What Type of Insurance Do I Need To Deliver for Amazon?
 Written by Dylan Tate Dylan TateDylan Tate is an insurance content expert for SmartFinancial with 70+ articles about home, auto and life insurance under... Read more |  Edited by Dan MarticioDan MarticioDan Marticio is the content manager at SmartFinancial and has written 150+ articles across multiple insurance verticals.... Read more |
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Whether you are driving an Amazon-branded van or your own personal vehicle, you will need to maintain commercial auto insurance to be covered while you are delivering packages. You should be able to get coverage through Amazon or an Amazon insurance partner, although you may also need to have private passenger car insurance or buy a separate commercial policy depending on your circumstances.
Keep reading to learn more about Amazon car insurance including how it differs between the two types of Amazon delivery programs.
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Key Takeaways
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What Types of Delivery Programs Does Amazon Offer?
You may be able to contract with Amazon as a delivery driver through one of two programs: the Amazon Delivery Service Partner Program or Amazon Flex.
Amazon Delivery Service Partners
Delivery Service Partners (DSPs) are independent businesses whose owners partner with Amazon to deliver packages that have been ordered through the company’s e-commerce platform. If you drive for a DSP, you are considered an employee of the DSP rather than an employee of Amazon.[1]
Although they aren’t officially considered Amazon employees, 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.[1]
Amazon Flex
Meanwhile, 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.[2]
Does Amazon Offer Car Insurance for Delivery Drivers?
In general, drivers who contract with Amazon can obtain car insurance coverage either directly from Amazon or from an insurer recommended by Amazon. However, the availability of Amazon auto insurance policies and the coverage types they include will depend on your location and the delivery program you participate in.
Amazon Delivery Service Partners
DSP owners can insure their fleets through Amazon’s preferred insurance program manager, Marsh Affinity. Commercial auto insurance for Amazon drivers from Marsh includes physical damage protection in the form of comprehensive and collision coverage along with bodily injury and property damage liability insurance. Marsh also offers other commercial coverage types to DSPs including cargo legal liability insurance, general liability insurance and workers’ compensation insurance.[3]
Amazon Flex
Conversely, the Amazon Commercial Auto Insurance Policy automatically covers Amazon Flex drivers’ personal vehicles during their delivery blocks. This coverage is available at no cost and it includes $1 million worth of liability insurance plus comprehensive coverage, collision coverage and uninsured and underinsured motorist coverage.[4]
What Type of Insurance Covers Amazon Delivery Drivers?
Amazon delivery drivers can only be covered by commercial auto insurance since personal auto insurance policies generally exclude coverage for business activities.
Otherwise, you could be completely on the hook for medical expenses and property repair bills that arise if you get into an accident while delivering packages. To get an idea of how much money you could have to pay out of pocket if you don’t have proper coverage, see the below table for an overview of the average cost of various types of personal car insurance claims.[5]
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Coverage Type |
Average Claim Amount in 2022 |
|---|---|
|
Bodily injury liability insurance |
$24,211 |
|
Property damage liability insurance |
$5,313 |
|
Collision insurance |
$5,992 |
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Comprehensive insurance |
$2,738 |
Do I Need Additional Insurance To Deliver for Amazon?
Even though a personal car insurance policy won’t cover you while you are driving for Amazon, you are still required to maintain personal auto insurance in compliance with your state’s laws in order to qualify for Amazon Flex insurance. You will likely want to buy full coverage for yourself since Amazon will only insure your vehicle against physical damage if your personal insurance coverage includes comprehensive and collision coverage.[4]
In addition, Amazon Flex car insurance is not available in New York, so you will likely need to shop for commercial car insurance from independent insurance carriers if you live in the Empire State. For example, GEICO recommends that Amazon Flex drivers obtain coverage through a commercial rideshare insurance policy.[6]
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Dylan Tate is an insurance content expert for SmartFinancial with 70+ articles about home, auto and life insurance under his belt. He has over seven years of experience writing for online publications, primarily about gaming and esports. In the process, he has become an expert in search engine optimization, news reporting, feature writing and copy editing.
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