Do delivery drivers need extra insurance?
Delivery drivers in Ireland need extra insurance as standard, personal policies will usually only cover everyday domestic and leisure trips – and won’t cover you while you’re at work.
The level of cover you’ll need depends on the type of deliveries you make as part of your job, but Hire and Reward cover is the most common form of insurance for couriers and delivery drivers.
If you don’t have extra insurance, you won’t be covered if you’re involved in an accident while at work, and claims may be rejected.
It’s also a legal requirement to be insured while on the road, and without delivery insurance you’ll essentially be uninsured, and could receive a fine or penalty points.
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What does delivery driver insurance cover?
Delivery driver insurance offers more coverage than a regular car insurance policy, and covers:
- Damage or injury to third parties while delivering (always)
- Damage to your vehicle while delivering (with Hire and Reward cover)
- Fire and theft (optional)
- Add-ons and optional extras
This insurance takes extra mileage and time pressure for couriers into account, which can mean a higher risk of accidents.
What does it not cover?
Delivery insurance doesn’t cover you in every situation. Deliveries made outside of delivery hours or undeclared delivery work won’t be covered. Certain high-risk goods may also be excluded from your policy and may have to be added.
Unless specifically included, fire and theft may not be covered. Depending on the type of insurance cover, damage to your vehicle could also be excluded.
Who needs courier insurance in Ireland?
You need courier insurance if you deliver goods or passengers for payment, so that you’re protected when picking up or dropping off goods, or waiting for an order.
Courier insurance or delivery cover is necessary if you are:
- Working for a courier company
- Self-employed delivery workers
- Delivering goods for payment
- Delivering for an online food order and delivery company like Just Eat or Deliveroo
Who pays for delivery insurance
If you’re wondering if you have to pay for delivery insurance yourself, it entirely depends on the company you work for.
If you’re directly employed by a courier company, they often include employer policies such as fleet insurance which covers their drivers.
But if you’re in the gig economy, working for a fast food delivery business, employer insurance might not be enough.
For some food order and delivery businesses, you will need proof that you have Hire and Reward or fast food coverage even before you are employed – and you must pay for this yourself.
However, this may be treated as a business expense and can be tax-deductible for those who are self-employed or in the gig economy.
Cost of Delivery Driver Insurance in Ireland
The cost of delivery insurance in Ireland varies depending on the type of deliveries you carry out and the company you work for. Some employers cover you entirely, meaning you pay nothing.
But if you have to pay for insurance yourself, the cost of your premium will depend on:
- Experience and age
- What goods you deliver
- Location
- The value of your delivery vehicle
- If you opt for pay as you go delivery insurance
Pay As You Go Insurance for Part Time Delivery Drivers
Pay as you go insurance is an easy way for part time delivery drivers to ensure they’re covered without paying the same as full time workers.
Pay as you go cover is flexible – allowing you to take out insurance for a few hours or for a full year, depending on your needs. You can manage pay as you go insurance online, or over the phone.
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Types of Delivery Vehicles You Can Insure
The type of delivery vehicle you use will affect the type of cover you need. Delivery van insurance is common for those who work for couriers that transport larger goods, packages and parcels.
For smaller items and food, motorcycle courier insurance, especially if you have a scooter, will likely be less costly.
Delivery vehicles that can be insured include:
- Cars
Vans
Motorbikes, mopeds & scooters
Hire and Reward Insurance
Hire and Reward insurance is the most common form of delivery driver cover and is required for all delivery drivers.
Couriers delivering without specific cover or driving with only personal insurance are not properly insured without the right Hire and Reward or delivery cover.
Without extra insurance, you could be fined thousands of euro, have your vehicle seized by gardaí or receive penalty points.
If you’re a hail and ride driver, you’ll need to have Hire and Reward insurance specific to passenger transport under the Road Traffic Act.
Frequently asked questions
No, the contents of your delivery are usually not insured unless under standard hire and reward insurance policies. Your company will likely have goods in transit insurance cover to protect contents while they’re being transported.
Yes, if you’re self-employed you can claim tax back if you pay for your own delivery insurance as it’s considered to be an allowable business expense. If you work for a company, i.e. you’re an employee, you won’t be able to claim tax back but your company may reimburse you in some cases.
Yes, you’re covered if you’re waiting for an order if this is part of your job, you’re logged into the app system, and it’s within the work hours that are included in your insurance policy.
If you have a hire and reward delivery insurance policy, you will be covered even if you switch your delivery platform or start working for a different courier company. But if your insurance policy includes a named app or platform, you may need to update your details. Multi-platform policies allow you to switch between companies at your leisure.
If you’re involved in an accident while delivering goods without delivery insurance, any claims you make will likely be refused even if you have a standard personal policy. This means you’ll be liable to pay compensation yourself if you damage or injure another road user or pedestrian. You could also be prosecuted for not having adequate insurance or receive a fine.
Passengers are usually not covered by standard hire and reward insurance. If you carry people in your vehicle for money, you need a special licence and insurance to be fully covered.
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