—this wouldn’t necessitate getting a policy.

Drivers should consider a form of business liability insurance called public liability insurance. If you’re employed by a restaurant as a driver then you should be covered for this (public liability) by the business—you should absolutely check with them before taking to the road though.

If you’re working for an app/multiple apps then the answer varies—click the relevant button at the top of the FAQ’s to see what each company does/doesn’t cover you for. Most apps will not cover you if you cause damages or injury (or incur them yourself) so you’ll want to consider your own public liability policy. Prices start from around £50 per year for drivers.

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The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.