What Insurance Do Amazon Delivery Drivers Need in New York?

Last Updated on July 7, 2021

Over the past few years, Amazon has established itself as an essential product marketplace and delivery service. Customers all over the world can order a huge range of products directly to their doorstep in a very short amount of time. Amazon delivery services were in particularly high demand during the pandemic, but this demand is likely to continue even as the pandemic comes to a close.

What Insurance Do Amazon Delivery Drivers Need in New YorkBecause Amazon products have been in such high demand, there has been a huge need for reliable Amazon delivery drivers, especially in dense areas like New York. However, if you’re starting a career as an Amazon delivery driver, it’s important to make sure you have the right insurance. You’ll be driving very frequently, and it’s crucial to make sure you are protected financially and legally in the event of an emergency.

In this article, we’ll talk about the insurance you’ll need as an Amazon delivery driver in New York, as well as tips for finding the right insurance policy.

Which Amazon jobs require your own insurance?

Not every Amazon delivery job will require you to get your own car insurance. Full-time Amazon delivery drivers do not use their own vehicles and therefore do not need to have their own insurance outside of the job. 

However, Amazon Flex drivers use their own cars to deliver packages on a flexible schedule. In this situation, drivers reserve a block of deliveries ahead of time and get paid based on how much work they complete. These drivers often complete deliveries for Amazon Fresh, the company’s grocery delivery service, or Amazon Prime Now, which is the company’s 2-hour rush delivery service. Because these jobs require you to use your own vehicle, they also require you to have your own insurance.

What kind of insurance do you need to drive for Amazon in New York?

For both safety and liability reasons, you need a reliable car insurance policy in order to drive for Amazon. New York requires that you have both personal and commercial car insurance coverage in order to work for Amazon Flex. New York state requirements for Amazon drivers are stricter than they are in other states.

In terms of personal car insurance, New York has stricter requirements than many other states. They require drivers to have $50,000 per person and $100,000 per accident in bodily liability coverage as a delivery driver. You’ll also need at least $10,000 in property damage coverage. You’ll typically need to find a policy that is designed specifically for delivery and rideshare drivers. In New York, you will also need a commercial car insurance policy on top of your personal car insurance policy.

Amazon also provides its own car insurance for drivers who are using their own cars for deliveries. This is called Amazon Flex insurance. You can’t use this insurance on its own, but it does provide supplemental coverage on top of your personal insurance without an additional cost. Amazon Flex coverage provides up to $1 million in liability coverage for damage to a third party, as well as $50,000 in coverage for your vehicle. In order to get the coverage for your own vehicle, your personal policy needs to have comprehensive and collision coverage.

This policy also comes with coverage if you’re in an accident with an uninsured or underinsured motorist, with up to $1 million in damages if you are in an accident in this situation. It’s important to note that if you get into an accident on the clock and are found at fault, you’ll need to pay a $1,000 deductible in order to access your Amazon Flex coverage. Amazon Flex insurance also won’t cover any other passengers in your vehicle if you get into an accident, which is why it’s so important to have personal coverage as well. Your Amazon Flex policy only works when you’re on the clock – you can’t use it for personal accidents.

How can I find insurance for delivery drivers?

Your Amazon Flex policy will start automatically when you start driving for them. However, you’ll need to find your own personal and commercial insurance policy that fits New York state’s requirements. There are many insurance companies that have started offering policies specifically for Amazon Flex drivers and other gig workers.

It can be tempting to try to hide your delivery driving from your insurance company in order to get a more affordable policy, but you shouldn’t do this. If you get caught driving for Amazon without the proper insurance, you could end up suffering legal consequences for insurance fraud. This could result in you losing your car insurance or even having your license suspended. Once you’ve had your car insurance canceled, it can be very difficult to find an affordable new policy. You could also end up paying a fine or suffering other legal consequences.

The best way to find an affordable insurance policy for Amazon delivery driving is to get quotes from several different companies and price compare. Since every insurance company has its own pricing structure, and you might be surprised by how much the cost can vary between providers. Be sure to let them know that you are shopping around – this will entice them to give you the best price possible to win you as a customer. You should also ask to see a full list of discounts – you might be surprised by how many you qualify for.

Final thoughts on Amazon Flex Insurance

Driving for Amazon Flex can be an easy way to make money on your own time. However, it’s very important to make sure you have the right insurance if you’re going to do so. In New York state, you’ll need both a personal and commercial insurance policy in addition to the supplemental insurance that Amazon Flex provides. Luckily, many car insurance companies have started offering policies specifically designed for delivery drivers.

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  1. Lisa Anderson says:

    NYS commercial insurance law needs to be changed for Amazon flex drivers. I have gone out to several insurance companies and the insurance is unaffordable. I won’t take the chance driving without insurance but can not afford $2300.00 a year for personnel and commercial insurance to make package deliveries out of my car part-time peridium. I know many flex drivers, who drive without insurance because of this.
    You for the most part can only get one block of time per day to deliver packages, 3 to 4 1/2 hours a day if you are lucky enough to snag a block every day which I have gone weeks with no blocks of time to deliver because it’s slow and not many available and you have to get them when they drop in the amazon flex app before others snatch them up. $ 2300 dollars a year adds up to near $200 a month insurance payment. You only make $18 dollars an hour , and that is before you take federal and NYS tax out, gas and more oil changes, cell phone data, tire replacement, and wear and tear on your vehicle. After taking out all the cost of insurance, gas, taxes , car maintenance, you are lucky if you make $10 dollars or less an hour, with possibly a few blocks a week , you take out it just isn’t worth it to give up your free time for pocket change a month and its hard work getting in and out of your car 48 to 50 times and walking to houses doors to deliver packages. Something needs to change , Amazon offers free commercial insurance while flex drivers are delivering, every state EXCEPT NEW YORK STATE, because NYS requires you to have expensive commercial insurance the same as a business or rideshare with people in your car! thanks NYS for making it hard for a person to supplement their income when living on a single income which is extremely difficult in this state.

    1. Juan Pena says:

      Definitely you are right

    2. Neil says:

      Can you please tell me Which insurance company charges $2300 in New York ?

      1. JMurphy says:

        I just tried to get a quote from Progressive, and it was $7000 per year. I’ll stick with door dash.

        1. Lisa says:

          you need commercial insurance for that too

    3. Henry F. says:

      Amazon misclassifies drivers as independent contractors, but in fact drivers meet the conditions that would determine them as employees of Amazon. This is a game played by many large companies to avoid the responsibilities of employers, to save money, and to curtail the benefits and rights that workers would have. An employee does not pay for insurance or any vehicle-related expenses. An employee gets paid for every hour they are working. I work for a class action law firm that has litigated this misclassification issue in many cases for exploited drivers. So don’t blame New York State when it sounds like you’re getting screwed by Amazon. Blame Amazon for not treating you on the par with USPS or UPS drivers.