Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
What insurance do you need for Amazon Flex?
To work legally as an Amazon Flex driver in the UK, you need car or van insurance that includes hire and reward cover. Standard personal policies only cover social, domestic and pleasure use plus commuting to a single workplace. The moment you start delivering parcels for payment, your personal insurance becomes invalid.
Hire and reward insurance permits you to use your vehicle for paid delivery work. Without it, you’re driving without valid insurance, which is a criminal offence.
Amazon Flex UK insurance requirements: hire and reward
When applying for insurance, you must:
- State clearly that you deliver parcels for Amazon Flex
- Request hire and reward cover specifically
- Declare that you’re self-employed and carry goods for payment
- Confirm whether you work part-time or full-time
Being specific about Amazon Flex work prevents disputes when making a claim. Some insurers distinguish between different types of courier work, so accurate disclosure protects you.
Even if you only plan to do a few hours per week, you still need full hire and reward cover from your first delivery.
What insurance does Amazon provide?
Amazon provides third-party liability insurance while you’re logged into the app and actively delivering. This covers damage or injury you cause to others or their property during a delivery block.
However, Amazon’s insurance does not protect:
- Your own vehicle in an at-fault accident
- Damage to parcels you’re carrying
- Fire or theft of your vehicle
- Injuries to yourself
- Any incidents when you’re not logged into the app
- Driving to collection points or returning home
This gap is why you need your own commercial insurance policy.
Why personal car insurance doesn’t cover Amazon Flex
Standard policies exclude business use and hire and reward activities. If you’re stopped by police or involved in an accident while delivering on a personal policy, your insurance will be invalid.
This leaves you personally liable for all damage and could result in prosecution for driving without insurance. You could face:
- Six to eight penalty points
- A £300 fixed penalty, or unlimited fine if prosecuted
- Your vehicle seized and impounded
- Disqualification from driving if you’ve held your licence less than two years
- A criminal record
Any accident would also leave you paying for all repairs and third-party claims from your own funds.
How much does Amazon Flex insurance cost?
Hire and reward policies typically cost £300 to £800 more per year than standard social use insurance. Your actual premium depends on:
- Your age and driving history
- Where you live and park overnight
- Your vehicle’s make, model and security features
- How many hours you work each week
- Your existing no claims discount
Drivers under 25 and those in urban areas usually pay higher premiums. Installing a Thatcham-approved alarm and parking off-road can reduce costs.
If you already have another job and do Flex part-time, you’ll still need hire and reward cover. Part-time courier work requires the same level of insurance as full-time work.
Goods in transit insurance for Amazon Flex
Amazon’s insurance doesn’t protect you if parcels are damaged, lost or stolen while in your care. Goods in transit (GIT) insurance covers this risk.
Amazon may seek to recover losses if packages go missing or arrive damaged, particularly if you’ve failed to follow delivery protocols. GIT insurance protects you against these financial claims.
Most Amazon Flex drivers carry £1,000 to £5,000 worth of goods at once. Choose a cover limit that matches your typical delivery block value.
Commercial van insurance for Amazon Flex
Some Amazon Flex drivers use small vans rather than cars, particularly for larger delivery blocks or logistics routes. The insurance requirements remain the same, but van policies typically cost more than car insurance.
You still need:
- Hire and reward cover
- Cover for business use of the vehicle
- Goods in transit insurance
- Appropriate cover limits for the parcels you carry
Van insurance premiums reflect the higher value of the vehicle and increased risk associated with commercial use. If you’re considering using a van for parcel delivery, check what insurance you need to deliver parcels with a van before you start.
Switching from personal to commercial cover
If you’re currently on a personal policy and want to start Amazon Flex work, contact your insurer before you begin. Your insurer will either:
- Agree to amend your existing policy mid-term for an additional premium
- Decline to cover hire and reward, requiring you to find a new insurer
Never start delivering first and inform them later. If you need to switch insurers, arrange the new policy to start before your first delivery block. Don’t leave any gap in cover, even for a single day.
What to check before buying Amazon Flex insurance
Before committing to a policy, confirm these points with your insurer:
- Does the policy specifically include hire and reward for parcel delivery?
- Are you covered throughout your entire working period, including driving to collect parcels and returning home?
- What excess applies to claims made while delivering?
- Is your vehicle covered if stolen while loaded with parcels?
- Are business tools covered, such as a trolley or hand truck?
- What proof of cover will you receive for Amazon’s onboarding checks?
Ask whether the insurer has experience covering gig economy drivers. Some mainstream insurers don’t understand how Amazon Flex operates and may provide incorrect cover.
Amazon Flex and tax: what you need to know
As a self-employed Amazon Flex driver, you’re responsible for your own tax. You must:
- Register as self-employed with HMRC
- Submit a Self Assessment tax return each year
- Keep records of all income and expenses
- Pay Income Tax and National Insurance on your profits
You can claim expenses including insurance, fuel, vehicle maintenance and depreciation. Keep receipts and mileage logs to support your claims.
If you earn over £1,000 from Amazon Flex in a tax year, you must register for Self Assessment. Don’t wait until the end of the year to sort this out.
Get the right insurance for Amazon Flex
Working as an Amazon Flex driver offers flexibility and decent earnings, but only if you’re properly insured. Don’t risk your vehicle, your livelihood or a criminal record by delivering on the wrong policy.
Compare hire and reward policies now using the quote button on this page. Answer the questions accurately, declare your Amazon Flex work, and get covered before your first delivery block.