Electric moped insurance for delivery in London: the complete guide
Hire-and-reward cover, what it costs, and why standard insurance won’t do for food delivery.
What insurance do I need to deliver food on a moped in London?
To deliver food (or anything else) for payment on a moped in London you legally need hire-and-reward insurance — a class of cover that standard private or social/domestic/pleasure policies do not provide. Without it you are uninsured the moment you accept a paid delivery, which can void claims, lead to prosecution and see the vehicle seized. Hire-and-reward is mandatory for every platform: Uber Eats, Deliveroo, Just Eat, Stuart and Relay.
Buying hire-and-reward cover yourself typically costs upwards of £1,000 a year for a delivery moped in London, on top of the vehicle. Renting from a provider like Otto Scooter bundles fully certified hire-and-reward insurance into the weekly price (from £49–£79/week, no deposit), so you are covered from the moment you collect the bike — with GPS, servicing and breakdown replacement included too.
Why standard insurance isn’t enough
Most riders are surprised to learn that ordinary moped insurance — even comprehensive — excludes carrying goods for reward. The instant you take a paid food delivery, a social/domestic/pleasure or commuting policy stops covering you. Insurers treat delivery as a materially higher risk (more hours, more stop-start riding, more time in traffic), so it needs its own class: hire-and-reward.
Riding uninsured for delivery isn’t a grey area. It’s an offence that can mean a fine, points, the vehicle impounded and a refused claim if you have an accident — leaving you personally liable for damage and injury.
What hire-and-reward actually covers
Hire-and-reward provides at least third-party cover for delivery riding — damage and injury you cause to others while working. Better policies add theft and damage cover for the bike itself. With Otto, third-party hire-and-reward is included on every rental, optional theft and damage cover is available on top, and every bike carries a GPS tracker with theft claims handled in-house.
It also covers you across platforms: one Otto policy is valid whether you’re on Uber Eats, Deliveroo, Just Eat, Stuart or Relay, so you can multi-app without arranging separate cover.
Buy your own, or rent it bundled?
If you own a moped, you must source hire-and-reward yourself — shop around, expect £1,000+ a year in London, and budget separately for servicing, repairs, MOT and tyres. If you rent, all of that is bundled: Otto’s weekly price includes the insurance, free servicing, breakdown replacement and GPS, with no deposit and no credit check.
For most riders the rental route is both cheaper once everything’s added up and far less hassle — and our e-bikes (no licence, no CBT) come with the same delivery cover.