The Beginner’s Guide To Commercial Vehicle Insurance

Commercial vehicle insurance is a type of motor insurance policy that offers coverage for commercial vehicles. If you are planning to buy this form of coverage for your own commercial vehicle, this article can prove to be a quick and handy guide for you. Let’s get started and take a look at what commercial vehicle insurance entails.

What does commercial vehicle insurance generally cover?

A commercial vehicle insurance plan can be either – third-party insurance or comprehensive insurance. Let’s see what kind of coverage we can expect from each of these.

A third-party commercial vehicle insurance plan covers you against third-party liabilities (property damage or injury/death) during an accident. A comprehensive commercial vehicle insurance plan covers third-party liabilities as well as own damages. Additionally, a comprehensive insurance plan covers you against natural disasters and manmade disasters too. So, you get covered if your commercial vehicle suffers losses due to damages from flood, earthquake, cyclone, fires, and so on. You will even receive coverage for theft.

All types of commercial vehicles can benefit from the coverage given by a commercial vehicle insurance policy. This includes trucks used for carrying goods, taxis, auto rickshaws, and more. There is a high degree of risk that needs to be covered for commercial vehicles. Any damage to these vehicles can lead to a disruption of business and therefore a loss of income. Having the protection of a commercial vehicle insurance policy can truly give peace of mind.

Add-ons in commercial vehicle insurance

Just like with private motor insurance, you can enhance your commercial vehicle insurance plan with the help of riders or add-ons. Some of the best add-ons that can prove useful are –

  • Consumables cover
  • Roadside assistance cover
  • Zero depreciation cover
  • NCB protector
  • Engine protection cover

Do ask the general insurance company for a complete list of all the add-ons they can offer you with your commercial vehicle insurance plan.

What are the general exclusions for commercial vehicle insurance?

There are certain exclusions to coverage that you need to be aware of when buying commercial vehicle insurance. You will usually not be able to raise a claim under the following circumstances –

  • If you are caught without a valid driving license
  • If your accident has occurred when you are under the influence of some substance like drugs or alcohol
  • If your accident takes place outside the geographical limits outlined in your policy
  • If your vehicle has been used for any purpose that is against the law

Do make sure to read the exclusions in full detail in your policy. Having the right knowledge about these exclusions will save you from any issues when you need to raise a claim.

Do make sure to thoroughly review the general insurance company from whom you purchase commercial vehicle insurance. Look for features such as a great claim settlement ratio, a good network of garages, and affordable premiums. Compare the commercial vehicle insurance plans offered by at least 4 to 5 insurance companies before choosing one for you. Hope that this article has been helpful.

All the best!