Amazon Flex Insurance for Delivery Drivers - All You Need to Know

Amazon flex insurance guide

While the past year or so has been tough for many industries, it’s safe to say that the e-commerce and home delivery market has flourished. Amazon reported a 37% increase in revenue in the third quarter of 2020, and more people than ever are now using their vehicles to generate income as a delivery driver – either as their sole occupation or as a ‘side gig’.

If you are considering becoming a self-employed delivery driver with Amazon Flex, you may be wondering what type of insurance you will need? The prospect of working to your own schedule can be appealing, but it’s important to make sure you are financially protected against any potential risks.

Delivery driving means you will be in your car or van a lot more, and you may have already found that finding a good quote online can be difficult as many of the established car insurance companies shy away from offering policies to delivery drivers.

To help you, we’ve put together the below guide about Amazon Flex insurance which details why it can be difficult to find a good quote at first and what you can do about it.

What insurance do you need to be an Amazon Flex driver?

Anyone who drives for Amazon Flex needs to buy a form of Hire & Reward insurance to get the right cover for delivery driving. 

Hire and reward insurance is a type of policy that legally covers you to hold and deliver passengers or goods in your car or van in order to receive payment.

It is a legal requirement to have this form of commercial car insurance if you are using your vehicle to deliver goods for Amazon.

Is ‘Business Class 3’ insurance enough for Amazon Flex?

Something that often confuses new Amazon Flex drivers is that Amazon’s own FAQs state that drivers “need to have business class 3 or commercial car motor insurance in the UK” in order to be legally covered to deliver goods.

However, ‘Business Class 3’ insurance may not be sufficient depending on the insurance company, as some define it as only covering someone who travels between two set locations to deliver goods – i.e. taking stock from one office to another, not from a depot to lots of different people’s homes – so make sure you check with your insurance company that their definition of ‘Business Class 3’ is sufficient to cover you for Amazon Flex.

Hire and reward insurance – often also called ‘commercial car insurance’ – is much less likely to cause any confusion and will almost certainly cover you for working as an Amazon Flex delivery driver. If you sign up for such a policy and specified that you will be using your vehicle as a courier or delivery driver then you should be fine. 

Does Amazon provide any insurance for drivers?

Once you have arranged your personal insurance, you may be wondering if Amazon provides any form of cover for its drivers. The good news is that Amazon Flex’s insurance policy is actually one of the best for delivery drivers and doesn’t cost a thing.

Amazon’s Flex insurance covers you for:

  • Damages caused while driving to third parties when you’re working for Amazon
  • Damages to your vehicle while you’re working for Amazon

The key here is how Amazon defines when you are working for them. For Amazon, your coverage begins when you arrive at the depot to pick up the packages from them. It ends when you’ve either completed your final delivery or when you get back to the depot to return any undelivered goods. If you have an accident during that time then you are covered by Amazon.

So you may be wondering why you need to arrange your own hire and reward insurance if Amazon provides cover while you are ‘on the clock’ with them?

Other than the fact that it is a requirement of signing up to drive for Flex, many insurance companies who focus on SD&P (driving for social, domestic and pleasure) will not cover drivers who work as delivery drivers because of the additional risks they are exposed to.

As a result, as well as being covered by Amazon’s own insurance, delivery drivers are expected to arrange their own form of commercial insurance to make sure they are fully covered at all times while using their vehicle.

To compare Hire and Reward quotes now, tap the button below. Alternatively, check out our related guides!

Get a Quote

Related guides