Commercial vehicles are prone to sustaining early wear and tear. While some commercial vehicles may sustain more damage than others due to road risks, easy damage with early wear and tear remains a part of their shelf life. The financial impacts of such damages can get minimised for the vehicle owner with the help of a commercial vehicle insurance policy. 

These insurance plans are easily available today, with their benefits extended to a wide variety of everyday risks for commercial vehicles. Before purchasing commercial vehicle insurance online, it is critical to be aware of its essential benefits, its working, claim processes, exclusions, and limitations. Here’s a quick guide to help you know all of that.

What is Commercial Vehicle Insurance?

A commercial vehicle insurance policy refers to a customised plan for covering various road-related risks and damages these vehicles are prone to sustaining or may cause. The losses as well as damages that the vehicle owners may suffer, which are covered under this policy, prevail across the likes of accidents, natural calamities, human-made causes, or collisions. Some insurance policies also provide coverage for personal accidents of the owner-driver of the vehicle. The mandatory third-party liabilities are also covered under these plans. 

These insurance plans may be available under names like taxi insurance, auto-rickshaw insurance, commercial van insurance, bus insurance, and truck insurance.

The essential types of insurance for vehicles used for commercial purposes include:

• Third-party liability cover
• Own damage cover

Also, the vehicles for which these policies can be purchased have been characterised under the following heads.

• Goods vehicles
• Passenger vehicles
• Special commercial vehicles

Common Coverage & Benefits Under a Commercial Vehicle Cover

The common coverage available under such policies has been listed below.

• Coverage for damages related to accidents or vehicle collisions
• Theft or robbery of the vehicle or its parts and damage caused due to a break-in (like broken windows or damaged door locks)
• Natural calamities like cyclones and earthquakes that cause damage to the vehicle
• Damages and losses claimed and sustained by a third party
• Fire causing loss or damage to the commercial vehicle

Common benefits you can avail of with commercial vehicle insurance include the following.

• The policyholder suffers no financial burden as he/she receives coverage for the losses sustained as per the policy document.
• Any claim-free term also earns the policyholder a No Claim Bonus that helps bring down the policy premium at the time of renewal.
• Under third-party coverage of these policies, expenses like legal and lawsuit fees emerging out of third-party claims are also covered.
• The policy premium can be claimed as business expenses in the financial books and can also be claimed as a rebate during tax filing.
• Cashless claims eliminate the need to keep liquid money ready for emergencies.

Exclusions to a Commercial Vehicle Cover

Common exclusions applicable to such policies include the following.

• Under third-party commercial vehicle policies, no own damages are covered
• Damages sustained when driving under the influence of any drug/alcohol and/or without a licence
• Damages resulting from driver’s negligence are excluded
• Nuclear peril and war-related damages are also excluded
• Mechanical or electrical breakdowns are not covered
• Any other losses outside the coverage limits are not covered

Today, various insurance providers offer commercial vehicle insurance online, which you can compare before making your policy purchase decision. When purchasing the policy, you can also consider various factors that bring down your policy cost. These factors include choosing a suitable plan that meets your requirements without exceeding your budget and eliminating unnecessary add-ons.