A commercial vehicle insurance policy is a particular type of auto insurance designed to cover losses and damages to or incurred by a commercial vehicle and its owner-driver. It might cover losses and damages from mishaps, collisions, natural disasters, fires, etc. All firms must purchase commercial vehicle insurance for their fleets of vehicles, including taxis, school buses, tractors, commercial vans, and trucks. An online application called the IDV Calculator makes calculating IDV easy. This calculator calculates the market value of your car and provides a recommended car insurance premium range.
Why is commercial vehicle insurance necessary?
It is imperative to obtain commercial vehicle insurance if your company owns one or more vehicles. This insurance will financially shield and defend your company from any losses and damages brought on by your vehicle(s), its users, and other third parties.
Commercial vehicle insurance can ensure your stakeholders and passengers that they will always be protected and covered if your primary line of business involves using cars, such as a regular taxi service or a private school bus.
It is required by law that you, at the very least, have a Liability Only coverage in place, which covers third parties against any losses and damages that your business vehicle may cause. You can check car insurance to avoid the penalty.
What does commercial vehicle insurance cover?
- Accidents – Damages brought on by collisions to commercial vehicles.
- Theft: Loss or damage brought on by stealing a business vehicle.
- Fire: Damages brought on by fire to the commercial vehicle.
- Natural catastrophes – Damages to the commercial vehicle brought on by any calamity of the natural world.
- Personal accident: When a commercial vehicle accident results in the driver’s injuries or death.
- Losses to Third Parties – Any harm done to a third party by the commercial vehicle.
- Disabled vehicle towing – Any harm done to the vehicle being towed by the commercial vehicle.
What is not included?
Equally crucial is understanding what your commercial vehicle insurance policy does not cover so that there are no unpleasant surprises when you file a claim. As examples, consider the following:
In the case of a Third-Party Liability Only Policy, losses to the policyholder’s vehicle are not covered.
If the owner-driver of the alleged car is intoxicated or operating the vehicle without a legal license.
Contributory negligence refers to any damage resulting from the driver’s carelessness (for example, driving through a flood already there).
Damages not directly caused by an accident or natural disaster are consequential damages. Consequential losses include loss of earnings, loss of market, etc.
Commercial Vehicle Insurance offers extras.
- Consumable Cover:Â Consumable covers will provide additional protection for your commercial vehicle. In an accident, it will cover the expense of small parts for your car, such as screws, engine oil, and grease.
- Parts Depreciation Protect – Due to wear and tear, your vehicle’s parts may lose value over time. This amount is often subtracted from any claims. This add-on ensures that, in the event of an accident, any replaced vehicle parts (such as rubber or fiberglass) would be compensated for Depreciation.
- Engine and Gear Box Protect – In a collision, your car’s engine or gearbox can sustain damage from water ingress or lubricating oil leaks. The consequential damages that result from the accident (but because of it) will also be covered by this add-on, such as engine damage from hydrostatic loss, which is not covered by a standard policy.
- Roadside Assistance, also known as Breakdown Assistance – Everybody occasionally needs a little help! With our breakdown support add-on, you will receive assistance around-the-clock whenever your car breaks down while driving, whether because of an accident, flat tires, a failing battery, or something else.
- Engine and Gear Box Protect – In a collision, your car’s engine or gearbox can sustain damage from water ingress or lubricating oil leaks. The consequential damages that result from the accident (but because of it) will also be covered by this add-on, such as engine damage from hydrostatic loss, which is not covered by a standard policy.
- Protection from EMI – If your vehicle is financed and is involved in an accident, it will need to be repaired, which could result in a loss for your Company. You will receive recurring payments through this add-on to be made to the financier of the car listed in our records.
- Invoice – Passenger Carrying Vehicle – Return – The policyholder will get compensation under this add-on protection if the insured vehicle is a total loss, constructive loss, or stolen. The settlement might be paid in the form of a new car at the current ex-showroom price or If the same brand, model, or variant is no longer available. The difference between the latest available Ex-Showroom Price and the claim payable under the OD section of the Base Policy will be the extent of the Company’s liability.
- Replacement of keys and locks for passenger-carrying vehicles – Sometimes the lockset on the car needs to be changed, and other times the keys get lost or forgotten. This add-on cover aids the policyholder in receiving compensation for the price of replacing the insured vehicle’s locks and keys, installing a new lockset, etc., in such circumstances.
