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 (£39–£74/week), 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 Damage & Excess Protection (£25/week) cuts the moped excess from £1,000 to £250, 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 a refundable 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.