What Is Hire & Reward Insurance?
Hire & Reward Insurance is a legal requirement if you are transporting goods, passengers or hiring out your vehicle in return for payment. Without it, your standard vehicle insurance can be deemed invalid, meaning that in the event of an accident your insurance would not cover you.
What Does This Type Of Insurance Cover?
Hire and reward insurance protects drivers and their vehicles in the event of an accident, theft or damage. However, although it is legally required for transporting goods, it does not cover the goods themselves. If you also wish to protect the goods you are transporting, you will need goods in transit insurance on top of your hire and reward policy.
When you arrange cover through Quote Goat, your tailored policy can include hire and reward cover as well as goods in transit.
Which Professions Require Hire and Reward Insurance?
Hire and reward insurance is necessary for any profession that involves transporting goods, belongings or people including:
- Taxi Drivers & Chauffeurs
- Furniture Removals
- Car, Bike Or Van Couriers
- Parcel Delivery
- Food Delivery
The type of hire and reward policy required will depend on the service you are offering. Couriers, for example, tend to make frequent deliveries in a local area whereas hauliers or furniture removal companies will typically make longer trips, less frequently. Each of the services above will carry different levels of risk which subsequently affects the cost of your policy.
When you get a hire and reward insurance quote through Quote Goat, a specialist insurance provider will take you through your requirements and provide a tailored policy to suit your needs.
What Factors Affect The Cost Of A Hire & Reward Policy?
The cost of your cover will be decided, in part, by the service offered and the level of risk involved. A courier, for example, is more likely to make a claim than a removals company because couriers tend to have delivery targets to meet, making multiple drop-offs each day. Asides from your profession, other factors that affect the cost of your cover include:
- Experience: younger drivers have less experience and tend to be involved in more accidents. Although this fact is inescapable, demonstrating that you are a safer driver by building up a no claims bonus will reduce policy costs over time.
- Mileage: Higher mileage will increase your cost as you spend more time on the road.
- Vehicle type: The type of vehicle you drive and insurance category it belongs to will also affect the cost of insurance. Taking vans as an example, a larger van for furniture removals will be more expensive to insure than a smaller Ford Transit.
- Goods carried: Although goods in transit insurance will cover the cost of replacing goods damaged or stolen, a vehicle carrying expensive goods may be deemed more likely to be broken into, resulting in a higher policy cost.
To keep the cost of your hire and reward policy to a minimum it is recommended to build up a no claims bonus and compare prices for your cover each year. Checking prices annually helps to ensure that you are on the most competitive rate; it is a well-known fact that loyalty often does not pay in the insurance industry.
Multiple Occupations Requiring Hire and Reward Cover
The rise of the gig economy has led to greater flexibility in the type of services that someone in the hire and reward industry may wish to offer. Examples of this would be:
- A taxi driver supplementing their income by working for a food delivery app, such as Uber eats or Deliveroo, or
- A furniture removals company using their van for Amazon parcel deliveries
If you decide to expand the services you offer it is vital that you inform your insurer as it is likely that your current hire and reward insurance policy will only cover you for your original occupation. Using the first example above, if the taxi driver were to have an accident whilst delivering food, their current taxi hire and reward policy may be deemed to be invalid.
Compare Hire and Reward Insurance Quotes with Quote Goat
When it comes to finding the right hire and reward insurance at a great price, it pays to compare quotes from multiple providers. Quote Goat helps thousands of customers each year to do exactly that with our free, no-obligation service. Upon submitting the quote form, a customer’s details are received by up to 5 hire and reward insurance providers who will contact you to provide tailored quotations. You, as the customer, can then chose the policy most suited to your requirements.
Hire & Reward Insurance FAQs
Q: Is hire and reward insurance a requirement?
A: If you carry goods or passengers, then it is a legal requirement to have hire & rewards insurance in place. Not doing so may invalidate your standard vehicle insurance.
Q: Can cover be paid for monthly?
A: Insurance providers will accept monthly or annual payments. Although, it is cheaper to pay for your policy annually, if possible, as monthly payments will incur interest.
Q: Is vehicle insurance required also?
A: Vehicle insurance is required alongside hire and reward insurance. Your tailored quote can include cover for both.
Q: I’m unsure what cover I need, can you help?
A: Quote Goat’s service gives you access to free advice from specialist hire & reward insurance brokers. They can guide you through the whole process and advise on every aspect of your policy & requirements.
Get A Quote For Your Hire & Reward Cover Today
Whether you operate as a van courier, haulier or a taxi driver, use our free hire and reward insurance comparison service to see how much you could save today.