In the ever-expanding gig economy, delivery services like Amazon Flex play a crucial role. For drivers, understanding the nuances of Amazon Flex insurance coverage is essential to safeguard against risks and ensure financial protection. Amazon Flex provides a specific insurance policy for its drivers during delivery blocks, but the coverage has limitations that must be understood and addressed.
Amazon Flex Insurance Coverage Simplified
Amazon Flex insurance policies kick in during the active delivery periods, which are scheduled in advance by drivers when they reserve delivery blocks. Here's a breakdown of the coverage:
Coverage Period 2 & 3: During Deliveries
- Liability Coverage: Amazon Flex offers a $1,000,000 auto liability coverage, which includes uninsured/under-insured motorist coverage, significantly higher than many personal auto insurance policies.
- Comprehensive and Collision: The policy provides contingent comprehensive and collision coverage for damages to the driver's vehicle while making deliveries. It's important to note, however, that this coverage is secondary to any existing personal auto policy.
- Contingent Coverage: The comprehensive and collision coverage are contingent, meaning they only apply if the driver has personal comprehensive and collision insurance. Amazon Flex does not provide coverage if the driver does not have personal insurance.
- Deductible: There is a deductible of $1,000 for the contingent comprehensive and collision coverage, which is relatively lower than some other gig economy platforms.
- Exclusions: Passengers are not covered under Amazon Flex’s policy. This is a non-issue for Amazon Flex, as the service does not involve transporting passengers like rideshare companies.
The Critical Need for Adequate Insurance
For Amazon Flex drivers, their vehicle is a vital asset that enables them to earn a living. Adequate insurance coverage is a must-have to protect this asset. While Amazon Flex offers a robust liability cover, the comprehensive and collision aspects depend on the driver's own insurance, which may not always be sufficient.
Filling the Gaps with VOOM Insurance
Despite the coverage provided by Amazon Flex, drivers may find themselves with insurance gaps, particularly if they lack personal comprehensive and collision insurance. This is where VOOM's Rideshare Insurance comes into the picture. As a leading InsurTech company specializing in mobility insurance, VOOM provides tailored insurance solutions that can fill the gaps left by Amazon Flex's contingent coverage.