Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
What Is Hire and Reward Insurance?
Hire and reward insurance covers your vehicle when you use it for paid delivery work. It is a legal requirement if you transport goods or passengers for payment.
Standard personal car or van policies exclude commercial use. Without hire and reward cover, your insurance is invalid the moment you start a paid delivery.
What Hire and Reward Insurance Covers
- Your vehicle when used for commercial deliveries
- Third-party liability (injury or damage to others)
- Legal use of your vehicle for paid transport work
What It Does Not Cover
- The goods or parcels inside your vehicle
- Loss, theft or damage to items you are carrying
- Your own business stock or equipment
Hire and reward is the foundation of any paid delivery work, whether you work for a courier company, a food delivery platform or run your own delivery business.
What Is Goods in Transit Insurance?
Goods in transit insurance (GIT) protects the items you carry from loss, theft or damage while they are in your possession. It is a separate policy from your vehicle insurance.
Many courier companies and platforms require proof of goods in transit cover before they let you accept deliveries. Without it, you may be personally liable for the full value of lost or damaged parcels.
What Goods in Transit Insurance Covers
- The value of parcels or items being carried
- Loss or theft from your vehicle
- Damage to goods during transit
- Claims from customers or the courier company
What It Does Not Cover
- Your vehicle itself
- Third-party liability or injury claims
- Items excluded in your policy (e.g. cash, fragile goods, high-value electronics)
Goods in transit cover is usually required if you work with high-value items, deliver on behalf of multiple companies or handle goods that belong to third parties. You can read more about this in our guide on whether delivery drivers need extra cover for the goods they carry.
Is Goods in Transit the Same as Hire and Reward?
No. Hire and reward insurance and goods in transit insurance are not the same.
- Hire and reward covers your vehicle and legal liability when you use it for paid work
- Goods in transit covers the items inside your vehicle
They serve different purposes and are usually purchased separately. Some insurers offer policies that combine both, but you should check what is included and confirm the level of cover matches your needs.
What Is Courier Insurance?
Courier insurance is not a distinct policy type. It is a term used to describe a package of cover designed for delivery drivers.
These policies typically combine:
- Hire and reward insurance
- Goods in transit cover
- Public liability insurance (for injury or property damage caused during deliveries)
Courier insurance is convenient because it bundles everything into one policy, often at a better price than buying each element separately.
How Hire and Reward, Goods in Transit and Courier Insurance Fit Together
A typical setup for a delivery driver includes:
- Hire and reward insurance: covers your vehicle and makes paid delivery work legal
- Goods in transit insurance: protects the parcels you carry
- Public liability: covers injury or damage claims from your work
When these are bundled together, insurers often call it courier insurance.
If you are just starting out, read our guide on what you really need before starting work as a parcel driver.
Do You Need All Three?
It depends on the type of delivery work you do and who you work for.
Occasional Food Delivery (e.g. Deliveroo, Uber Eats)
Some hire and reward policies include basic goods in transit cover as standard, especially for low-value food orders. Check your policy wording to confirm.
Full-Time Parcel Delivery
If you deliver parcels for courier companies or handle goods belonging to third parties, you will almost always need:
- Hire and reward insurance
- Standalone goods in transit cover (or a bundled courier policy)
Many courier platforms and companies require minimum levels of goods in transit cover, often between £1,000 and £10,000 per load.
Delivering Your Own Goods
If you run your own business and deliver your own products, you may only need hire and reward insurance. However, goods in transit cover is still recommended to protect your stock while on the road.
What Does Goods in Transit Insurance Cost?
The cost depends on:
- The value of goods you carry
- The type of items (electronics, food, documents, etc.)
- Your claims history
- Whether you leave goods in your vehicle overnight
Typical premiums range from £200 to £600 per year, depending on cover level and risk factors.
What Does Hire and Reward Insurance Cost?
Hire and reward policies are usually more expensive than standard motor insurance because of the higher mileage and increased risk.
Expect to pay between £800 and £2,500 per year, depending on:
- Your age and driving history
- The type of vehicle
- The area you work in
- Your annual mileage
If you need cost guidance for specific situations, see our article on how much courier van insurance costs for new drivers in the UK.
What to Look for in a Policy
When comparing hire and reward or courier insurance, check:
- Cover limits: does the goods in transit element match the value of items you carry?
- Exclusions: are high-value items, cash or fragile goods covered?
- Overnight storage: is cover valid if goods are left in your vehicle overnight?
- Platform requirements: does the policy meet the minimum standards set by your courier company or app?
Choosing the Right Setup
Start by identifying what type of delivery work you will do. Then:
- Confirm whether hire and reward insurance is required (it almost always is)
- Check if you need standalone goods in transit cover or if it is included
- Consider a bundled courier insurance policy if you need both, plus public liability
The right choice depends on the companies you contract with and the value of goods you carry. If in doubt, ask your courier platform or employer what level of cover they require.
Get a Quote for Courier or Goods in Transit Insurance
Whether you need hire and reward cover, goods in transit insurance or a full courier policy, comparing quotes can save you hundreds of pounds. Use the button on screen to get tailored quotes from UK insurers in minutes.