When Amazon Flex Commercial Insurance is not Enough
If you plan on using your vehicle for business in California, like package delivery, including for Amazon Flex, then you should keep in mind that your personal insurance policy will not cover you (the driver) when delivering packages. But it will cover you when not engaging in any business activity.
The Amazon Flex policy will cover you for most incidents that occur when making deliveries, on condition that you maintain your standard personal auto insurance. Although it is a commercial policy, you still need to get your own commercial vehicle insurance policy, because working for Amazon Flex might void your personal auto insurance policy, leaving you at risk of paying for damages and other costs out-of-pocket.
Coverage from Amazon Flex is not enough
The policy applies when you take up packages from the warehouse using Amazon Flex and deliver them to a customer, or return them to a designated location, within California and other states except New York. But to qualify for the coverage, you must maintain your personal auto insurance policy.
When you’re not making deliveries, you depend on your personal auto insurance policy for protection. Yet it may be invalidated for using your vehicle for commercial purposes, including working for Amazon Flex. This is because of the issue of “misrepresentation of facts”. When getting your personal insurance, you probably indicated that you were driving a certain number of miles, using your vehicle mainly for personal use, and other details.
So if you indicated that your vehicle is for “commute” or “personal” use, then driving for Amazon Flex would mean that you misrepresented the facts about your vehicle – though unintentionally – and are in violation of the terms of your policy. This would in turn be sufficient grounds to void or terminate your personal auto policy.
You may also have given false information about the number of miles driven per year, especially if you had no idea that you’d be driving for Amazon Flex when purchasing your auto policy. It’s important that you provide accurate and honest information about the miles driven annually, including those from making Amazon Flex deliveries, to avoid disputes when you need your policy.
More importantly, you should be careful not to void your personal auto policy as it may cause the Amazon Flex commercial policy to become voided as well.
Get it right
Though commercial auto insurance rates are higher than personal auto insurance rates, our Brookhurst insurance agents can help you get an effective insurance policy while keeping your costs low. In some cases, all you need is an endorsement to your personal policy, noting that you are now making deliveries with Amazon Flex, so your policy comes secondary to the Amazon Flex commercial auto policy.
We have specialized agents that will help you find the best solution for your insurance needs, offering customized coverage plans unique to your business. Our rates are very competitive. You may request a quote either by calling our office @ 818.465.7860 or by filling out our quote form.