PAYG Food Delivery Insurance

Pay as You Go Food Delivery Insurance

With so many food delivery platforms to choose between, working as a food delivery driver is a way to make a living. But many people who drive for Deliveroo, Uber Eats or Just Eat don’t do so on a full-time basis – it’s a side hustle rather than a full-time job.

For those drivers it probably doesn’t make sense to fork out for annual courier insurance – a pay-as-you-go food delivery insurance policy would probably be a more cost effective option.

Luckily, there are a number of specialist courier insurance providers that offer short-term, pay as you good food delivery insurance.

Do I need pay as you go delivery insurance even if I’m only driving occasionally?

Yes, standard car insurance or motorbike insurance policies won’t cover you while you’re working as a food delivery driver, so even if you only drive for a food delivery app very occasionally, you’ll still need pay as you go food delivery insurance.

Unlike standard car and motorbike insurance, these food delivery insurance policies reflect the risks that you face that are unique to your job, since:

• You’ll be covering more miles than the average driver
• You’ll typically be driving at night and in all weathers
• You’ll be working to a tight timetable making multiple drop offs.

As far as insurers are concerned, all these factors can increase the risk of an accident happening, which is something your pay-as-you-go delivery insurance policy will take into account.

What does PAYG food delivery insurance cover me against?

What’s included will depend on the terms and conditions set out by the insurer you decide to take a policy out with, but you should be able to choose from one of three levels of cover:

• Third party only – covers compensation and repairs if you cause injury or damage to someone else or their property in an accident. This is the minimum level of cover you can have by law but it’s important to remember that it won’t pay to repair your car.
• Third party, fire and theft – includes third party only cover and will also compensate you if your car is stolen or damaged by fire.
• Comprehensive cover – includes third party, fire and theft and will also pay to repair your car if you have an accident (even if the accident is your fault).

Other features that might be part of your policy or that you’ll often be able to add on include:

• Breakdown cover and courtesy vehicle – provides roadside help and a replacement vehicle if yours is being repaired.
• Legal expenses – covers legal fees and court costs if you need to defend yourself.

How much does pay as you go food delivery insurance cost?

The honest answer? It depends.

The insurance premium calculation will take into account a wide range of different risk factors, many of which will be unique to your and your vehicle, including:

• Your location – if you happen to deliver in an area with a higher crime rate then your ay as you go delivery insurance is likely to cost more.
• The type of vehicle you drive – it probably goes without saying that PAYG delivery insurance will cost more if you’re insuring a high-end car than it would if you were taking out a policy for a cheap scooter or moped.
• Your mileage – covering more miles increases the time you spend on the road which raises the risk of being involved in an accident.
• Your claims history and driving record – a recent claim can increase your premium, as do points on your licence.
• Your age – younger drivers are statistically more likely to be involved in a road accident which is reflected in higher premiums.

If delivering takeaway food is only something you do on the side, it’s tempting to go for the cheapest policy you can find but that can be a false economy in the long-term.

Any policy you have should cover the activities you do and provide you with enough protection considering all the potential risks. While that could cost a little more upfront, it could save you from significant financial hardship later on.