Higher and Reward is a class of insurance that allows you to legally carry other persons or their goods in exchange for payment. This type of cover is essential for taxi drivers, furniture movers, couriers, and hauliers.

Having Hire and Reward Insurance cover is critical for people who work in the transportation industry. Without it, you won’t be covered in the event of a claim should you be involved in an accident.  This is a legal requirement and you can be charged with an offense if you don’t  have Hire and Reward insurance and you are working as a haulier or taxi driver.

Hire and Reward Insurance will no doubt cost more than the most basic insurance policies, because insurance companies, unfortunately, view those that use their cars for business are at greater risk than those who use theirs for pleasure. It’s a known fact that all too often insurance providers just do not cater to folks who wish to insure their vehicle for Hire and Reward.  

What type of cover is available when it comes to Hire and Reward?

As with most basic car insurance policies, Third Party Only, Third Party Fire and Theft, and the Comprehensive cover is available. In addition, Public Liability can be added to Hire and Reward insurance policies. This is becoming increasingly popular with taxi drivers here in the UK who wish to reduce their liability.  

What is it that affects premium costs?

The hire and reward insurance cost tends to be a bit more expensive than standard insurance policies. This is simply because you are not only insuring your own vehicle but others along with their belongings. Premium costs will, of course, depend on the individual insurance provider. They will take several factors into consideration.

The actual size of your vehicle    It’s a fact that the larger the vehicle, (car or truck) the greater of a hazard it is on the road, and thus the greater chance of it being involved in an accident. In addition, larger vehicles are no doubt able to carry more goods. This, unfortunately, makes them a target for thieves

The type of goods     The more costly or valuable the goods are that you transport, the more they will be replaced in something goes wrong.  Expensive items are vulnerable to theft and this is of course reflected in higher premiums.

Mileage    Hire and Reward policyholders are required to provide to the insurer their expected annual mileage. This, unfortunately, follows the idea that the more miles you actually drive on the road, the greater is the potential risk. Providers also take into consideration whether you will be driving on heavily congested roads, and the times of days you will be driving.

Drivers    Insurance companies need to determine the risk of the actual driver that will be transporting the goods. If a driver is 40 years or above of age, and have several years of experience. Along with a small claims history, they are considered low risk and will, therefore, pay less for Hire and Reward cover.