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Amazon Flex Insurance for Delivery Drivers

Insurance Requirements for Amazon Drivers

Amazon is considered one of the best companies to work for. With over 500,000 employees worldwide, the Seattle-based company offers excellent benefits with an above-average pay scale compared to other companies.

Amazon inspires many job seekers to pursue careers within their company as warehouse team members or package delivery drivers. If you are planning to join Amazon as a driver using your own car, you will need to get Amazon Flex car insurance to cover you.

Why Do I Need Amazon Flex Insurance?

Amazon Flex insurance, also called Amazon Package Delivery Commercial Auto Insurance, will cover you while you are working for Amazon as a delivery driver. You will still need to have your own personal auto insurance to guarantee that you have enough coverage. In other words, when you are driving on your own time and not on the clock for Amazon, your personal insurance is active. But when you are delivering, picking up, or returning a package for Amazon, then the Amazon Flex insurance is active.

Amazon Flex Insurance Coverage

The Amazon Flex commercial car insurance policy provides generous comprehensive coverage for its drivers. It includes:

  • Auto Liability Coverage – up to $1 million per accident. This coverage applies if the accident is your fault and your actions caused damage to the other party’s car or property.
  • Uninsured/Underinsured Motorist Coverage – up to $1 million per accident. This applies if the other driver caused the accident and doesn’t have insurance. It will cover damages to your car and any injury to you or occupants in your vehicle.
  • Contingent Comprehensive and Collision Coverage – Up to $50K per accident. This covers physical damage to your vehicle. However, you should also have comprehensive or collision on your own personal policy for Amazon Flex to cover you. There is a $1000 deductible for at-fault accidents.

What It Doesn’t Cover

The Amazon Flex insurance policy may be substantial, but it doesn’t cover everything. Below are a few things it doesn’t include:

  • Medical Payments – Since you are considered an independent contractor, you are responsible for your own medical treatment. You would need your own medical insurance to cover your injuries if you were hurt in a car accident while making deliveries.
  • Towing/Rental Cars –The policy doesn’t provide coverage for roadside assistance such as towing or rental cars. It is a good idea to check with your own insurance for roadside assistance coverage.
  • Mechanical Failure – If your car died on the side of the road due to a mechanical failure while delivering for Amazon, you are on your own. Amazon will not cover your vehicle, so it’s essential to keep your car well maintained.

Amazon Flex Can Void Your Personal Auto Insurance

Since you are combining two vehicle insurance policies, it’s crucial to find out if your own personal car insurance policy is compatible with Amazon Flex. It’s possible you could be voiding your personal car insurance policy by having Amazon Flex.

Why Your Personal Auto Insurance Can Become Void

The first reason could be a possible misrepresentation of facts. When signing up for auto insurance, one of the questions they usually ask is whether your car is used mainly for personal or business. If you indicate personal, but end up driving for Amazon Flex, you could be violating the terms of the personal car insurance policy. All insurance companies have a clause stating that any misrepresentation about your vehicle will void and terminate the policy.

The second reason could be that your auto insurance policy may forbid you from doing any kind of courier work even if you have an additional commercial insurance policy. Their rationale is that if your personal car is used for delivery services, it is considered a commercial policy, so the personal policy becomes void.

A Tricky Situation

Keep in mind that if your personal car insurance policy becomes void because you have Amazon Flex, it could mean that your Amazon Flex may become voided as well. That’s because Amazon Flex requires drivers to have their own personal auto insurance.

The Takeaway

With so many independent contractor work and delivery services flourishing, some grey areas will need to be worked out. Make sure to call your auto insurer to verify that your policy will still be valid if you have Amazon Flex. Some insurance companies will allow you to have Amazon Flex under your personal policy, so it’s essential that you check with your auto insurance provider.

Watch YouTube Video: Step by Step Amazon Flex Driver Tutorial. This video provides a simple tutorial for new Amazon Flex drivers.

Sacramento Car Accident Lawyer

I’m Ed Smith, a Sacramento car accident lawyer. If you or someone you know has been injured in a traumatic accident, you will need the insights of an experienced injury lawyer. Call me for free, friendly and compassionate legal advice at (916) 921-6400 or (800) 404-5400. You can also contact me online.

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