I cant get car insurance because I do courier work

Feral_Moon

Why would you need Hire & Reward insurance as a self-employed courier? Surely that's aimed at taxi drivers?

George_Michael

Feral_Moon wrote: »

Why would you need Hire & Reward insurance as a self-employed courier? Surely that's aimed at taxi drivers?

As the OP asked their question getting close to 2 years ago, I would hope that they have their insurance sorted out by now.

Edwood_Woodwood

Feral_Moon wrote: »

Why would you need Hire & Reward insurance as a self-employed courier? Surely that's aimed at taxi drivers?

The clue is in the phrase "Hire and reward".

Reward is to profit from driving. A pizza delivery man is getting paid, rewarded, just like a taxi driver.

Even some breakdown vehicles are only allowed to tow the vehicle and not give lifts to the occupants as they are not insured to do so.

Also, there is case law where a hotel offered free lifts to its customers to the bus station and back but they were prosecuted as it was seen that the hotel had profited from giving this service as part of the hotel booking.

The customers were held to have paid for the lifts via the room bookings.

The hotel therefore needed hire and reward insurance which they didn't have.

Feral_Moon

George_Michael wrote: »

As the OP asked their question getting close to 2 years ago, I would hope that they have their insurance sorted out by now.

Maybe they have but that doesn't mean other people aren't interested in the question!

Feral_Moon

Edwood_Woodwood wrote: »

The clue is in the phrase "Hire and reward".

Reward is to profit from driving. A pizza delivery man is getting paid, rewarded, just like a taxi driver.

Even some breakdown vehicles are only allowed to tow the vehicle and not give lifts to the occupants as they are not insured to do so.

Also, there is case law where a hotel offered free lifts to its customers to the bus station and back but they were prosecuted as it was seen that the hotel had profited from giving this service as part of the hotel booking.

The customers were held to have paid for the lifts via the room bookings.

The hotel therefore needed hire and reward insurance which they didn't have.

I've always looked on 'hire and reward' as in transporting people for reward of money. Not goods carried by a courier.

It seems the Police are of the same opinion as I, when questioned about whether they need Hire and Reward insurance to deliver packages their response was...

Dear *******,
Thank you for your enquiry regarding the matter of insurance cover for your business vehicle. Your correspondence was considered today by our Traffic department based here at Warrington and Sgt 2655 Farnworth advised that 'hire and reward' is not necessary for your business based on the information supplied but applies more to businesses such as taxi companies.

Regards
Northern Customer Service Desk
Cheshire Constabulary

Taken from this link: http://www.ukpoliceonline.co.uk/index.php?/topic/41245-hire-or-reward-insurance/

Nodding_Donkey

Decent courier companies will have an established relationship with an underwriter to provide insurance. Yes it's expensive but that is the nature of the job. Third party top up insurance is great until you have an accident that goes 50/50 and you suddenly find out that you are only going to get £5k for a vehicle that will cost £10k to replace or even worse, one that's your fault so you get £0

Car_54

Edwood_Woodwood wrote: »

The clue is in the phrase "Hire and reward".

Reward is to profit from driving. A pizza delivery man is getting paid, rewarded, just like a taxi driver.

Even some breakdown vehicles are only allowed to tow the vehicle and not give lifts to the occupants as they are not insured to do so.

Also, there is case law where a hotel offered free lifts to its customers to the bus station and back but they were prosecuted as it was seen that the hotel had profited from giving this service as part of the hotel booking.

The customers were held to have paid for the lifts via the room bookings.

The hotel therefore needed hire and reward insurance which they didn't have.

"The Driver and Vehicle Licensing Agency defines hire and reward as encompassing any payment in cash or kind by (or on behalf of passengers which gives them a right to be carried."

Pizza delivery does not fit that definition. Nor do most types of business, including mine.

It's academic - we need insurance for business use, and the insurers need to know precisely what type of buiness.

bugslet

I would say it comes under Goods in Transit insurance.

You will pay more because you are using your vehicle for business and not private use. In the case of goods, the Insurere will expect that you will be doing above average mileage and that potentially the goods may affect the handling/braking of the vehicle. Hence the extra premium.

Herzlos

There's presumably also an increased risk of accident from rushing to deliveries if you are on tight deadlines or paid by delivery

Edwood_Woodwood

bugslet wrote: »

I would say it comes under Goods in Transit insurance.

You will pay more because you are using your vehicle for business and not private use. In the case of goods, the Insurere will expect that you will be doing above average mileage and that potentially the goods may affect the handling/braking of the vehicle. Hence the extra premium.

Goods In Transit Ins only covers what it suggests, the goods being transported.

That doesn't get away from the fact that appropriate compulsory personal insurance is still required.

And even fully comp ins doesn't allow to drive for profit, only hire and reward does.