What is Top Up Hire & Reward Insurance?
Hire & Reward Insurance is a specialist cover required if you are paid to carry goods or passengers, for example, couriers, food delivery drivers or taxi services.
Top Up Hire & Reward cover allows people who have basic motor insurance for social, domestic and pleasure usage, to benefit from temporary Hire & Reward Insurance for their cars or vans so that they can work as delivery drivers.
Some companies now offer ‘Top Up’ Hire & Reward, often promoted as a cheaper alternative to taking out a full annual policy.
It’s inexpensive and easily accessible online and enables people who want to make extra money to do delivery work.
But while this may sound attractive, there are several important reasons that you, as a driver, should be cautious.
What is the danger of Top Up Hire & Reward Insurance?
While Top Up Hire & Reward Insurance may sound great, if the insurer of your ‘main’ policy is not made aware that you have bought ‘Top Up’ cover, you might find yourself unable to make a claim on your main policy or find your policy is cancelled.
This could lead to you losing your no claims bonus for that year and leave you needing to find an alternative, possibly more expensive policy.
This is because Top Up policies often provide:
Limited Coverage
Top Up policies often only cover Hire & Reward use during specific hours or for specific jobs.
Top Up Insurance often only applies when you’re logged in to the app you work for, so if you forget to switch it on, you could be left uninsured.
Outside those hours, you may only be covered by your standard social, domestic, and commuting insurance, meaning if you do any paid work without activating the Top Up, you could be uninsured.
Driving without Hire & Reward Insurance can lead to fines, points on your licence, or even losing your right to work, as stated on the UK government website.
Compatibility Issues
Not all private car insurers allow Top Up Hire & Reward cover. Using it with a standard car policy could breach your terms and conditions, invalidating the underlying insurance.
If your main insurer refuses to recognise the Top Up, any claim might be rejected altogether.
Claims Complications
Accidents involving multiple policies (your main vehicle insurance plus the Top Up) can cause disputes about who pays what.
This can delay claims being settled and may leave you without a vehicle or income for longer.
What can you do to avoid problems with Top Up Hire & Reward Insurance?
To avoid running into difficulties, you must contact your existing insurer and inform them that you intend to start delivery work BEFORE you buy a Top Up.
If your insurer doesn’t allow you to continue your cover with them, you can contact BCD for an annual Hire & Reward car or van policy, which will ensure you are covered accurately and appropriately.
Keep your insurer updated
If you do take out cover with us, you must let us know of any changes which may affect your cover. These include:
- If you change your address or the address of where your vehicle is normally kept.
- If you or anyone covered by the policy stops or changes jobs or starts a new job including any part-time work.
- If yours or any of the insured drivers’ driving licence is revoked either temporarily or permanently, or the status of the driving licence has changed, for example, if you or any insured driver has passed their driving test.
How BCD can help
If you’re looking for reliable insurance, you’re in the right place.
We’re trusted by thousands of drivers like you, to find the appropriate Courier Insurance to protect your livelihood.
Our experience in your industry means you can benefit from our expertise in finding you insurance that won’t let you down.