Hire and Reward Insurance Explained: What Every UK Courier Needs to Know (2026)

TL;DR: Hire and reward (H&R) insurance costs £1,200–£2,000/year and is the legal minimum for any paid courier in the UK. It replaces standard van insurance, which is void the moment you accept payment for delivery work. You also need goods-in-transit (£150–£350) and public liability (£80–£200) on top. Compare specialist brokers — not comparison sites — for the best rates.

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Hire and reward insurance is the foundation of every courier driver's insurance stack. Without it, you have no valid motor insurance for delivery work — and driving without valid insurance is a criminal offence in the UK that carries six penalty points, a £300 fixed penalty, and potential seizure of your vehicle.

This guide explains what hire and reward insurance covers, what it does not cover, how much it costs, and how to get the best price without compromising on protection.

What is hire and reward insurance?

Hire and reward (H&R) insurance — sometimes called courier insurance or carriage of goods for hire and reward — is a commercial motor insurance policy that permits you to use your vehicle to carry goods in exchange for payment.

Standard van insurance covers social, domestic, and pleasure (SDP) use, sometimes extended to include commuting. The moment you accept payment to transport goods for a third party, that policy is void for that journey. H&R insurance extends your coverage to include commercial delivery work.

There are two main types of H&R policy:

1. Parcel network cover — Designed for drivers working for parcel networks like DPD, Yodel, or Amazon Flex. These policies typically cover multi-drop delivery work within a defined area.
2. Same-day dedicated courier cover — Designed for drivers like those on Hauly who carry out point-to-point same-day deliveries. These policies cover longer routes and a wider range of goods. Make sure your policy covers same-day dedicated work — some exclude it.

What hire and reward insurance covers

H&R insurance covers your vehicle and your liability as a driver while engaged in commercial delivery work. Specifically:

• Third-party damage — If you cause injury or property damage to another person while driving for work, your H&R policy covers the cost (up to policy limits)
• Vehicle damage — Depending on whether you choose comprehensive or third-party only, your own vehicle damage may be covered
• Legal liability as a commercial driver — Your policy recognises that you are driving commercially, which standard SDP insurance does not

What hire and reward insurance does NOT cover

H&R insurance does not cover everything. The two most critical gaps are:

• The cargo itself — Goods-in-transit (GIT) insurance is a separate policy that covers the items you are carrying against loss, theft, or damage. H&R alone leaves you personally liable for the full value of any lost or damaged goods.
• Third-party injury during loading/unloading — Public liability (PL) insurance covers injury or property damage that occurs when you are not driving but are still working — for example, dropping a parcel on a customer's foot.

For full protection, you need all three policies. See our complete courier insurance guide for the full cost breakdown.

How much does hire and reward insurance cost?

H&R insurance for a small van in the UK typically costs between £1,200 and £2,000 per year. The main factors affecting your premium are:

Factor	Impact on premium
Postcode	London and major cities cost 20–40% more. Rural areas are cheapest.
Age	Under-25s pay £2,000–£3,500. Over-30s with clean records pay £1,200–£1,600.
Claims history	Each at-fault claim adds 30–50% for 3–5 years.
Vehicle value	Higher-value vans cost more to insure.
Annual mileage	25,000 miles costs less than 50,000 miles. Declare accurately.
Policy type	Comprehensive costs 20–30% more than third-party only.

How to get the best price on hire and reward insurance

Use specialist courier insurance brokers. Standard comparison sites (Compare the Market, GoCompare, Confused.com) surface limited H&R results and often redirect you to general commercial vehicle policies that do not cover courier work properly. Specialist brokers — such as Coversure, Insure Fleet, Freeway Insurance, and Courier Insurance Expert — have access to underwriters who build policies specifically for delivery drivers.

Pay annually. Monthly payment plans on H&R insurance typically charge 20–30% APR. On a £1,600 premium, that means paying £400–£500 extra over the year. If you can pay upfront, you save that entire amount.

Increase your voluntary excess. Moving from a £250 to £500 voluntary excess typically reduces your premium by 10–15%. Only do this if you have the cash available to cover the excess if you need to claim.

Install a dashcam. Most specialist H&R insurers offer a 5–15% discount for a forward-facing dashcam. A £60 dashcam that saves you 10% on a £1,600 premium pays for itself in the first year.

Declare accurate mileage. If you declare 50,000 miles but only do 25,000, you are paying for cover you will not use. Review your mileage declaration annually.

Hire and reward insurance for Hauly drivers

All Hauly drivers must hold valid H&R insurance that covers same-day dedicated delivery work across the UK. You will be asked to upload your certificate of insurance during the driver registration process.

The minimum requirements to join Hauly are:

• Hire and reward insurance — UK-wide, covering same-day dedicated delivery
• Goods-in-transit insurance — minimum £10,000 per load
• Public liability insurance — minimum £1 million cover

See our complete courier insurance guide for more details on each requirement.

Frequently asked questions

Can I use my existing van insurance for courier work?

No. Standard van insurance (SDP or SDP+C) does not cover commercial delivery work. If you have an accident while carrying goods for payment on a standard policy, your insurer will refuse the claim. You must hold hire and reward insurance for any paid delivery work.

Do I need hire and reward insurance if I only do courier work part-time?

Yes. Even one paid delivery per week requires H&R insurance. The frequency of commercial use does not change the requirement — any journey where you are carrying goods for payment requires commercial cover. Some brokers offer pay-as-you-go or short-term H&R policies for part-time couriers.

Can I get hire and reward insurance with convictions?

Yes, but your premium will be higher. Specialist brokers have access to non-standard schemes for drivers with convictions. Be honest about your conviction history — non-disclosure can void your policy.

How long does it take to arrange hire and reward insurance?

Most specialist brokers can issue a policy within 24–48 hours. If you need cover immediately, some brokers offer same-day cover with a phone call and a card payment. Always check the policy documents before driving.

Getting started as a Hauly driver

If you already have the right insurance in place, you can register as a Hauly driver in under 10 minutes. If you need to arrange H&R insurance first, use the cost ranges in this guide to budget and compare quotes from specialist brokers.

For more information on the full insurance stack, see our guides on courier insurance costs and goods-in-transit insurance. For city-specific courier work, check our pages for London courier quotes, Manchester, Birmingham, and Leeds.

For a full breakdown of courier costs including insurance, fuel, and vehicle expenses, see our UK courier cost index 2026.