How Much is Food Delivery Insurance Cost in the UK

Food Delivery Insurance

The food delivery industry has risen at its peak during the pandemic all through the world.

In that period, going out to eat was banned. Thousands of people joined this industry as new drivers and many people started working in bars, restaurants, hotels, etc. in the UK.

There is becoming a huge demand for various branded food delivery companies at a rapid rate. Still, more drivers are joining this industry every day. But before they get on the road they must have insurance for their vehicle.

So, a frequent question always comes into the driver’s mind” How much does food delivery insurance cost in the UK?”

Here, I am providing all the details.

Why do you need food delivery insurance?

Food delivery insurance is a legal requirement in the United Kingdom for all food delivery drivers. Standard Motor Insurance does not cover all types of business activity such as social, domestic, and pleasure (SD&P).

Drivers can buy food delivery cover in addition to their SD&P insurance or they can also buy an All-In-One policy that will provide SD&P and food delivery protection.

Most food delivery insurance policies also cover parcel delivery but the insurance does not cover the transport of passengers for payment. For this, you need to purchase a private hire policy.

Food Delivery Insurance

Factors that decide how much you need to pay:

Insurers consider several factors while deciding the cost of their Food Delivery Insurance policy. Here are these factors:

  • Your age and driving record
  • Past claims and accidents
  • The type of vehicle that you use for your delivery work
  • Your No-claim discount
  • Where do you keep your vehicle when it is not used

Commonly, the more powerful and expensive your vehicle is, the more you have to pay. If you have too many penalty points on your license it may lead to driving up the cost. Younger drivers usually need to pay more, No NCD means you pay the full premium.

However, there are some actions that you may take to reduce the cost of the policy.

  • Generally, a normal-priced vehicle that doesn’t go so fast can keep costs down.
  • You need to maintain a points-free license.
  • You can buy NCD protection that keeps your discount safe if you have an accident.
  • Young drivers can’t do anything at their age but they need to drive safely. Thus they can lower the insurance cost as they improve.
  • Working unsociable hours such as at night or in any inclement weather patterned location will influence the cost of your insurance. If you can mitigate such situations then your insurance cost may be decreased.

What level of coverage does delivery insurance provide?

The level of coverage you will get determines how much protection you will get from your Food Delivery Insurance. For example,

Third-party policies only provide you protection if any damage you may do to another person or their property or their vehicle.

But, you must remember that it will not protect you and your vehicle if any incident occurs where you are found to the faulty.

Fully comprehensive policies will cover the cost of damages to you and your vehicle if there is any incident occurs and you are found as faulty.

But, how much coverage you will get depends upon the level of coverage you choose when you take out your Food Delivery Insurance Policy.

The type of cover you purchase affects the price:

Food Delivery Insurance comes in various categories. These are Third Party, Fire & Theft, Fully Comprehensive, public liability, product liability, and hire and reward insurance.

Third-Party, Fore & Theft:

Third Party, Fire & Theft protects other people, their property, and their vehicle if there is an incident occurs where you are faulty. This insurance covers other person’s vehicles and property and covers legal liabilities for their injury.

It does not cover you which means the delivery driver, and your vehicle or property unless your vehicle is stolen or spoiled due to fire.

Fully Comprehensive:

A fully comprehensive Food Delivery insurance policy protects you in the event of an accident where you are at fault. It also protects from fire and theft shattered windscreen, theft of audio, and sat-nav equipment.

As you can see Fully Comprehensive insurance policy covers more so it will also cost more.

Hire and Reward Insurance:

The hire and Reward insurance policy is designed for food delivery drivers who use their vehicles for delivering food. The hire and reward policy covers a multitude of vehicles including vans, cars, taxis, motorbikes, and e-scooters.

Public liability Insurance:

Public liability Insurance provides coverage to you and your courier business against third-party claims. If you and your vehicle hit an accident then a third party can claim the compensation and the potential legal fees incurred with the accident.

It covers the claims made as a result of injury, property damage, and even any death on and off your premises.

Product liability Insurance:

Product liability insurance covers your business against third-party claims incurred as a result of faulty goods. As a delivery driver, you transport the goods and thus you are unlikely to incur any product liability.

So, if the goods that you are delivering are faulty or damaged to any third party then product liability insurance provides a good safety net to have in place.

How long do you need to be covered?

It will be cheaper to purchase Food Delivery Insurance by the year. But, some drivers need to cover only seasonal or part-time work. So, you can get the option to purchase the monthly Food Delivery insurance policy or hourly basis to keep costs down.


Is food delivery insurance a legal requirement in the UK?

Ans: Yes, food delivery insurance is a legal requirement for food delivery drivers in the UK. To deliver food in the UK you need to purchase a Food delivery insurance policy along with a social, domestic, and pleasure policy.

Why Does Food Delivery Insurance Cost More Than a Standard Policy?

Ans: Food Delivery Insurance costs more than a standard policy because it covers some additional responsibilities and duties incurred with a food courier. These include but not are limited to:

  • Product liability
  • The conveyance of third-party goods
  • Time pressure
  • Unsociable working hours

What insurance is required for food delivery?

Ans: If you want to work as a food delivery driver in the United Kingdom then you need to buy the following insurance policies:

  • Social, Domestic, and Pleasure car insurance
  • Goods in transit insurance
  • Hire and Reward insurance
  • Personal accident insurance
  • Public liability insurance

What is food delivery insurance in the UK?

Ans: Food delivery insurance is an extraordinary kind of insurance cover in the UK for individuals who convey food utilising vehicles, vans, motorbikes, and bikes. It’s otherwise called ‘Recruit and Award’ insurance and is there to safeguard drivers who get compensated for delivering food.

What happens if you get caught without food delivery insurance?

Ans: If you are driving a vehicle for the delivery of goods and you are involved in an accident, if you get caught without food delivery insurance then you need to face legal penalties. You may end up having to pay for any damage to your vehicle and the goods that you were delivering.

Our Conclusion:

For food delivery drivers the cost of Food Delivery Insurance is variable as there are various types of insurance available in the market in the UK.

So, it is important to ensure that you are legally covered by your insurance. You also need to consider the most financially viable insurance available to you.

Here, in this article, I have provided all the details that you may require while choosing a Food Delivery Insurance policy.

If still you get confused regarding any issue then you can consult with the experts to get the proper advice. 

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