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    Hire and reward insurance explained

    Factual guidanceFresh — reviewed 19 April 2026Sources: 7Next review: 18 July 2026

    What it is

    Hire and reward is the insurance category covering vehicles used to carry passengers or goods for payment. In the UK, every vehicle on a public road needs at least third party cover that meets Part VI of the Road Traffic Act 1988. If you carry passengers for fare or deliver parcels for a fee, standard social, domestic and pleasure (SDP) or commuting cover does not count. You need specific hire and reward cover. Driving without valid cover is a criminal offence under section 143 of the Road Traffic Act 1988.

    How it applies to you

    Uber, Bolt, FREE NOW and Addison Lee are private hire operators, so drivers need private hire (PHV) insurance, a form of hire and reward. Uber Eats, Deliveroo, Just Eat, Stuart, Amazon Flex and other courier work need courier or goods-in-transit hire and reward cover. One fare a week still counts. In London, TfL will not license a vehicle as a PHV without proof of hire and reward cover, and TfL plus the operators carry out spot checks. Zego, INSHUR, Acorn/Haven, Freeway, Patons, Walsingham, Clegg Gifford and DCL make up most of the Uber-approved London panel. Zego advertises 30-day private hire policies from about £169.59 and annual from about £1,977.90 in 2025-26, with 10% of customers paying this or less in the six months before 23 July 2025. Pricing varies hugely by age, postcode, car and no-claims history. A 23 year old new driver in London on a Toyota Prius with no NCD sits at the top of the range. Get caught driving Uber on SDP only and the penalties are real: a £300 fixed fine, six penalty points, an IN10 endorsement, possible vehicle seizure and prosecution. Your insurer can void the policy, your own damage is not paid, the Motor Insurers' Bureau may compensate injured third parties and then chase you personally. Uber will deactivate you. TfL or your local council can treat it as a fitness breach. Uber's Partner Protection with Allianz/AXA pays accident and sickness benefits but is not a substitute for motor insurance required by UK law.

    Action steps

    • Check your insurance category before you log in. SDP is not enough.
    • Use an Uber-approved insurer if you drive in London so documents check in Instadoc.
    • Keep comprehensive cover where possible. Third-party-only leaves you paying for your own car.
    • If you stop doing gig work, switch back to SDP to save money, do not leave PHV running.
    • Budget £1,500 to £3,000 a year for private hire insurance as a working figure.

    What it is

    Hire and reward is the insurance category covering vehicles used to carry passengers or goods for payment. In the UK, every vehicle on a public road needs at least third party cover that meets Part VI of the Road Traffic Act 1988. If you carry passengers for fare or deliver parcels for a fee, standard social, domestic and pleasure (SDP) or commuting cover does not count. You need specific hire and reward cover. Driving without valid cover is a criminal offence under section 143 of the Road Traffic Act 1988.

    How it applies to gig workers

    Uber, Bolt, FREE NOW and Addison Lee are private hire operators, so drivers need private hire (PHV) insurance, a form of hire and reward. Uber Eats, Deliveroo, Just Eat, Stuart, Amazon Flex and other courier work need courier or goods-in-transit hire and reward cover. One fare a week still counts. In London, TfL will not license a vehicle as a PHV without proof of hire and reward cover, and TfL plus the operators carry out spot checks.

    Zego, INSHUR, Acorn/Haven, Freeway, Patons, Walsingham, Clegg Gifford and DCL make up most of the Uber-approved London panel. Zego advertises 30-day private hire policies from about £169.59 and annual from about £1,977.90 in 2025-26, with 10% of customers paying this or less in the six months before 23 July 2025. Pricing varies hugely by age, postcode, car and no-claims history. A 23 year old new driver in London on a Toyota Prius with no NCD sits at the top of the range.

    Get caught driving Uber on SDP only and the penalties are real: a £300 fixed fine, six penalty points, an IN10 endorsement, possible vehicle seizure and prosecution. Your insurer can void the policy, your own damage is not paid, the Motor Insurers' Bureau may compensate injured third parties and then chase you personally. Uber will deactivate you. TfL or your local council can treat it as a fitness breach. Uber's Partner Protection with Allianz/AXA pays accident and sickness benefits but is not a substitute for motor insurance required by UK law.

    What you should do about it

    • Check your insurance category before you log in. SDP is not enough.
    • Use an Uber-approved insurer if you drive in London so documents check in Instadoc.
    • Keep comprehensive cover where possible. Third-party-only leaves you paying for your own car.
    • If you stop doing gig work, switch back to SDP to save money, do not leave PHV running.
    • Budget £1,500 to £3,000 a year for private hire insurance as a working figure.

    Last reviewed

    19 April 2026

    Internal links this page emits (3-5):

    Primary source used:

    • Research/S4-insurance/4.1-insurance-for-uber-private-hire.md

    Before you leave

    Sources

    • Road Traffic Act 1988 Part VI
    • Road Traffic Act 1988 section 143
    • Motor Vehicles (Compulsory Insurance) Regulations 1992
    • Motor Insurers Bureau uninsured drivers agreement
    • FCA hire and reward insurance guidance
    • Zego private hire insurance pricing July 2025
    • TfL private hire vehicle insurance requirements
    Fresh — reviewed 19 April 2026