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Vehicle Insurance For Commercial Vehicles: 5 Things You Need To Know

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Vehicle Insurance For Commercial Vehicles: 5 Things You Need To Know

Are you a commercial vehicle owner looking for the best insurance deals with minimum premiums and maximum coverages?

Do you know how you can save a lot of money on your vehicle insurance without having to compromise on your safety?

Have you tried comparing vehicle insurance premiums, types of policies, and the safety net across multiple companies?

As someone that has been related to the commercial vehicle sector for the past five years, I can tell you that insurances are one of the most important pressure points for the business.

Most transport and delivery operators feel that skimming on insurance premiums can help them save money. However, this is a mistake that should be avoided at all costs. In this article, we look at five things you should know when it comes to vehicle insurance for commercial vehicles.

Why is Insurance Important for Commercial Vehicles?

When it comes to the transportation business and industry, commercial vehicles are its products. We know how commercial vehicles are always on open and distant roads, facing different types of dangers like thefts, stealing of parts, burglaries of goods being transported, robbery of the vehicle itself, and so on.

In such cases, insurance is extremely necessary to ensure that the commercial vehicle owner can get their damages covered and minimized as the case may be.

Most countries and their law enforcement authorities take vehicle insurance as a road policy very strictly. This is because insurance is aimed at not only covering not only your damage but also providing relief to someone who has been injured in the accident.

You can get slapped with hefty fines, penalties, and even cancellation of permits and licenses if your vehicle is not insured routinely.

List of 5 Things you need to know about Insurance for Commercial Vehicles

  1. Insurance Premiums, Policies, and Coverages differ-

A standard Google search on compare minibus insurance is likely to throw up thousands of results. You need to understand that the first search result might not be the best! This is why commercial vehicle owners should always look to compare insurance products on aggregator platforms. This allows them to get more insights into the premiums, policies, and coverages.

  1. Things that are not Included in Commercial Vehicle Insurance-

You might be forgiven for thinking that the coverage for private vehicles and commercial vehicles is one and the same. However, the fact of the matter is that it is not. Things like normal and regular wear and tear, electrical failures and mechanical breakdowns, or loss to a vehicle based on nuclear damage are not covered!

  1. The Process of Documentation is Rigid and Intensive-

Commercial vehicle insurance paperwork is quite a challenge. This is because the risks and the pay-outs in the insurance money are so huge that companies want to double down on the paperwork. You will need everything in order, signed and attested by your RTO. You will also be required to take care of violations so that you are not assessed in the high-risk category.

  1. Reporting the Claims Procedure and Availing the Claim-

The most important thing to do is to report the damage that has taken place immediately. The more you wait, the level of suspicion of the company with regard to insurance fraud will grow. It is important to immediately report it and then furnish your driver’s license and registration details to get the process started. You can go for both cashless and non-cashless options.

  1. Insurance Premiums on Commercial Vehicles is higher-

There is a simple reason for the same. Commercial vehicles are more prone to getting into accidents or stolen as they spend most of their time on roads and highways. This is why insurance companies command a significantly higher premium on them as compared to private vehicles in all parts of the world.

The Final Word

If you are the owner of a commercial vehicle, it is always advisable that you weigh your insurance options before selecting the provider. Reading reviews online can also help you understand the kind of pay-outs that the company is known for.