Insurance is an important requirement for every vehicle registered in the country, be it a commercial or private one. Apart from being mandatory compliance, it also ensures any damage to your car is covered under this insurance cover.
Be it any type of vehicle, a motor insurance policy always comes handy. Whether it is an unfortunate mishap injuring any other person or your own self. Not only that, but damage to your vehicle is also included under the comprehensive policy.
Now it comes to deciding which type of insurance should you buy?
With the ease of buying motor insurance online, it has become an uncomplicated process to get the right insurance policy. For any insurance you buy, you need to head over to the insurer’s website and select from the available policies. The insurance plans for private as well as commercial vehicles differ due to their usage. A commercial vehicle that shuttles goods or passengers operates far more than a personal car.
For this reason, the insurance needs differ too. Let us understand what commercial and private insurance imply.
Commercial Car Insurance
In case your business relies heavily on the physical movement of either people or material, you must purchase commercial vehicle insurance. Damages to your vehicle shall be insured under this cover. Events like accidents, theft, loss to other people or vehicles are included under this insurance.
Private Car Insurance
Private car insurance, on the other hand, insures cars that are used for personal purposes. Any theft, injury to person or property is covered under this insurance cover. Every non-commercial car owner is mandatorily required to purchase car insurance, as per law, as well as, in their own interest.
Let us look at the areas where a commercial insurance cover differs from a private insurance cover.
Both policies are charged differently depending on the different coverage they offer. A third-party commercial vehicle policy covers a broad risk and is charged more than a private car policy. Further, the cubic capacity of your engine influences the premium rates.
Coverage of your policy
Commercial vehicle insurance generally covers the driver and the passengers as well. The policy ensures the policyholder, as well as its passengers, are safe in case of an unfortunate accident. Private insurance provides a financial cover to the policyholder as well as any third-person. This coverage will vary depending on the type of policy opted, i.e. third-party insurance or comprehensive insurance cover.
Risk under your policy
Since commercial vehicles tend to span thousands of kilometres within a single journey, the risk involved is higher for the insurer. The same is not the case of a private vehicle. The usage is far lower than a commercial vehicle reducing the risk. The risk to your insurance policy influences the deductibles as well as premium amounts.
What are the mandatory covers to be opted for?
A commercial vehicle requires the owner to opt for a third-party liability cover, cover for its passengers along with an insurance cover for its driver as mandatory. On the flip side, a private car requires only third-party insurance as compulsory.
Depending upon your need and the type of vehicle, you must select the right insurance cover for your car. Whether a commercial car or private one, any damage will cause a hole in your pocket and can be avoided using the right motor insurance policy.