Is Pay As You Go Motorcycle Insurance the Future for Delivery Riders?
If you’ve ever bought motorcycle insurance (which I’m hoping you have) you’ll know the system is painful and frustrating. The process leaves you with the sense your eyes are about to bleed and that you have to ride around your own house to make it worth it. It’s something we would always consider putting some research into, and it makes up a major part of our library.
This is the situation I’ve had in the past and I’m sure you may have too; Winter hits and your motorbike gets wrapped up warm and forgotten about for a week. A week then quickly becomes a month and before you know it you start to get that deep sense of guilt that you haven’t taken your toy out for a walk in far too long. Your insurance renewal comes along and you feel almost cheated. Why did you pay so much to have your pride and joy if you’re not even going to ride it?! This is why deciding which bike is right for you is so crucial.
In the delivery industry this is also a huge issue. Two of the best things about delivery jobs are; They offer huge potential for flexibility and you can work and ride off just a CBT. However the need for expensive insurance can mean the hours aren’t flexible at all, as the costs are too high. Getting a CBT licence is all about ease so the insurance process needs to be easy too.. This is where we meet the potential future for insurance. Companies like Zego have created a “pay as you go” insurance system. Zego was created by former Deliveroo directors, Zego is a system where you pay per hour to use your motorbike for work.
How does pay as you go motorcycle insurance work?
You only pay for the hours you’re working. This means you just book in when you want to work, and you’ll be covered at an hourly rate. You’ll be covered under third party insurance for the full period that you’re working. If something does happen to your motorcycle, you can just give the company a call and make a claim. Zego even offer an app which means you can view, manage and set up your policy and view your digital policy documents at any point.
It’s great if you just want to use your scooter for work. You don’t have to tie yourself down with an expensive insurance cover. You can just use your scooter with only a CBT as a tool for working and then park it up once you’re finished. It fills the void we currently have for delivery riders who ride as a career.
Of course, there are definite downsides..
What are the downsides for delivery riders?
You have to be organised. As you’re charged by the hour, you need to be accountable. You need to make sure you know when you’re working at all times. For Uber Eats and Deliveroo – drivers are charged by the minute after their first full hour. This ultimately means you’ll have to keep the insurance in the back of your mind.
As with a lot of modern start-ups, the system for a lot of companies is very app focused. Most of the places that offer this pay as you go system are based around “app chat” customer service. This is great if you are always plugged in. But that isn’t always possible, especially if you’re in an accident! However, companies such as Zego offer an in-house customer service team on the phones to be at your aid. In an event of an accident, the app instructs you to call Zego’s customer service hotline, therefore connecting to a real person straight away.
You need every day scooter insurance. At the moment this is a major downside as you’ll need general insurance cover. However this product is focused on delivery riders, so as long as you don’t ride your scooter outside of working hours, you can get a very basic and cheap cover.
How much does it cost to insure your motorbike?
Zego offer an upfront cost of 55p per hour. However, this can add up so bare in mind longer term policies like Zego's 30-day / annual policy to save money in the long run. So all in all it is pretty cheap. But keep in mind this is on top of a basic insurance.
What do we think
It might not be for everyone but the pay as you go system definitely fills a gap in the market. If you love riding and riding in your spare time is your thing, this isn’t for you. But if you took a job as a delivery rider and that’s why you drive; this is perfect. Not all of us ride for fun so there needs to be a modern insurance cover that reflects this. The great news is, being a delivery rider is better than ever. Your insurance will be cheaper than you thought and thanks to our partner schools, booking a CBT is cheaper too!