What insurance do I need for Amazon Flex in the UK?

In the last few years, the fastest growing segment of the on-demand industry has been package delivery. There are several high-profile platforms to earn an income with, such as Amazon Flex.

Becoming an Amazon Flex delivery driver in London is easy because Amazon is continually looking for new drivers so it keeps the process simple for those who want to get started.

Whether you use your personal car for Amazon Flex deliveries or go for a PCO cars for hire plan or a Flexi Own car, you’ll need Hire & Reward insurance. This is a type of commercial auto insurance policy that covers you for making deliveries in exchange for money.

What insurance do I need for Amazon Flex?

If you use your personal car to make deliveries, you’ll need to have the usual personal auto insurance – Social, Domestic & Pleasure Insurance. This covers personal use of the car, for things like driving to the shops or commuting to work.

As an Amazon Flex driver, you’re classed as a self-employed driver performing commercial activities. This means you use your own car to make deliveries. It’s also your responsibility to get insured with a commercial insurance policy – known as Hire & Reward - to protect you while driving for delivery work.

The Amazon FAQ page states that your car needs business class 3 or commercial car insurance issued in the UK to be accepted for Amazon Flex. However, the definition of business class 3 insurance (defined as an insurance for someone travelling between business locations) varies from insurer to insurer and may not cover delivery for Amazon Flex specifically.

Therefore, a Hire & Reward insurance policy would be the best idea, because it covers all commercial delivery work.

Hire & Reward insurance – what you need to know

Hire & Reward insurance is a specialised insurance policy for those who drive for Amazon Flex and other delivery and courier services. It provides coverage for commercial activities, such as delivering parcels, offering protection in case of accidents or damage while in the course of your delivery duties. Since personal vehicle insurance usually does not cover commercial use, it’s essential for Amazon Flex drivers to secure such a policy for legal compliance and financial protection.

Hire & Reward insurance covers:

• Vehicle damage: Covers damage to the driver’s vehicle during delivery activities.

• Third-party liabilities: Protection if the driver causes an accident that injures someone or damages another vehicle or property.

• Goods in transit: Provides coverage for the packages being delivered.

• Legal expenses: Covers legal costs if a claim is made against the driver.

• Personal accident coverage: Some policies provide coverage for personal injuries sustained while working.

Factors affecting insurance costs

1. Driver experience

• Length of driving history: Insurance providers typically offer lower premiums to drivers with several years of driving experience. The logic behind this is that experienced drivers are less likely to be involved in accidents.

• Commercial driving experience: If the driver has previous experience in delivery services, they may benefit from reduced premiums since they are seen as more capable of handling high-traffic or high-stress driving situations.

2. Driver ratings

• Amazon Flex ratings: Drivers are rated on their performance by Amazon, based on factors such as delivery timeliness, customer feedback, and overall reliability. High ratings often indicate a driver is dependable and cautious on the road, making them less risky to insure.

• Driving Behaviour Scores: Some insurers may also consider telematics data (from apps or in-vehicle tracking devices), which track real-time driving behaviour like speed, braking, and cornering. Safer driving habits lead to lower premiums.

How to reduce costs

• Building a good driving record: Consistently maintaining a clean driving history and positive feedback from customers or from Amazon can help drivers negotiate lower premiums.

• Choosing the right policy: Opting for a policy that covers only what’s needed (e.g., excluding unnecessary extras like international coverage) can also lower costs.

• Telematics insurance: Some companies offer ‘pay-as-you-go’ or ‘pay-how-you-drive’ models, which reward safe driving with lower premiums over time.

For Amazon Flex drivers, a high driver rating and a strong history of safe driving are critical in keeping the Hire & Reward insurance affordable.

Does Amazon UK provide insurance for its drivers?

Yes. Amazon Flex provides drivers with a commercial policy for free, but it strongly advises them to keep their personal auto insurance if they use their own car to make deliveries.

This is because some personal insurance policies prohibit drivers from using their cars for any kind of courier work. This also means that every time you use your car for Amazon Flex, your personal insurance is voided. Having a commercial policy adds extra protection against that and is also in compliance with Amazon Flex requirements.

