I signed up for Amazon Flex just for the December rush to pay for my kids’ Christmas gifts. I knew my personal policy wouldn’t cover me, but I didn’t want to buy a 12-month commercial policy for 4 weeks of work. I almost got trapped in a “Minimum Earned Premium” scam that would have cost me $400 to cancel.
Key Takeaways
- The “Minimum Earned” Trap: Commercial policies often require you to pay for a minimum of 25% of the term, even if you cancel after 1 week.
- Endorsements are Flexible: The easiest way to do seasonal work is to add a “Rideshare/Business” endorsement to your personal policy, then remove it in January.
- On-Demand Insurance: Apps like INSHUR or Buckle (in select states) allow for monthly or even daily coverage, perfect for holiday hustles.
- Cancellation Fees: Standard commercial carriers (Progressive, BiBerk) charge ~10% of the remaining premium if you cancel early.
The “Why”: Commercial Policy Structure
Commercial insurance is designed for year-round businesses, not gig tourists.
If you buy a 6-month policy for
200/mo) and cancel after 1 month, you assume you get $1,000 back.
Wrong.
Many policies have a “Minimum Earned Premium” of 25% or a “Short Rate Cancellation” penalty. You might only get $700 back. You paid $500 for one month of coverage.
[IMAGE: Graphic showing a calendar with “Dec” highlighted, contrasting “12-Month Policy” cost vs “Endorsement” cost]
The Investigation: Short-Term Solutions
I quoted coverage for a driver needing insurance from Nov 25 to Dec 31 only.
1. The Personal Endorsement (State Farm/Allstate)
- Strategy: Call agent, add “Business Use” or “Rideshare.”
- Cost: +$30/month.
- Exit: Call Jan 2nd and remove it. Pro-rated refund.
- Verdict: Best Option. No cancellation fees.
2. The Commercial Policy (Progressive)
- Strategy: Buy standalone commercial policy.
- Cost: ~$200 down payment.
- Exit: Cancellation fee applied.
- Verdict: Too expensive for 1 month.
3. Usage-Based (INSHUR – Amazon Flex partners)
- Strategy: Pay-as-you-go blocks.
- Cost: Cents per hour/mile.
- Verdict: Excellent if available in your state.
Comparison Table: Cost for 1 Month of Work
| Option | Upfront Cost | Cancellation Penalty | Total Real Cost |
| Add Endorsement | ~$30 (Pro-rated) | $0 | $30 |
| New Commercial Policy | ~$200 (Down payment) | ~$50 – $100 | $300+ |
| Risk It (Uninsured) | $0 | Bankruptcy | Infinite |
Step-by-Step Action Plan
- Call Your Current Agent First: Ask, “Can I add a TNC/Delivery endorsement just for one month?”
- Ask About “Fully Earned” Fees: If you must buy a commercial policy, ask the broker: “Is there a minimum earned premium clause? If I cancel in 30 days, exactly how much do I get back?”
- Set a Calendar Reminder: Insurance companies won’t remind you to cancel. Set an alert for Jan 2nd to drop the coverage, or you’ll pay for January unnecessarily.
FAQ
Does Amazon Flex provide insurance?
Yes, they provide a commercial policy while you are driving, but it often requires you to maintain personal insurance (and they may verify it). The endorsement protects your personal car from being dropped.
Can I just rent a car for the month?
Only if you rent through a specific partner program (Hertz/Uber). You cannot use a standard Avis rental for commercial delivery.