With the rise of fast food delivery services such as Uber Eats, Deliveroo, Just Eat and more, what kind of insurance do you need while working using your personal vehicle in this industry? Do you need business car insurance, and is there a special type of insurance available for this work? We explore all of these questions in this article.
What Is Fast Food Delivery Insurance and Is It Compulsory?
During the pandemic, restaurants were forced to close their doors unless they operated a takeaway or delivery service. This of course caused an increase in the number of restaurants turning to delivery services and hiring new drivers – and the public’s hunger for fast food delivery is outlasting lockdowns. Uber Eats, Just Eat and Deliveroo are just a few well-known companies that provide delivery services for restaurants, and as such, they require delivery drivers to have their own food delivery insurance.
Fast food delivery insurance is a form of business insurance designed specifically for the growing food delivery sector in the UK. So if you are using your own car to deliver fast food takeaway orders, perhaps on a part-time delivery basis at the weekend, you’ll need the right type of insurance for the job.
It is important to note that your standard car insurance policy will not cover you for delivering food from restaurants or takeaways to customers for payment. To be able to do that within the law, you will need to ensure that you have fast food delivery insurance, which is a form of hire and reward insurance. Hire and reward simply means delivering goods from A to B, in exchange for payment. It’s a good idea to discuss your needs with your existing insurer, as they may be able to provide this cover for you.
A standard domestic policy covers your personal driving, like driving to the shops or visiting a friend. If you are delivering food in exchange for payment, it is important to check the terms of your insurance to ensure you are covered for this, as all policies differ slightly.
What Kind Of Insurance Do I Need For A Job As A Delivery Driver?
A basic level of business insurance is called ‘Class A(1) Business Use insurance’. This type of cover is generally used by people in office-based jobs to allow them to travel to meetings and for other infrequent, ad-hoc journeys. While better for businesses that require social and domestic car insurance, it is still insufficient for use as a delivery driver.
Class C(3) business use car insurance, or commercial car insurance, provides an increased level of insurance and forms the basis for fast food delivery insurance. This type of policy allows you to use your vehicle, whether bike, car or van, fully for work purposes.
Therefore, it is commercial car insurance or more specific food delivery insurance that you should look for as a delivery driver, depending on the company you work for and your mode of transport. Check with your current insurer to see if they can provide this cover for you.
Is Fast Food Delivery Car Insurance Expensive?
It is often the case that a food delivery car insurance policy will be more costly than a “regular” car insurance policy because you require a different level of cover.
However, not insuring your delivery car correctly could be much more costly. If you’re involved in an accident or pulled over by the police and you do not have the appropriate level of cover when delivering food, you could be prosecuted or have your car seized.
As with most policies, the cost of your premium often depends upon several factors, some related to your vehicle and driving history and others related to the details of the actual delivery service. These are some of the factors that may influence the cost of a food delivery car insurance policy:
- Time pressure: Drivers delivering fast food are likely to be doing more driving under time pressure situations and this pressure can lead to more accidents.
- Driving hours: As a delivery driver, you will often be driving in darkness and at later hours, which insurers may deem to be higher risk.
- Your driving record and history: As this is unique to each individual, the cost of a premium is also going to vary.
- How much excess you’re prepared to pay: If you can pay a higher excess, you may reduce the cost of your premium.
- The type of car you want to insure.
- Where your car will be kept overnight.
To find out more about how your car insurance is calculated, take a look at our recent article.
It can be difficult to understand what policy you need to give you complete peace of mind on the road, whether you are a business owner or a delivery driver. But you must have the right policy for your unique circumstances.
Whatever type of cover you need, at Be Wiser we can help you find the right insurance policy. Start your search for the perfect policy with us!