Amazon provides the Amazon Flex Auto Policy, which includes motorist coverage, auto liability coverage, as well as contingent comprehensive and collision coverage, but only if they’re using Amazon Flex to pick up, deliver, and return packages.

What does the Amazon Flex insurance cover?

As this is meant to protect you only while doing deliveries for Amazon Flex, it covers:

• Damages caused while driving to third parties when you’re working for Amazon

• Damages to your car while you’re working for Amazon.

Amazon Flex insurance does not cover:

• Social, Domestic & Pleasure driving

• Incidents that happen while you lend your car to someone else

• Carriage of passengers for reward (this includes ridesharing)

It’s important to understand how Amazon defines when you are and not working for them. According to nimblefins.co.uk, your coverage starts when you arrive at the depot to collect packages from them and ends either when you successfully finish your final delivery or when you’ve returned to the depot to return any undelivered goods. If an accident occurs in between these times, then you’re covered by Amazon.

At the same time, if does not cover the commute between home to depot and last delivery to home, so make sure your Social, Domestic & Pleasure insurance does.

Here are the key Amazon Flex insurance requirements for the UK:

• Drivers must have a mid-sized vehicle of five seats or more and a valid UK insurance policy covering their vehicle for business use.

• You must live in an area that Amazon Flex covers.

• An iPhone or Android device to access Amazon Flex jobs, which are viewed through the Amazon Flex app.

• You must be at least 18 years old and not a current employee of Amazon.

• The policy must cover hire and reward, which allows the vehicle to be used for paid deliveries.

• You must meet the legal minimum coverage for your vehicle.

• You need to pass a background check and be legally entitled to work in the UK.

How much does Amazon Flex insurance cost?

It depends.

When insurance companies provide you with a quote, they look at the type of car you drive, where you drive, and what you will be using it for. They also consider driving history and any previous insurance claims.

Can Amazon Flex drivers have a passenger?

Amazon does allow you to carry a passenger or pet while making deliveries with the proviso that there must be enough space for both the passengers and the packages to accommodate them safely. Also, the passengers are not allowed to perform or assist the driver with any Amazon Flex duties.

Some auto insurance companies may have different requirements for carrying passengers and pets while delivering, so it’s always a good idea to check that you’re covered before you start driving.

At Splend, insurance is included in your total package price, giving you peace of mind that you are covered without having to worry about shopping around or setting aside additional sums for insurance cover.

Can I work for Uber with Amazon Flex insurance?

If you’re driving for Uber, you’ll need private hire taxi insurance, which covers you for carrying passengers in exchange for money.

If you’re working for Uber Eats, you may be able to use a similar Hire & Reward insurance policy as Amazon Flex drivers. You’ll just need to make sure that you’re covered for the type of goods you'll be delivering and the work you’ll be doing.

Whichever policy you choose, always check that it meets the minimum requirements before you start accepting jobs.

Can you be a delivery driver without delivery insurance?

Before you can start working as a delivery driver, you’ll need the right type of insurance coverage.

If you’re delivering third party goods as a courier or delivery driver, you’ll need a commercial auto insurance policy that includes Hire & Reward. That goes for whether you’re using a car, van or scooter to make deliveries.

If you’re delivering food, say for Uber Eats or Just Eat, you’ll need a similar commercial auto insurance policy that includes cover for food delivery.

If you’re carrying passengers in exchange for money, you’ll need private hire insurance.

You’ll also need a personal auto insurance policy for driving outside of work (known as Social, Domestic & Pleasure insurance). This keeps you covered when driving to the depot to start working, or commuting home after your shift has ended.

About Splend

At Splend, we believe in drivers. We know their vehicles need to work harder than most; that they drive more miles than most; that their insurance is hefty; their maintenance costs high and that they can face unreasonable finance rates – which is a heavy load to carry on their own.

That’s why at Splend, we exist to support rideshare drivers with a new model, that takes all those car ownership costs, and provides them for less, with lower purchase prices, better rates, lower servicing and insurance costs – all for one weekly repayment, all in one place.