What is Hire and Reward Car Insurance?

Hire and reward car insurance is a type of car insurance that covers you for using your vehicle for hire or reward purposes. This type of insurance usually covers you for transporting goods or passengers for remuneration, such as delivering takeaway food or driving a taxi cab. It is usually more expensive than regular car insurance as it covers a wider range of activities.

Hire and reward insurance is mandatory in some countries, while in the United Kingdom, it’s only necessary if you’re using your vehicle for business purposes or carrying paying passengers, such as in a taxi. In other countries, such as the United States, it’s required for all cars used for hire or reward purposes, regardless of whether they’re used for business or pleasure.

Who Needs Hire and Reward Car Insurance?

If you use your car for business or to transport paying passengers, you will need hire and reward car insurance. This includes taxi drivers, couriers, food delivery drivers, and private hire drivers. Even if you only use your car occasionally for these purposes, it’s important to have the right type of insurance in place, as regular car insurance won’t cover you.

It’s also important to check with your insurer that you’re covered for all the activities in which you’ll be using your vehicle. For example, if you’re a courier, you’ll need to make sure that your insurance covers you for transporting hazardous materials, as well as goods and passengers.

What Does Hire and Reward Car Insurance Cover?

Hire and reward car insurance typically covers you for a wide range of activities, including transporting goods and passengers for remuneration, delivering takeaway food or driving a taxi. It also covers you for any potential legal costs if you’re involved in an accident, as well as damage to your vehicle.

It’s important to note that hire and reward car insurance is not the same as private hire insurance, which is only for insured drivers who are hired by a company to drive their vehicles.

How Much Does Hire and Reward Car Insurance Cost?

The cost of hire and reward car insurance will depend on a variety of factors, including the type of vehicle you’re insuring, the level of cover you require, and the type of activities you’ll be using your car for. Generally speaking, it’s more expensive than regular car insurance, as it covers a wider range of activities.

It’s important to shop around for the best deal and make sure that you’re getting the right type of cover for your needs. It’s also wise to compare the excesses and premiums of different insurers, so you can be sure that you’re getting the best value for money.