Courier

Hire and reward vs courier insurance: what is the difference?

Hire and reward is a single motor cover; courier insurance is usually a fuller package. Here is the difference and how to tell which you need.

Hire and reward is one specific type of motor cover that lets you carry goods for payment. Courier insurance is a wider package that usually includes hire and reward plus goods in transit and public liability. The two terms are often used as if they mean the same thing, but they do not.

One cover versus a full package

Hire and reward is the motor element that covers you to transport other people's goods for a fee. Without it, your insurer can refuse a claim for a delivery journey, and you could be driving without valid insurance for that work.

Courier insurance is the complete bundle most delivery drivers actually need. It builds hire and reward into a policy that also protects the parcels you carry and your liability to others.

Which one fits your work

If the client or platform you work for already covers the goods, or you only need the motor element, hire and reward on its own may be enough. Most paid couriers, though, find the broader package suits them better, especially if clients ask for proof of goods in transit and public liability.

Hire and reward is different from carrying your own goods for work. A tradesperson moving their own tools needs business use (carriage of own goods), not hire and reward. Hire and reward is only needed when you are paid to carry other people's items.

Getting courier insurance quotes

With Kompare you fill in a short form about your vehicle and the work you do. A specialist FCA-authorised broker from our panel then contacts you about quotes, whether that is hire and reward alone or a full courier package. Read how we work, or start on our courier insurance page.