Does pay-as-you-go cover build a no-claims bonus?

Not usually in the same way as annual cover. If building a no-claims discount matters to you, an annual policy is often the better route.

Can I switch from pay-as-you-go to annual later?

Yes. Many couriers start on flexible cover and move to an annual policy once their hours become regular.

Is pay-as-you-go cover valid the moment I switch it on?

Cover typically starts when you activate it for a session, but check the activation time and any minimum period in the policy.

Courier

Pay-as-you-go vs annual courier insurance: which is better?

Pay-as-you-go courier cover suits part-timers who pay only for hours worked; annual cover suits regular drivers. Here is how to weigh them up.

Pay-as-you-go courier insurance suits part-time or occasional couriers who want to pay only for the hours they work. Annual courier insurance usually works out better for full-time drivers who deliver regularly. Which is better depends on how you work.

Matching cover to how you work

The right choice depends on how many hours you spend delivering. Pay-as-you-go hire and reward lets you switch cover on by the hour or day, so you are not paying for delivery cover when you are not working. Annual courier insurance runs continuously for the year.

Part-time, weekend or seasonal couriers may find pay-as-you-go costs less overall.
Full-time drivers usually find annual cover works out cheaper per hour worked.
Annual policies can offer wider extras such as breakdown cover, and help build a no-claims record.

Points to weigh up

	Pay-as-you-go	Annual
Best suited to	Occasional or variable hours	Regular, most-days delivery
How you pay	Per hour, shift or day	Yearly, or monthly instalments
No-claims record	Not usually built in the same way	Usually builds over time
Admin	Switch on each time you work	Set up once a year

If your hours vary from week to week, flexible cover avoids paying for idle days. If you deliver most days, an annual policy gives continuous protection and avoids the risk of forgetting to switch cover on.

Pay-as-you-go products work in different ways, so check how any product you are considering handles your personal driving, and what happens if you forget to switch it on, before you buy.

Getting courier insurance quotes

With Kompare you fill in a short form about your vehicle and how often you deliver. A specialist FCA-authorised broker from our panel then contacts you about courier insurance quotes. Read how we work, or start on our courier insurance page.