Amazon Flex Driver Commercial Insurance Coverage
When on-demand workers use their car for commercial purposes, their personal auto coverage won’t cover them if they get into an accident while they are working. Personal auto coverage do not cover for when the car is used for commercial purposes, such as rideshare and delivery.
In most states, rideshare drivers are able to get the proper personal auto insurance that will cover them during personal usage but also allow drivers to work on Uber and Lyft. These policies won’t work when they are online with any rideshare company but will cover drivers when they are not working. Rideshare drivers can get commercial insurance on their own, but it is often very costly. Rideshare drivers need to get livery insurance that allows them to transport passengers for money, which is more expensive than just commercial insurance. However, livery insurance is not needed because Uber and Lyft provides that type of insurance when rideshare drivers are signed onto their platform.
Commercial insurance typically covers vehicles that are used for business purposes, but not for transporting passengers for money. The most common use for commercial insurance is for delivery vehicles or work trucks. While commercial insurance is much more affordable than livery insurance, commercial insurance is often too expensive for many delivery drivers because of the low hourly income we get from these delivery services.
Amazon Flex Driver Commercial Insurance Coverage
Many on-demand delivery companies provide their drivers with commercial insurance when they are working on their platform. From the research I have done, Amazon Flex seems to have a very generous insurance policy. Here are the key information from the policy:
- $1,000 deductible for your car damage if you are at fault
- Comprehensive coverage for drivers only if they carry comprehensive coverage on their personal auto policy
Here is Amazon Flex Insurance Policy:
Amazon provides an auto insurance policy – the Amazon Flex Auto Policy – at no cost to you that includes Auto Liability coverage, Uninsured Motorist/Underinsured Motorist coverage, and Contingent Comprehensive and Collision coverage. This policy applies when you are using Amazon Flex to deliver packages, pick up packages, and returning undelivered packages back to a designated location. This policy does not apply to drivers in New York. Drivers in New York are required to have their own commercial coverage.
Here are some details:
- Automobile Liability Coverage ($1 million in coverage per incident): This is your primary liability coverage while delivering with Amazon, and it covers damages to a third party’s vehicle or person
- Uninsured/Underinsured Motorist coverage ($1 million in coverage per incident): This covers bodily injury to you and to other occupants of your vehicle as well as damage to your vehicle in the event another motorist is at fault for an accident and doesn’t carry adequate insurance.
- Contingent Comprehensive and Collision coverage ($50k in coverage per incident): As long as you have Comprehensive and Collision coverage on your personal auto policy, this covers physical damage to your car while delivering with Amazon. Damages to your vehicle up to $50k are covered but you are responsible for a $1,000 deductible. If you do not have Comprehensive and Collision coverage on your personal policy, this coverage is not available to you.
FAQs about Amazon Flex Auto Policy
Here are some other frequently asked questions about Amazon Flex Auto Policy and commercial insurance coverage:
Do I need special insurance?
You’ll need to maintain personal auto insurance if you are driving a personal vehicle or ensure that you have required insurance coverage if you are renting or borrowing a car. Drivers in New York are required to have their own commercial coverage. Here are some more details: http://www.nyc.gov/html/dot/html/bicyclists/commercial-cyclistists.shmtl
Am I responsible for a deductible under the Amazon Flex Auto Policy?
You are not responsible for a deductible under the Automobile Liability Coverage. However, you are responsible for a $1,000 deductible under the Contingent Comprehensive and Collision coverage, which covers physical damage to your car while delivering with Amazon.
I’m driving in New York. What coverage am I required to have?
Delivery Partners who deliver in New York are required to have commercial auto insurance that meets the minimum required by New York state law:
- $10,000 for property damage for a single accident
- $25,000 for bodily injury and $50,000 for death for a person involved in an accident
- $50,000 for bodily injury and $100,000 for death for two or more people in an accident
- Commercial insurance covers your activity that may be excluded from your personal policy while delivering for Amazon Flex. You can contact your auto insurance company to verify information about your coverage. Commercial insurance is required when delivering goods in the State of New York.
What if I have my own commercial auto policy?
If you maintain a commercial auto policy for your vehicle, your insurer will provide primary coverage for you while delivering with Amazon Flex, and the Amazon Flex Auto Policy will be excess over your commercial auto policy (except in New York).
Do I need to tell my personal auto insurer that I deliver with Amazon Flex?
As an independent contractor, it is your responsibility to understand the terms of your personal insurance coverage and to get in touch with your personal insurance company if you have any questions.
Who underwrites the Amazon Flex Auto Policy?
Zurich American Insurance Company is the underwriter of the policy.
Who should I contact if I get into an accident?
If you get into an accident, you are required to: (a) comply with any obligations you would customarily have (such as providing proof of auto insurance and reporting the incident to the policy and to your auto insurance company, if required by the terms of your policy), and (b) immediately report the incident to Amazon Flex Support either over phone or email ([email protected]). Be prepared to provide details about the incident, including a description of the loss, location of the incident, information about your vehicle and the third party’s vehicle or property damage, and any other documents (e.g. pictures, police reports, etc).
You can provide the Amazon Flex Auto Policy information below to the third party in the event of an accident while delivering with Amazon Flex, unless you maintain your own commercial auto policy in which case you should provide the details to your own policy.
Insurer:
- Zurich American Insurance Company
- Policy Number: BAP014670100
- Effective Date: 31 August 2016
- Expiration Date: 1 March 2017
Will Amazon cover my medical expenses if I’m injured while delivering with Amazon Flex:
The Amazon Flex Auto Policy does not cover medical expenses or injuries. As independent contractors, delivery partners are responsible for their own medical expenses while delivering with Amazon Flex.
If my car is damaged in an accident, is my personal auto insurer required to respond, or is the Amazon Flex Auto Policy available independent of my personal auto policy?
If the accident occurred while delivering with Amazon Flex, the Amazon Flex Auto Policy provides contingent collision coverage and will ocver your auto damages if collision coverage is provided on your personal auto policy.
Does the Amazon Flex Auto Policy cover towing, flat tire, or rental car expenses resulting from an accident?
The Amazon Flex Auto Policy covers towing as a result of an accident while delivering with Amazon Flex. Rental car expenses and flat tire repairs are not covered under the Amazon Flex Auto Policy.
Does the Amazon Flex Auto Policy provide coverage, even though I haven’t provided information about my vehicle?
Yes, the Amazon Flex policy applies to all delivery partners during the time they are delivering with Amazon Flex.
Who is financially responsible for the Amazon packages if they are damaged, lost, or stolen?
Amazon will cover the loss on packages that are damaged, loss, or stolen, except in instances of fraudulent or illegal activity involving the Delivery Partner.
Are there any cases or situations that I should be aware of that would not be covered under the Amazon Flex Auto Policy?
The policy has general exclusions like intentional injury, racing, war, terrorism, and nuclear hazard. Additionally, the Amazon Flex Auto Policy does not cover damage, lost, or stolen property while delivering.
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