The Driver’s Guide to Amazon Flex Insurance
As an Amazon Flex driver, it is important to have a comprehensive auto insurance policy.
Amazon provides some insurance coverage, but it’s limited.
Where does that leave you as a driver?
This guide will provide you with all the information you need to protect yourself from any liability, denial of coverage, or financial setbacks that occur due to an on-duty auto accident with Amazon Flex Insurance.
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Does Amazon Flex Provide Insurance?
Amazon provides limited insurance coverage to Flex drivers.
We’ll get into their policy more later, but basically, they will cover you if you get into an accident while delivering one of their packages.
However, there may be times when you’re “on the job” but don’t have any packages in your possession.
You need to fill these gaps with your insurance.
Here’s What Amazon Flex Insurance Covers
According to Amazon’s FAQ page, all drivers, aside from those in New York, are covered under Amazon’s Commercial Auto Insurance Policy.
The Amazon Flex auto policy is a very generous policy that includes the following coverage:
- Auto liability coverage for up to $1 million in damages to another person, vehicle, or property
- Uninsured or underinsured motorist coverage for up to $1 million in damages to you or your personal vehicle
So if you’re in a car accident while working and the person who caused the accident has no insurance, you are covered for any property damage or bodily injury.
Amazon commercial auto insurance includes comprehensive and collision coverage for up to $50,000. However, it’s contingent on whether you already have your policy with this included.
Amazon’s commercial auto policy will even cover you if you are at fault, but there is a $1000 deductible for at-fault car accidents.
It’s important to note that this insurance policy will only cover you while you are actively delivering an Amazon package (or picking one up) and only if you have your own auto insurance plan with comprehensive and collision coverage.
Their policy is intended to cover what your personal auto insurance won’t cover; the commercial aspect.
We’ll dive deeper into that in a minute.
Here’s What Amazon Flex Insurance Does Not Cover
Amazon Flex Delivery Auto Insurance does not cover any passengers in the vehicle with you at the time of the accident.
It also does not cover you if someone else is driving the vehicle.
As already mentioned, state laws prevent drivers in New York from being covered by Amazon’s policy.
You Still Need Personal Auto Insurance
After reading all the above information, it’s easy to recognize that you will still need your own personal auto insurance policy.
Amazon requires all Flex drivers to have one, and federal law requires every driver to have one.
Since Amazon will only cover you when you are actively delivering, you still need coverage for when you aren’t, whether this is in between deliveries or on your day off.
Think of it like you have two vehicles: one for personal use and one for delivering Amazon packages.
Even though it’s just one vehicle, you need two separate policies.
You’ll need insurance when using your personal vehicle, and Amazon will cover you when you’re delivering for them.
Should You Keep Your Personal Auto Insurance Personal?
When you purchase insurance, the insurance company will ask you if you use your vehicle for personal use, commuting, or business purposes.
How you answer this question will determine the auto insurance coverage and rate they offer you.
Most people only require personal coverage, but this isn’t true of delivery drivers, who must tell their insurer they use their car for business purposes.
Can I Get in Trouble if I Don’t Tell My Insurance Company I’m a Flex Driver?
If you fail to disclose that you are an Amazon Flex delivery driver and you use your vehicle for deliveries, you will save money — but is it worth it?
Your insurance company may void your insurance if they find out you use your vehicle to perform delivery services.
When personal insurance is voided, say goodbye to the insurance Amazon provides, as well.
Not only does this put you out of a job, but you could get into serious trouble; Failing to disclose that you work for Amazon Flex is considered insurance fraud.
Well, you are misrepresenting the facts of your policy. You did not disclose the true use of the vehicle.
As a delivery driver, you will be on the road a lot. This will change your expected annual mileage, which is a factor insurance companies use to determine your rate.
Not to mention, some car insurance policies flat out prohibit this type of use for your vehicle.
Further reading: Do Freelance Drivers Need Commercial Auto Insurance?
How Amazon Flex Drivers Can Find the Right Auto Insurance Policy
Traditionally, individuals who use their vehicles for commercial purposes had to purchase commercial car insurance. Usually, people purchase this type of insurance when they have a vehicle they use exclusively for commercial purposes.
