Amazon Flex Car Insurance – What You Should Know
If you are interested in driving for Amazon Flex as a delivery driver, you need to be aware of the insurance requirements that come with the job. As a driver, your insurance will have to meet certain criteria and this can differ depending on the location in which you will be delivering.
You also should be aware that Amazon Flex car insurance is provided to you when you are on the job, and this goes on top of the required coverage that you have to have.
In this short post I will be going over everything you need to know when it comes to working as a Flex driver and the insurance that you need, as well as the insurance that you are given.
Do You Need Special Insurance?
When using your vehicle for commercial purposes, like ridesharing, delivery, etc., most personal insurance policies will not cover the driver when they are on the job. However, they will cover the driver when they are not on the job.
So what bridges the gap? Since most personal insurance policies will not cover you when you are working for Amazon Flex, what happens if you get into a wreck?
Are you going to have to pay extra money to get commercial insurance?
Luckily, most Amazon Flex drivers are not going to need any special insurance like commercial insurance. Your regular old personal car insurance will cover you fine. The reason for this is that Amazon Flex actually provides you with their own form of commercial insurance when you are working for them.
So your personal car insurance will be active when you are not on the job and Amazon Flex’s car insurance will kick into action when you are on the job.
Exception To This: In New York City Amazon Flex drivers are required to have commercial insurance of their own. The Amazon Flex car insurance will not be available to them.
You are required to keep personal insurance on your vehicle that is compliant with local and state laws. The minimum requirements of auto insurance vary depending on where you live.
There are 4 main coverage categories that might be included in your state’s requirements. These include…
- Bodily Injury Liability – Coverage of injuries to other people involved
- Property Damage Liability – Coverage of property damage
- Personal Injury Protection – Coverage of personal injuries (usually no-fault)
- Uninsured/Underinsured Motorist Protection – Coverage when another at-fault driver doesn’t have liability insurance
The minimum requirements for where you live are usually expressed with a set of numbers like 20/40/15. This means that there is a $20,000 coverage per person for injuries, $40,000 per accident for injuries, and $15,00 per accident for property damage.
I am not going to go through each state and list the minimum auto insurance requirements. There is a good article on thebalance.com (can read it here) that lists out the requirements for every state in the US.
Amazon Flex Car Insurance
Out of all the rideshare and delivery services that require you to drive your own car (Ex: Uber, Lyft, DoorDash, etc), Amazon Flex has one of the best insurance policies out there to cover you as a driver.
It provides 3 types of coverage which include Commercial Auto Liability, Uninsured/Underinsured Motorist Protection, and Contingent Comprehensive & Collision Coverage.
Commercial Auto Liability
- Up to $1 million in coverage/incident
- Covers damage to third parties vehicle(s) & person(s)
Uninsured/Underinsured Motorist Protection
- Up to$1 million in coverage/incident
- Covers injuries to you and passengers as well as damage to your vehicle
- Applies when another driver is at fault and doesn’t have adequate insurance
Contingent Comprehensive & Collision Coverage
- Up to $50,000/incident
- Covers damage to your vehicle
- Includes $1,000 deductible
- Must have comprehensive & collision coverage on your personal policy for this to apply
When Does This Amazon’s Insurance Apply?
As I’ve mentioned, this commercial insurance that they will give you as a Flex driver applies when you are on the job.
This means it will cover you and become your primary insurance when you: are on route to deliver a package, heading back to the warehouse to load up, or when you are on your way to return undelivered packages.
So it will not apply before you start working when you are driving to work, nor will it apply when you are finished and driving from work.
Something You Should Know
Although Amazon Flex only requires its drivers to have personal auto insurance coverage, there are situations where this will not work out.
Many insurance companies will refuse to cover you if they find out that you are working as a rideshare driver, or delivery on demand driver. Even though Amazon will cover you when you are on the job, there still are problems with it all.
Luckily, many insurance companies are coming out with special “rideshare insurance” that is specifically for these types of jobs. Geico, AllState, Farmers, Progressive, State Farm… they all have rideshare insurance now (not available in all areas). This insurance is more expensive than personal coverage and usually ranges anywhere from $10 – $30 more per month. But its better than paying for commercial insurance.
If I were you, I would call my insurance company and if the personal coverage is good enough, if not you will have to purchase rideshare insurance. Because you are an independent contractor it is up to you to take care of things like this.
What To Do When You Get Into An Accident
I guess I should say “if” you get into an accident. I don’t want to jinx you.
What you should do is begin with all the things you would normally do… provide your insurance, report the accident to your insurance provider, etc.
The second thing you need to do is report the accident to Amazon Flex support ASAP. I would suggest either contacting them by phone or by their support email: email@example.com. You should also provide any third parties with your Amazon Flex insurance policy.
Is there anything that you have questions, comments, or concerns on??? Leave a reply in the comment section below and I’ll get back to you within 24 hours 🙂