The most expensive mistake a new courier can make is delivering on a standard policy. Social, domestic and pleasure - even with business use added - does not cover carrying goods for payment. One claim while delivering and a standard insurer can refuse to pay out entirely.
What hire and reward (H&R) cover is
Hire and reward insurance covers a vehicle being used to transport goods (or people) in exchange for payment. For delivery drivers it's the legal foundation of the job: parcel carriers and courier platforms require proof of H&R cover before you carry a single parcel.
The three covers couriers actually need
- Hire & reward motor policy - the vehicle itself, on courier use. The non-negotiable one.
- Goods in transit (GIT) - covers the parcels you carry, typically £5,000-£10,000 per load. Most operators require £10k GIT; it usually costs £100-£200 per year.
- Public liability - covers injury or damage you cause while delivering (the trolley through the glass door). From around £6.50 per month; some carriers mandate £1m-£5m of cover.
What it costs in 2026
- Pay-as-you-go: from roughly £3 per day for car and small-van cover - ideal while you test whether the work suits you.
- 30-day rolling: £80-£150 per month depending on vehicle and history.
- Annual van policy: £900-£2,500. New couriers with no commercial no-claims sit at the top of that range; it falls quickly after a clean first year.
How to pay less
- Build commercial no-claims - one clean year typically cuts renewals by 20-30%.
- Choose the van wisely - smaller engines and common models (Transit Custom, Berlingo, Vivaro) rate cheaper than rare or high-powered vans.
- Pay annually if you can - monthly instalments carry APR that adds 10-20% over the year.
- Match cover to work pattern - occasional weekend couriers usually save with pay-as-you-go; five-day drivers save with annual.
- Declare accurately - under-declaring mileage or work type saves pennies now and voids the policy when it matters.
Where to get covered
Compare specialist H&R insurers and brokers on our insurance partners page - including pay-as-you-go providers if you're just starting out. Then browse van delivery jobs or courier jobs to put the cover to work. For what you'll take home after insurance and other costs, see the courier pay breakdown.