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How to get truck insurance: An overview
If you own a commercial vehicle like a taxi, bus, truck, or a tempo, then you must be knowing that it is imperative to insure it against all uncertainties on roads. This crucial policy helps in safeguarding damages incurred on the automobile during a collision, natural calamity, as well as vandalism. Timely purchase and renewal of commercial vehicle insurance offers you peace of mind and helps you to march ahead in business uninterruptedly even if you meet with a sudden hindrance. Continue reading to know all the details about truck insurance : from coverage to types to the benefits associated with it.
What are the different types of truck insurance?
In general, there are two types of truck or commercial vehicle insurance – Third-party coverage and Comprehensive insurance.
- Third-Party Coverage Insurance
Those opting for third-party commercial vehicle insurance get covered against bodily injuries or death of riders of other automobiles involved in the accident with your truck and third-party property damage during collisions.
- Comprehensive Commercial Vehicle Insurance
The comprehensive commercial vehicle insurance offers a maximum shield against all uncertainties on roads. It helps you to recover damages on your vehicle due to collisions, fire, explosion, earthquake, hailstorm, landslide, vandalism and terrorist activities. The comprehensive insurance also provides coverage against third party property damage, injuries or death, and protection against theft of your commercial vehicle.
Which automobiles are eligible for Commercial Vehicle Insurance?
Commercial vehicle insurance as the name suggests cover risks, especially for commercial automobiles, like taxi, buses, trucks, tractors, trailers, cranes, and containers.
What are the different types of coverage in Commercial Vehicle Insurance?
Many auto owners prefer customised coverage plans for their commercial vehicle insurance. To avail this opportunity, you need to have a detailed idea about the various types of coverage offered during vehicle insurance.
- Personal accident coverage helps in recovering expenses incurred on medical bills and hospital-stays of the driver of the commercial vehicle involved with a collision or accidental breakdown.
- Automobile insurance also offers coverage against loss or damage of the insured vehicle due to accidents, natural calamities, and human inflicted activities. It pays the bills for repairing the truck or buying a new truck if the one has undergone a collision beyond repair. Some insurance companies even offer towing coverage as an add-on claim.
- Third-party coverage protects against property damages or repair costs of other vehicles collided with your insured automobile. It also pays legal liabilities in cases of injury or death of the other driver.
- Comprehensive coverage includes protection against all the above circumstances along with safeguarding loss due to theft of the insured vehicle.
What are the benefits of purchasing Commercial Vehicle Insurance?
Have a look at the advantages of getting your trucks insured:
- It helps you to abide by the Motor Vehicles Act of India. In 1988, the Government made it mandatory for all vehicles plying on Indian roads to remain under insurance coverage.
- It assists you to carry on your business smoothly even if some members of your fleet undergo a collision or other forms of road mishaps.
- Commercial vehicle insurances from reputed companies offer hassle-free claiming processes.
- If you have obtained a bank loan for purchasing your commercial vehicle, then the insurance policy takes care of the remaining loan amount in times of thefts or major accidents when it is impossible to recover the truck.
What features are NOT covered in truck insurance?
In spite of having an extensive list of coverage in commercial vehicle insurance policies, there are some features which most insurance companies are unable to safeguard. To prevent confusions of auto-owners, here is a list of features not covered in automobile insurances.
- Damages due to accidents in different geographic locations (not mentioned in the policy).
- Wear and tear of commercial vehicles
- Road accidents due to drunken driving
- Damages of trucks due to the negligence of drivers (for example driving on flooded location)
- Mechanical and electrical breakdown of trucks
- Consequential loss
- Defacement of own vehicles if opted for a third-party insurance
- Accidents by drivers without a valid driving license
What factors do companies take into consideration while calculating the Commercial Vehicle Insurance Premium?
Detailed below are some of the factors which can affect your commercial vehicle insurance premium:
Model, Engine & Make of your truck
The risk associated with a commercial vehicle, like a truck, bus, or a taxi depends on the model, type of engine, and the make of the automobile. It is evident that the expenditure incurred on repairing a truck or a bus will be much higher than the repairing charges of a taxi. The year or manufacturing, present condition, and model of the commercial vehicle also determines the risk associated with it. Accordingly, the insurance company calculates the premium.
The geographical location in which the commercial vehicle will ply, play a considerable role in the chances of meeting with an accident. In general, automobiles running on hilly tracks and highways have a higher risk of collision.
If you have already owned an insurance policy and have not claimed any damages during the preceding year, then the company will offer you a ‘No-Claim Bonus” during the renewal of the plan in the succeeding year.
Type of Insurance Plan
The type of insurance policies plays a crucial role in determining the premium value. In general, the third-party coverage has a lower risk than the comprehensive plan, so that the premium will be higher in case of comprehensive policies.
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