Car Delivery Insurance Explained: Benefits, Options, and Costs

Car delivery insurance is a type of car insurance that protects you while working as a food delivery driver. Most personal auto policies will not cover losses incurred while working, so you need to have special delivery driver insurance to avoid paying out of pocket for damages or injuries.

In this article, we will explain what car delivery insurance is, why you need it, how to get it, and how much it costs.

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What is car delivery insurance?

Car delivery insurance is a type of insurance that covers you when you use your car to deliver goods, such as food, parcels, or groceries, for a third party. It is also known as hire and reward insurance, courier insurance, or food delivery insurance. Car delivery insurance is different from regular car insurance, which only covers you for social, domestic, and pleasure use (SD&P) or commuting. If you use your car for business purposes, such as making deliveries, you need to have a different class of use on your policy, which is called carriage of goods for hire and reward (H&R).

It can be either standalone or combined with your personal car insurance. Standalone car delivery insurance only covers you when you are working as a delivery driver, and you need to have a separate personal car insurance policy for your non-work-related driving. Combined car delivery insurance covers you for both personal and work-related driving, so you don’t need to have two policies.

Why do you need car delivery insurance?

You need this insurance because most personal car insurance policies will not cover you if you use your car for business purposes, such as making deliveries. This means that if you have an accident or cause damage to someone else’s property or person while working as a delivery driver, your personal car insurance will not pay for the claim. You will have to pay for the repair costs, medical bills, legal fees, and compensation out of your own pocket. This can be very expensive and put you in financial trouble.

Additionally, if you don’t have this insurance and you use your car for deliveries, you are breaking the terms and conditions of your personal car insurance policy. This means that your insurer can cancel your policy, refuse to renew it, or charge you a higher premium. You may also have trouble finding another insurer who will cover you in the future. Furthermore, driving without proper insurance is illegal and can result in fines, points on your license, or even disqualification from driving.

Therefore, if you work as a food delivery driver or a courier, you need to have this insurance to protect yourself from the risks and costs associated with your job.

How to get car delivery insurance?

To get car delivery insurance, you need to find an insurer that offers this type of coverage. Not all insurers do, so you may need to shop around and compare quotes from different providers. You can use online comparison sites or brokers to help you find the best deal for your needs.

When you apply for car delivery insurance, you will need to provide some information about yourself, your car, and your work. Some of the information you may need to provide are:

  • Your name, address, date of birth, and driving license details
  • Your car make, model, registration number, mileage, and value
  • The type of goods you deliver (e.g., food, parcels, groceries)
  • The company or platform you work for (e.g., Uber Eats, Deliveroo, Amazon)
  • The number of hours or miles you work per week
  • The level of cover you want (e.g., third party only, third party fire and theft, or comprehensive)
  • Any optional extras you want (e.g., breakdown cover, windscreen cover)

Based on this information, the insurer will calculate your premium and offer you a quote. You can then decide whether to accept the quote or look for another one.

How much does car delivery insurance cost?

The cost of car delivery insurance depends on various factors, such as:

  • Your age and driving experience
  • Your claims history and no claims bonus
  • Your car type and value
  • The type of goods you deliver
  • The company or platform you work for
  • The number of hours or miles you work per week
  • The level of cover you choose
  • The optional extras you add

Generally speaking, car delivery insurance is more expensive than regular car insurance because it involves higher risks and more wear and tear on your vehicle. However, the exact cost can vary widely depending on your individual circumstances and the insurer’s criteria.

Provider Policy Type Level of Cover Cost per Hour Cost per Month Cost per Year
Zego Pay-as-you-go H&R only Third-party only £0.80* N/A N/A
Zego 30-day H&R only Third-party only N/A £122* N/A
Zego Annual combo (SD&P + H&R) Third-party only N/A N/A £1049*
Admiral Annual H&R only Comprehensive N/A N/A £1200**
Admiral Annual combo (SD&P + H&R) Comprehensive N/A N/A £1500**

Based on a 30-year-old driver with a 2018 Ford Fiesta delivering food for Uber Eats in London. **Based on a 30-year-old driver with a 2018 Ford Fiesta delivering parcels for Amazon in London.

As you can see, the cost can vary significantly depending on the provider, the policy type, and the level of coverage. Therefore, it is important to compare quotes from different insurers and choose the one that suits your budget and needs.

In conclusion, this type of insurance is a type of car insurance that covers you when you use your car to deliver goods to a third party. It is different from regular car insurance, which only covers you for personal or commuting use. If you work as a food delivery driver or a courier, you need to have car delivery insurance to protect yourself from the risks and costs associated with your job. You can get car delivery insurance from various insurers who offer this type of cover, but you need to compare quotes and choose the best deal for your situation. This insurance can be more expensive than regular car insurance, but it can save you a lot of money and hassle in the long run.