Commercial car insurance is expensive, though. Adding this type of insurance to your personal coverage can increase your premium by hundreds of dollars per month.
When ridesharing and delivery apps started to get more popular, insurers saw a need for a new type of insurance policy that covered personal vehicles that were sometimes being used for commercial purposes.
Now, some auto insurance companies have an “add-on” option for rideshare and food delivery drivers.
However, not all insurance companies approve of every delivery platform.
To get the best possible delivery driver auto insurance prices, you need to find a policy that includes Amazon Flex as an approved platform for their add-on.
Remember, this policy must include comprehensive and collision for Amazon to cover you under theirs.
Many insurance providers are acquainted with the Amazon Flex Commercial Auto Policy and will help you find the best policy to pair with that.
If your insurance agent isn’t as aware of the program as they should be, inform them that Amazon provides their own policy and see if that will be enough to stay insured by them.
The Top 5 Amazon Flex Insurance Policies
Below are five well-known insurance companies that offer coverage for Amazon Flex drivers.
These companies also offer special policies that insure Amazon Flex drivers for work without the added cost of commercial coverage.
If you already have a policy with one of these companies, all you need to do is request that they modify your current policy to include the rideshare rider.
If you don’t currently have a policy with one of these providers, it’s time to collect some auto insurance quotes.
Allstate offers a special insurance policy called “Ride for Hire.”
This policy not only provides coverage when Amazon won’t; it offers deductible gap coverage for when you are at fault.
Even though Amazon’s deductible of $1000 isn’t too high, some delivery partners have deductibles of $2500 or more. Allstate’s Ride for Hire policy helps to pay for that.
They claim to offer these benefits for only pennies a day. How many pennies is dependent on several factors, including your driving record, your age, and your area of residence.
GEICO offers a hybrid auto policy that covers you whether you are delivering or not.
This policy is only slightly more expensive than personal auto insurance, so it won’t break the bank but still protects you when your personal or Amazon policy does not.
GEICO also offers plenty of driver discounts that you can take advantage of if you meet the qualifications.
Their policies come with plenty of perks, like roadside assistance, which will come in handy when you get a flat tire with a car full of packages.
You can’t leave the packages, so all you have to do is call roadside assistance and they will come to you.
Farmers offer a policy designed specifically for Uber, Lyft, and other rideshare drivers.
Just by reading their quick demonstration of how their policy can help, it’s obvious that they understand the unique needs of an Amazon Flex driver.
They are aware that you have a commercial policy offered by your delivery partner but that it is limited. This should give you confidence that their coverage will kick in when it’s supposed to.
Farmers Insurance also has some discounts available, such as a good driver discount. The better you drive, the more discounts you’ll be eligible for.
In the event of an accident on your way to the delivery block, Progressive’s rideshare insurance will help pay for any injuries or damages.
This company explains that this insurance is specifically for those who pick up passengers but that they will also cover drivers for DoorDash or UberEats in some states.
You’ll have to call their customer service phone number to check if this is available in your state.
If it is, you’ll get the benefits of commercial insurance that will cover any gap in coverage that Amazon’s commercial policy denies.
Progressive offers personal and business insurance in this one policy; you don’t need to pay multiple premiums.
They also offer a deductible reimbursement. If your deductible is only $500 on your personal auto insurance policy, Progressive will give you the extra $500 to pay for Amazon’s $1000 deductible.
Known for giving great rates to military members and their families, USAA also offers rideshare gap insurance coverage for freelance drivers.
If you are a member of USAA, you can add this to your existing policy and rest easy knowing that they will cover any liabilities or personal injury expenses not covered by Amazon.
This policy is available in every state except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina, and Virginia.
Before you jump in the driver’s seat and pick up your first Amazon delivery shipment, you need to double-check your personal auto insurance policy to see if you’re protected.
If not, shop around for the best auto insurance rates. This will ensure that you keep as much of your earnings as possible.
Then, you can zip around all over town, delivering packages with the peace of mind that you are armed with all the insurance coverage you need.
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