Insurance is an effective tool to cover your financial losses when your car ends up damaged due to an accident or any other mishap. Whether your car is for personal use or for commercial activities, motor insurance is required to protect your car from the potential of damages or loss. Ideally, your car insurance policy should be based on the vehicle’s risk factors. That is where the difference between coverage for private vehicles and commercial vehicles starts. A commercial vehicle is more than just a personal means of transport and requires special coverage for accidental loss or damage. It helps to know about the important aspects related to both Commercial Car Insurance and Private Car Insurance. Here are the difference between private and commercial 4 wheeler insurance:
What is private car insurance?
The motor insurance policy that is referred to as private car insurance is intended to cover cars meant for personal use. Own damage coverage and third-party liability coverage along with comprehensive insurance are considered strong coverage for your personal car. Here are the things covered by personal car insurance coverage through comprehensive insurance plan:
- Financial coverage for loss or damage caused by accident.
- Financial protection against theft, natural disasters, fires, and riots.
- Personal accident coverage for employer / driver.
- Third party liability coverage.
* Standard T&C Apply
What is commercial car insurance?
Commercial car insurance is a motor insurance policy that covers your car that is meant for use for business purposes. Taxis running in Indian cities are the best example of this. The type of insurance coverage under this category is slightly different because the risks faced by commercial vehicles are different than those of private vehicles. These accidents can cause damage to passengers, drivers or vehicles. Any of these three can adversely affect business and commercial vehicle owners need protection from them. Just like private car insurance, you can purchase commercial vehicle insurance online. Here is a list of things covered in commercial vehicle insurance:
- Financial protection for the policyholder business in the event of an accident or damage to a commercial vehicle.
- Coverage against vehicle damage due to theft, fire, and natural disasters.
- Personal accident cover for driver.
- Passenger cover option.
- Third party liability coverage.
* Standard T&C Apply
Buying commercial car insurance
Before you decide to buy commercial car insurance, it is important to compare different insurance policies. You can easily and hassle-free compare car insurance online by using car insurance premium calculator. Using a calculator helps with all future issues with the policy including motor insurance renewal. You can compare different car insurance quotes and understand their coverage and premiums. When choosing a car insurance policy, you should aim to get more coverage with lower premiums. It offers comprehensive coverage at competitive prices. Comparing insurance policies online can help you find the right amount of premium. Choosing the right premium is very important because it is an recurring expense.
*Standard T&C Apply
In addition to the premium, you should also consider other factors related to car insurance before choosing a policy. These factors include the amount of coverage to take, the Insured Declared value of the car, and the exclusions of the commercial car insurance policy.Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.
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