Amazon Flex insurance

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What is Amazon Flex?

If you want to be a delivery driver for Amazon, then you do it through Amazon Flex. It’s a platform that allows contractors to flexibly deliver packages for the e-commerce giant.

The only thing that you need if you want to drive for Amazon Flex is a car or van, a driving license, no prior convictions resulting in a driving suspension in the past five years, and of course, the appropriate insurance.

What kind of insurance do I need as an Amazon delivery driver?

Amazon Flex drivers have two different types of insurance they can go for:

The first of these is hire & reward, or commercial vehicle insurance. This type of policy provides you with cover as you are making your deliveries, and while it will apply to Amazon Flex, is not limited to it. This means that having this type of insurance policy will allow you to work for other delivery companies as well, something that many drivers take advantage of.

Amazon also accepts Business Class 3 insurance, which is a more specific type of policy designed for those traveling between businesses. It’s important to note that Business Class 3 insurance may differ slightly from insurer to insurer. So, if you choose to go for this option, it’s absolutely vital that you check to see that your specific policy will work for Amazon Flex.

Business Class 3 insurance is generally cheaper than hire and reward cover as it offers narrower protection, so it could be an option for those looking for a more cost-effective solution.

Whichever kind of policy you go for, it’s worth consulting the Amazon Flex FAQ’s or getting in touch with them directly to make sure it’s going to be suitable.

Does Amazon provide drivers with insurance?

On top of your own insurance policy, which may vary in its level of protection, Amazon Flex drivers also get supplementary cover. This means that you have two separate policies working at the same time, often with overlapping clauses.

Part of the reason you need this is that your personal car insurance policy, otherwise known as social, domestic & pleasure (SD&P), is not valid during periods when you are working as a delivery driver. Therefore, for your own cover, as well as Amazon’s, specific courier insurance is required. 

What does Amazon Flex insurance cover?

The level of cover you have will largely depend on the courier insurance you have taken out. As with an SD&P policy, it is broken down into three distinct categories:

• Third party only: Protects you from costs associated with injuring another person or damaging their property
• Third party, fire and theft: Offers third party cover but also pays out if your vehicle is damaged / lost through fire or theft
• Comprehensive: Provides third party, fire and theft cover as well as any damage to yourself or your vehicle as a result of an accident.

The minimum amount of cover required to work for Amazon Flex is third party, although many drivers opt to go for a higher level of protection.

There are also additional types of cover available, more suited to the risks faced by delivery drivers, these include:

• Third party liability: Protecting you against any compensation claims made by a customer or member of the public.
• Goods in transit: Covers the cost of any damaged or lost packages that you have been assigned to deliver.

How much does Amazon Flex insurance cost?

Exactly how expensive your policy is will depend on a variety of factors. As with any kind of insurance, a company will look at the risk of their investment when calculating the premium. The first factors they will consider will be:

• Your age and how long you’ve been driving 
• Your driving history 
• The vehicle you will be using
• Length of shifts

As well as these, you may be asked questions about what areas you will be servicing and what hours you will be working. This is because from an insurer's perspective, someone working a night shift in an area with a higher crime level will be seen as more of a liability than someone working day shifts in a quiet residential area, and will therefore require a more expensive policy. 

How to get cheaper Amazon Flex insurance

To make your own courier insurance policy cheaper, there are a few steps you can take.

The first of these will be to use a less expensive vehicle to do your deliveries, for example a motorcycle over a car, as less expensive vehicles command lower premiums. The number of packages you would be able to carry would be reduced significantly though.

There might also be certain steps you can take which will be included as clauses in your policy. This includes ensuring your vehicle is kept in a secure location overnight or choosing more favourable hours and areas to work in.

As is always the case with insurance, the best way to get the cheapest deal is to search the market for the best offers.