Amazon's Auto Insurance Ambitions: Exploring The Online Retail Giant's Foray Into Insurance

Amazon offers commercial auto insurance to its Flex drivers in most states. This includes liability, collision, and comprehensive coverage, as well as uninsured motorist coverage. However, this insurance only applies when drivers are actively making deliveries and does not cover passengers. To be eligible for Amazon's commercial coverage, drivers must have a personal auto insurance policy. Amazon also provides commercial auto insurance for its Delivery Service Partners (DSPs) through Marsh Affinity, although DSPs can choose to purchase insurance from competitors.

Amazon Flex auto insurance requirements

Amazon Flex auto insurance is a topic of interest for many, especially those considering becoming delivery drivers for the company. Amazon offers its Flex drivers commercial auto insurance in most states. This insurance is free for the drivers and provides coverage for various scenarios. However, it is important to note that Amazon's insurance does not cover everything, and drivers may need to purchase additional insurance to ensure they are fully protected.

To be eligible for Amazon Flex insurance, drivers must meet certain requirements. Firstly, they must have a valid driver's license and be over the age of 21. Additionally, drivers must have personal auto insurance that meets or exceeds the minimum coverage limits mandated by their state of residence. This personal insurance policy is crucial, as Amazon's commercial insurance acts as supplemental coverage.

Maintaining continuous automobile insurance coverage is also essential for Amazon Flex drivers. Any lapse in coverage could result in deactivation from the program. Amazon periodically checks its drivers' insurance status, both at the time of application and during their participation in the program.

Amazon Flex auto insurance provides coverage for drivers while they are actively delivering packages for Amazon. The policy includes liability coverage of up to $1 million per incident if an accident is ruled to be the Amazon driver's fault. This covers damage to property and bodily injury to third parties. There is also uninsured/underinsured motorist coverage of up to $1 million, which comes into effect if the other party is at fault and doesn't have sufficient insurance.

Additionally, Amazon's commercial auto insurance includes comprehensive and collision coverage for up to $50,000. However, this is contingent on the driver already having a personal policy with this coverage. It's worth noting that there is a $1000 deductible for at-fault accidents.

Amazon Flex auto insurance does not cover personal injuries or damages to the driver's vehicle. It is designed to protect against third-party liability claims arising from accidents during deliveries. The insurance also does not cover passengers in the vehicle at the time of the accident and is invalid if someone else is driving the vehicle.

Furthermore, drivers in New York are not covered by Amazon's commercial auto insurance policy. Drivers in this state may need to purchase additional commercial coverage to meet delivery requirements.

Additional Insurance Considerations:

While Amazon's insurance provides some protection, it is recommended that Amazon Flex drivers consider additional coverage. This is because Amazon's insurance only applies when drivers are actively delivering, returning packages, or picking up packages from an Amazon facility. For any other usage, personal insurance is necessary.

Additionally, some insurance companies offer delivery driver add-ons or rideshare insurance, which can provide more comprehensive coverage for delivery drivers. These options may be worth exploring to ensure peace of mind while on the job.

Commercial auto insurance for Amazon drivers

Amazon offers commercial auto insurance to its delivery drivers, but the requirements and coverage vary depending on the driver's location and the delivery program they are enrolled in.

Amazon Delivery Service Partner (DSP) Program

Delivery Service Partners are independent businesses that contract with Amazon to deliver packages. DSP drivers are considered employees of the DSP, not Amazon. While Amazon doesn't provide insurance coverage for these drivers, it does recommend that DSP owners obtain commercial auto insurance from its preferred insurance program manager, Marsh Affinity. This insurance includes physical damage protection (comprehensive and collision coverage) and liability insurance for bodily injury and property damage.

Amazon Flex Program

Amazon Flex is a program that allows independent contractors to deliver packages for Amazon using their own vehicles. Amazon provides commercial auto insurance coverage for Flex drivers at no cost. This policy includes:

• $1 million in liability coverage
• Comprehensive coverage
• Collision coverage
• Uninsured and underinsured motorist coverage

However, this coverage is not available in New York, so drivers in that state will need to purchase a separate commercial policy.

General Requirements for Amazon Delivery Drivers

Regardless of the program they are enrolled in, Amazon requires all delivery drivers to have a personal auto insurance policy that meets their state's minimum requirements. This personal policy is necessary to receive commercial coverage from Amazon. Amazon will request proof of insurance before a driver can begin making deliveries.

In addition to a personal policy, delivery drivers may also need to purchase additional coverages, such as cargo liability insurance, to protect themselves from lost, stolen, or damaged packages.

