Pay As You Go Courier Insurance

Pay as you go delivery insurance lets you pay for hire and reward cover only while you are working, usually switched on and off in an app. It suits drivers and riders whose delivery hours change from week to week.

If you deliver most days, an annual policy may work out simpler. The table below helps you decide.

Is paying by the hour right for your delivery pattern?

If you are choosing between paying by the hour and an annual policy, your weekly hours decide it. Here is a rough guide.

If you are unsure, add up your expected working hours for a month. Then compare the hourly cost against a monthly payment on annual cover.

How pay as you go courier insurance works

You buy a base set-up, then switch cover on in an app before each shift. You are billed for the time it is active, often by the minute or hour, and switch it off when you finish.

Many policies sit on top of a private car or bike policy and cover only your working time. Others bundle both. Read which type you are buying, as the private policy must stay live if it is required.

Your phone runs both the delivery app and the insurance app, so mount it properly. Holding a phone while driving can mean a £200 fine and 6 points, while a dashboard holder or windscreen mount is allowed (GOV.UK).

Pros and cons of pay as you go hire and reward

Pros

• You only pay for the hours you actually deliver
• Easy to pause during exams, holidays or quiet months
• Good for testing delivery work before committing to a year

Cons

• Long weeks can cost more than an annual policy
• Forgetting to switch on leaves you uninsured for that trip
• Minimum cover periods can make short sessions poor value
• Fewer insurers offer it for vans

Situations where flexible delivery cover needs a closer look

• Several apps. Check every platform you use is covered by the same policy.
• A leased or rented vehicle. The owner may already insure it, so ask before buying your own.
• Moped riders. You still need a valid CBT or full licence, and the CBT lasts 2 years (GOV.UK).
• Parcel blocks. Some platforms set minimum cover. Amazon Flex, for example, asks car drivers for hire and reward plus minimum social, domestic and pleasure cover (Amazon Flex).

What forgetting to switch on can cost

A paid delivery made with cover switched off counts as driving uninsured. Police can give a £300 fixed penalty and 6 points, and a court can impose an unlimited fine or a ban (GOV.UK).

Set a habit: switch on in the car park before you accept the first order, and switch off only after the last drop.

Ian Wilson, Managing Director at Tiger.co.uk, says: “Pay as you go can suit patchy hours, but it only protects you if the switch is on. Make it part of your start-of-shift routine, like checking your fuel.”

What to have ready before you compare

• Your licence details, or CBT certificate for a moped
• The vehicle registration and its current private policy, if you have one
• Every delivery app or firm you work for
• A rough idea of your hours per week and per month

Tiger.co.uk works with Seopa Ltd (FCA FRN 313860), which runs the comparison, and every insurer on the panel is FCA-authorised. Over three million people have used it. Compare courier quotes there, then weigh them against any pay as you go app you are considering.

For a fixed period instead, see temporary van insurance. Many riders also add gadget insurance for the phone that runs every shift, or breakdown cover for the car. Back to the courier insurance hub.

Does pay as you go courier cover work for food and parcels?

Usually, yes. Many pay as you go hire and reward policies cover both, but some are limited to certain platforms or vehicle types. Check the policy wording before your first shift.

What happens if I forget to switch my cover on?

You are not insured for that delivery. Driving for reward without the right cover can lead to a £300 fixed penalty and 6 points, or a court fine and ban.

Compare courier insurance quotes on Tiger.co.uk and weigh them against your real hours. Terms vary, including minimum cover periods, so read the details.