Commercial Vehicle Insurance Quick Read

Key Differences Between Truck and Car Insurance

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If you are a private or a commercial vehicle owner, then you must be knowing that similar to automobile registration, it is essential to procure insurance policies for the safety and security of your automobile. However, whenever we talk about truck vs car insurance, many fleet owners remain confused about the risk covered and differences between both these types of insurance policies.

In spite of bearing numerous similarities among private and commercial vehicle insurance, there are a few critical differences between both these policies. The risk covered in truck insurance compared to a car is far higher, and correspondingly, there are also differences in premium value for private and commercial vehicles. Have a look at the main differences between these two types of insurance policies in detail.

What is private car insurance?

Before going into the details of private car insurance, it is essential to have a clear concept about the meaning of private automobiles. This group includes all vehicles used for undertaking personal or family rides, and the gross vehicle weight of these automobiles should not exceed 7500 kg. The Motor Vehicles Act, 1988 made it compulsory for all private vehicles plying on Indian roads to be under the insurance coverage. It helps in covering loss or damage of vehicles and third party liability for bodily injuries of riders during an uneventful car accident.

What is truck insurance?

Trucks or goods carriers are used by transporters and traders for delivering consignment from the source to the place of delivery. These commercial vehicles help in the development of the economy of a nation by timely delivery of raw materials at factories and finished goods to the market. Now, during long-distance voyages, trucks get exposed to various risks like accidents, natural calamity, thefts, and accidental breakdown. The commercial vehicle insurance, in such a situation, would help you in taking care of the surprise costs incurred in repairing the goods carrier. This insurance policy ensures that business runs uninterrupted, even if they meet any sudden hindrances.

What are the key areas where truck insurance proves useful for transporters?

Fleet owners should always purchase commercial vehicle insurance if they are dealing with the delivery of frozen food, construction materials, automotive parts, livestock movement, and container hauling. These are fragile and high-value products. Accidental damage of these consignments due to theft or road crashes can lead to a hefty loss in business.

Truck vs Car Insurance: Key Differences

Now, since we have already gained a comprehensive idea about the meaning of truck and private car insurance, let us go into the details of the key differences between these two types of policies.

Risk Coverage

In general, private car insurance provides coverage against liability, third party, natural calamity, and human-made interruptions. Under liability, the repair cost of the vehicle and medical bill expenses of the insured gets covered. Third-party coverage takes care of legal responsibilities to the third party in case of property damage, bodily injuries, or loss of life. Natural calamities include protection against a storm, flood, lightning, earthquake, and landslide. The human-made interruption involves theft, accidental damage during a collision, and vandalism.

In case of truck insurance, in addition to the above protection, you also get coverage against theft of goods transported in goods carriers and injuries or death of employees who were present in the vehicle at the time of the accident, burglary, or natural calamity.

Cost of Purchasing the Insurance

The cost of the insurance policy depends on several factors, including the price of the vehicle, gross vehicle weight of the automobile, nature of the journey, and associated risks while plying on roads. Since the cost of most heavy-duty trucks is much higher than standard Indian cars, the cost insuring those goods carriers is also higher than private vehicles.

Moreover, the risk coverage in commercial vehicles is far higher than the risk involved in driving private cars. So, it is evident that you need to spend a higher pay-check while purchasing truck insurance. However, since trucks are prone to accidents and third party liability, it makes sense in buying the insurance policy to lead a stress-free life.

Documents Required for the Insurance Policy

While purchasing an insurance policy, you need to submit a duly filled insurance claim form mentioning the engine and chassis number of the vehicle along with the type of insurance. Additionally, you also need a copy of the registration certificate of the car, driving license of the driver, and identity and residential proof of the automobile owner. In the case of commercial vehicle insurance, you require almost the same type of documents as private car insurance.

However, here more emphases are given on the nature of the truck (LCV, HCV, container, tipper, or special-ability goods carrier), gross vehicle weight of the cargo carrier, LCC or licensed carrying capacity of the truck and nature of cargo usually transported through the vehicle.

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Also read: How to Calculate Heavy Truck Insurance Premium and File a Claim

Also read: A Guide to Commercial Vehicle Third Party Insurance