In order to deliver fast food, you’ll require either a full-time courier insurance policy or a top-up/pay-as-you-go hire and reward policy. According to NimbleFins, traditional social, domestic & pleasure (SD&P) insurance (which would cover you for trips to the supermarket or to visit your family, for instance) will not suffice – even if you declare “business use” – so it’s important to make sure you’re properly covered.
The penalties for failing to upgrade your insurance can be severe, and that’s before you even consider that you’re unlikely to be hired in the first place if you don’t already have appropriate cover before delivering – apps like UberEats, Deliveroo and JustEat will require proof of insurance before they allow you to complete the signing up process, so you’re unlikely to find much work without proper insurance.
If you do manage to take on food delivery work without the correct insurance, then be prepared to face harsh consequences. If you are involved in an incident, your insurer is likely to refuse to cover you for any damages, as their coverage is limited to the terms you agreed to when you initially signed up, which will have exclusions for taking on work in return for payment. On top of those potentially expensive bills, you can be fined, issued penalty points and may even be disqualified from driving altogether if you’re caught on the road by the police.
If the case goes to court, be aware that the police can seize (and in some cases destroy) any vehicle that goes on the road without proper coverage.
Does car insurance cover fast food delivery?
Traditional social, domestic & pleasure (SD&P) car insurance will not cover you for fast food delivery. In order to be properly covered, you’ll need to upgrade your vehicle insurance to either full-time courier insurance or attach a pay-as-you-go/top-up hire and reward policy to your existing coverage.
Both have their benefits and disadvantages – a full-time courier policy will cover you for both social and business-related travel (i.e., food delivery), so you’ll be covered at all times while on the road, no matter what the purpose of your journey. These policies, however, can be expensive and are a big commitment for the year, especially if you don’t see fast food delivery work as a long-term employment solution.
Hire and reward can be an excellent option for anybody looking for part-time or short-term delivery work – perhaps while you’re between employment or as something to do for a few evenings each week. There are, however, a huge number of questions surrounding the legality of part-time insurance, and many SD&P insurers do not allow you to ‘attach’ top-up insurance to your existing car insurance, so make sure to check with your insurer before you take to the road for any deliveries.
It is essential to settle on one or the other ultimately – it’s illegal to be on the roads without the correct insurance, and using your vehicle in return for payment (courier, food delivery, etc.) will not be covered by your SD&P insurance, so do your research and work out which one works best.
How much is fast food delivery insurance?
An annual fast food delivery insurance policy is likely to set you back around £220 per month for cars and roughly £150 per month for a motorbike. But driver experience and no claims bonuses mean some drivers will pay less, and many will pay more. The same factors that impact the cost of your SD&P cover come into effect here, too, such as your age, your vehicle power and the value of your vehicle.
Costs for hire and reward policies vary, but most will charge you between £1-3 hourly, depending on your vehicle type and driver profile.
As a younger driver, don’t be surprised if you find it difficult to get quotes for delivery driving. Many of the UK’s largest insurers and underwriters shy away from offering quotes/cover to delivery drivers. Of those who will offer insurance to delivery drivers, few are keen to insure drivers on the age scale’s younger end. Simply put, they’ve assessed that younger drivers are significantly more likely to be involved in an accident than more experienced road users. There are options out there, but don’t be surprised if they’re more challenging to find and charge you quite heavily for your cover.
How much extra is food delivery insurance?
The average cost of car insurance in the UK is around £460 annually – a monthly spend of just under £40. Courier car insurance is quite a bit more expensive than that, with quotes likely to cost around £220 monthly for a lot of drivers – almost half the cost of an annual SD&P policy.
This means that on average, you could expect to pay an additional £180 monthly to cover your vehicle for food delivery (or 5.5X more). While it might seem unreasonably expensive, food delivery drivers are exposed to several risks while on the road that social drivers will almost never be, such as regularly driving on unfamiliar roads, parking roadside to make collections/deliveries and having to drive at higher speeds to meet tight delivery deadlines.