Types Of Commercial Vehicle Insurance Policies

Commercial vehicles are automobiles that are driven to conduct business. Commercial vehicles provide subsistence for some people, while for others, these vehicles are an essential component of their enterprise, and they would only be able to generate a profit from their company in the absence of their use.

Commercial vehicles include many motor vehicles, including those that transport passengers or goods, tractors, vans, taxis, and cranes.

However, if you want to ensure everything runs smoothly in your company, you must purchase a commercial car insurance policy that covers your commercial vehicle. The purchase of a policy for insurance on a commercial vehicle gives you peace of mind and protects you from having to deal with any financial or legal complications.

Different kinds of insurance for commercial vehicles –

  1. Third party insurance:

As per the motor vehicles act 1988, every vehicle owner, including the owner of a commercial vehicle, must insure his vehicle with third-party insurance. This includes both private and commercial vehicle owners. The policy owner is protected from any potential legal liabilities that may arise from damage caused to the person or property of a third party by this type of insurance.

This kind of property insurance policy for commercial vehicles does not include any benefits for the vehicle itself and only covers liability to third parties. In the event of the third party’s demise or total and permanent disability, they will receive full compensation.

  1. Comprehensive insurance:

This is a form of commercial vehicle coverage that is not required by law and can be purchased voluntarily by the policyholder. However, it is wise to insure the vehicle with a comprehensive policy. This policy covers damage caused to your car and damage driven to a third party’s property or vehicle.

Your vehicle will be protected from damages caused by both natural and man-made disasters if you purchase this liability insurance policy. In addition, it protects the policyholder from the policyholder’s third-party liability if the insured vehicle causes demise, injury, or property damage to a third party.

Inclusions in commercial insurance policy –

  • Coverage against damage caused to the vehicle as a result of an accident, theft, explosion, terrorism, strike, earthquake, flood storm, and other perils are all included in the coverage provided by commercial vehicle insurance policies.
  • This type of workmen compensation insurance includes coverage for third-party liability, also known as providing compensation to a third party for damages, bodily injury, or unfortunate demise.

Exclusions in commercial vehicle insurance policy –

  • This insurance coverage does not extend to depreciation, which is one of the significant exclusions in the policy for commercial vehicles.
  • Electrical and mechanical failure are not covered under this policy.
  • It does not offer coverage if one is found driving under the influence of alcohol or has been driving without a current driver’s licence.

The factors that affect the premium –

The following are the most significant aspects that may influence to the overall calculation of your commercial car insurance premium:

  • The age of the vehicle
  • Subclass: GCV, PCV, Tractor, and Others
  • Fuel type
  • Make and model
  • Declared amount of insurance coverage
  • Where the registration will take place

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


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