Commercial vehicle insurance policies offer comprehensive coverage for various types of commercial vehicles, such as auto-rickshaws, trucks, buses, lorries, cabs, etc., on the road. In the event of a mishap, they provide financial support to both parties involved, thereby easing the burden on business owners.
All commercial vehicle business owners must ensure their commercial vehicles have a comprehensive insurance policy to avoid hefty expenses in case of an accident. Let’s delve into plans and their other relevant details before you plan to buy commercial vehicle insurance online or offline.
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Types of Commercial Vehicle Insurance
Different types of commercial vehicle insurance are available with the insurers, some of which include:
- Passenger-carrying Vehicle Insurance: This type of insurance covers commercial vehicles that carry passengers for commute. It requires a necessary licence and includes vehicles like buses, rickshaws, autos, etc.
- Goods-carrying Vehicle Insurance: Heavy vehicles that carry goods from production to consumption facilities are covered under this category of commercial vehicle insurance plans, including trucks, lorries, etc.
- Other Specialised Vehicle Insurance: This plan covers some special vehicles, such as tractors, forklifts, excavators, etc., that are specifically used in the commercial sector.
Important Things to Consider When Buying Truck Insurance
Here is the list of some essential things that must be kept in mind when buying commercial truck insurance:
- Coverage: Understand the terms and conditions of the plan to determine whether the insurance policy covers your truck’s needs and requirements. Some common inclusions for goods-carrying vehicles include protection against fire, accident, theft, natural disasters, personal accidents, and much more.
- Exclusions of the Plan: Certain features, like drunk driving, driving without a valid DL, etc., are not covered under the plan. You must also inquire about the other exclusions to ensure a hassle-free claim settlement.
- Documentation Requirements: Be aware of the necessary documentation needed to purchase goods-carrying vehicle insurance for your truck, such as vehicle registration, driver’s license, and any additional permits or certifications required by your insurance provider.
- Factors Affecting Premium Cost: To get the best coverage without paying much for your premium costs, you must understand factors like the type of plan chosen, the geographical limit of the truck, the presence of safety equipment, etc. These factors may hugely alter the premium costs.
- Claim Settlement Procedure: You must be well-versed in the claim settlement procedure to make smooth claims for your commercial vehicle insurance policy in case of a mishap. For better clarity, you can enquire about the procedure with your policy provider.
Important Things to Consider When Buying Bus Insurance
Here is a list of things to note when buying passenger-carrying vehicle insurance for your bus:
- Inclusions: You must analyse the inclusions offered under your commercial vehicle insurance policy to understand its features and then make the required claims accordingly. Some common inclusions include towing disabled vehicles, third-party loss, personal accidents, and thefts.
- Exclusions: Knowing your exclusions makes the claim-settling procedure easier and smoother, as they clarify the plan’s coverage. Some of the exclusions for a passenger-carrying vehicle include contributory negligence, drunk driving, driving without a valid DL, etc.
- Policy Type: To choose the appropriate passenger-carrying vehicle insurance policy, you must know the packages the insurance company provides. Standard packages usually come with more benefits than liability-only packages. You can also look for add-on covers with your basic insurance policy.
- Renewal Procedure of the Policy: You must be well-versed in the renewal procedure of your commercial vehicle insurance plan to renew it on time without any issues. The renewal procedure also allows for restructuring the plan and making it customisable.
- Premium Costs: Certain factors affect the premium costs of your commercial vehicle insurance plan, such as the IDV (Insured Declared Value) of your vehicle, the number of seats in the bus, the miles driven by the vehicle, the experience of the driver, and much more. Depending on these factors, you must calculate the premium costs to get maximum coverage with fewer monthly payments.
It is essential to hold a comprehensive commercial vehicle insurance plan for your business, as it offers much-needed economic backing in case of an unforeseen event or emergency. Various factors may affect the plan’s features, and therefore, you must go through the plan details thoroughly to get the most out of the policy for your commercial vehicles.