Shocked by the cost of food delivery insurance?
If you deliver food using a car, van, motorbike or scooter you probably know by now that extra insurance (called 'courier' insurance) is necessary. Have you also found that it can be hard to get hold of and expensive? Don't worry, help is at hand.
Isn't there a better way of buying this insurance?
Many people think that buying insurance via a price comparison site is the cheapest and most efficient way, eliminating the middle men. The truth may be very different.
Most actual insurers - the ones who issue the policies - only deal through brokers. The vast majority of businesses advertising insurance, including those on comparison sites, are brokers. Once, you would ring them up and they would get quotes for you. The broker took a commission for passing the enquiry on to the insurer.
Nowadays you may go on a comparison site, and you get those quotes from the brokers automatically. However the comparison site almost invariably charges them for this; enough to not only give them a profit but also cover their massive overheads, including the costs of seemingly non stop TV, radio and search engine advertising.
So, when you buy a policy via a price comparison site you are also indirectly paying for the profits and overheads of that site, as well as the broker charges.
There is a different way
Many web sites on the Internet, that sell food delivery driver insurance, are run by brokers who work hard to find the best prices from the insurers they deal with. Unfortunately many of them deal with just a single insurer; or at best just a handful. Why not have a choice of multiple brokers instead?
You could use the advantages of both the broker system, and technology. Your enquiry goes to not one broker but an entire panel of them! All you need to do is fill in a short form giving a few details about what you are looking for, and a broker from the panel will contact you with quotes for you to compare. Simple.
This means that you could not only benefit from expert help at finding you the best food delivery policies to suit your needs, but also advice about cutting the cost, or finding better benefits, for any other insurance needs to may have. so why delay! It will only take a moment: click here for quotes.
Why are so many insurers shy of fast food delivery insurance?
When food is freshly prepared it is at it's best. The pressure is on a delivery driver to get it delivered to the customer as quickly as possible.
Also; often, the more food a driver hands over, the greater the earnings, particularly tips.
This means that that there is a temptation to drive a car or ride a scooter a bit faster than usual; sometimes in bad weather, often at night, and occasionally in unfamiliar neighbourhoods. It is not surprising that the risk of accident amongst those delivering food is higher than normal, and risk is something insurance companies don't like so many refuse to cover it. However you can soon get quotes here!
Can I pay monthly; or pay-as-you-go?
Some insurers will accept that but certainly not all, so you might cut down your choice of offers that you can compare considerably, and so may end up with much higher premiums.
Remember that if you do pay monthly you almost invariably have to pay interst and/or management charges on top of the premium, so buying a yearly policy is usually the cheapest option.
What kind of insurance can I buy?
You have a lot of choice but much depends on your budget. You could probably opt for:
- Third party only: this is the most basic level and only pays for damage to other people's injuries and/or belongings if you are held responsible for an accident. It will not reimburse you for damage to your own vehicle. Despite this it is not always the cheapest because 3rd party only drivers tend to have a higher accident rate so be careful about buying it!
- Third party fire and theft: This should reimburse you (subject to any policy excesses) if your vehicle is stolen or burned. It will not usually cover any goods you carry.
- Comprehensive: this should reimburse you for accidental damage to your own car, again subject to any policy excesses. Again, also, any goods you carry may not be covered but there might be other benefits included, such as a courtesy car, breakdown cover, or legal representation if you are sued over an accident.
You may also opt for goods in transit insurance which could cover you for loss, damage or theft of anything you are carrying. This may not be worthwhile if you are just carrying a few pizzas but if you deliver expensive speciality meals it may be worth considering.
What does courier insurance cost?
Like any other vehicle insurance, it can very considerable according to many factors such as the type of vehicle you use, your driving record, the products you deliver, the area you work in, etc etc etc. This is why it is so important to compare quotes.
Is 'courier' insurance the same as 'hire or reward' cover?
No. They are similar, but there are certain differences.
Both types of insurance cover a driver for transporting goods for other people. Haulage drivers, however, usually drive from one address, where they collect goods, to another, where they deliver it.
On the other hand couriers, including fast food delivery drivers, pick goods up from (usually) one address but they can then make multiple deliveries. This involves higher risks of accidents and so insurance companies treat them differently.
This means that a hire and reward policy is unlikely to cover a fast food delivery driver; and why there are special policies designed for them.
How to get quotes
- Simple. You just fill in a short form, giving some details of what you are looking for.
- You will then soon receive quotations to compare!
Prudent Plus Limited are members of the British Insurance Brokers Association, Membership number 007759.