Cost of Commercial Insurance for Amazon Delivery Drivers

The cost of commercial insurance for Amazon delivery drivers can vary depending on location, driving history, vehicle type, and selected coverages. The average price of a standard business auto insurance policy for Amazon delivery drivers ranges from $127 to $259 per month.

How to Get Commercial Insurance for Amazon Delivery Drivers

Amazon delivery drivers can obtain commercial insurance quotes from various insurance providers, including Brookhurst Insurance and Acko General Insurance. It's important to compare quotes and coverage options to find the best policy for your needs.

Amazon's entry into the Indian insurance market

Amazon's foray into the Indian insurance market is not an isolated incident, as the company has shown interest in the insurance sector globally. In 2020, reports suggested Amazon's intention to enter the car and motorcycle insurance market, leveraging its vast customer base. This news was an unwelcome threat to traditional insurers, especially given the challenges posed by the COVID-19 pandemic.

Amazon's approach in India is worth noting. The company is not launching its own insurance product but is reselling Acko General Insurance's policies. This partnership underscores Amazon's interest in working with digital and agile insurers. Additionally, Amazon Pay's integration will make the insurance purchasing process more seamless for customers, aligning with the company's focus on providing a frictionless buying experience.

While Amazon's entry into the Indian insurance market has valuable lessons for agencies and carriers, it also highlights the importance of marketing and leveraging technology to drive business. Agencies can differentiate themselves by offering customers choices, a strategy that Amazon employs in its retail business.

Amazon auto insurance for delivery service partners

Amazon runs an auto insurance program for its delivery service providers, but it is not obligatory for them to buy insurance from Amazon. Amazon's auto insurance program for its delivery partners is called Amazon Flex. Amazon Flex auto insurance is included if you carry a personal policy. The best insurance for Amazon Flex is a rideshare policy, which can be as low as $2 per month. Amazon Flex drivers must carry the proper insurance to drive legally in their state.

Amazon provides its Amazon Flex drivers with commercial coverage when delivering packages. To receive this commercial coverage from Amazon, you'll need at least a personal liability policy. All drivers in the US must purchase liability coverage. Amazon provides its drivers with additional protection through its commercial auto insurance policy. Amazon's commercial car insurance coverage includes additional liability auto insurance coverage, uninsured motorist coverage, and comprehensive and collision coverage, contingent upon each situation.

Amazon specifies that its commercial coverage only covers Amazon drivers. So, any Amazon auto claims for passengers will be denied. In addition, Amazon Flex delivery drivers must be actively making a delivery to receive coverage from the company's commercial policy. If you work for Amazon Flex but allow someone else to make your delivery, commercial vehicle insurance with Amazon Flex won't cover that individual if an accident occurs.

Amazon Delivery Service Partner (DSP) owners can buy liability and physical damage coverage, plus other commercial insurance coverage types from Marsh Affinity. If you drive for a DSP, you are considered an employee of the DSP rather than an employee of Amazon. DSP drivers may still drive Amazon-branded vehicles and wear uniforms provided by Amazon. Amazon also provides other services to DSPs, such as on-the-road support and employee benefit program assistance.

Amazon Flex allows independent contractors to deliver packages for Amazon using their own vehicles. Drivers are able to set their own schedules by reserving blocks of time when they will be available for deliveries. Amazon Flex drivers have commercial coverage from Amazon when delivering goods if they carry a personal policy. Unfortunately, drivers living in New York aren't covered by Amazon's commercial insurance.

Amazon Flex insurance for independent contractors

Amazon Flex drivers are independent contractors, and as such, they are not provided with the same benefits as regular employees. This means that Amazon Flex drivers are responsible for their own insurance.

Amazon requires all Flex drivers to have a personal auto insurance plan. This is because, as an independent contractor, you will be using your own vehicle to make deliveries. Amazon's 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.

Amazon's commercial auto insurance policy includes:

• 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.
• Comprehensive and collision coverage for up to $50,000.
• Coverage if you are at fault, but with a $1000 deductible for at-fault car accidents.

It's important to note that Amazon's insurance policy will not cover you if you have a passenger in the vehicle at the time of an accident, or if someone else is driving the vehicle. Additionally, state laws prevent drivers in New York from being covered by Amazon's policy.

As an Amazon Flex driver, you may also want to consider a commercial insurance policy, as this type of insurance protects you while driving for work. A commercial insurance policy includes public liability cover, which is not included in a standard personal auto insurance policy.

There are several insurance companies that offer coverage specifically for Amazon Flex drivers, including Allstate, GEICO, Farmers, Progressive, and USAA. These companies offer policies that include both personal and commercial coverage, which can help to fill in the gaps left by Amazon's policy.

Frequently asked questions