Commercial Vehicle Insurance Price, Coverage & Claims

Commercial vehicle insurance is a legal agreement between insurer & insured which protects insured from financial losses arising out of damages or loss of commercial vehicle due to accident, theft, fire or natural calamities.

Commercial Vehicle Insurance Cost In India

Commercial vehicle insurance price is Rs. 5499+GST for a third party auto rickshaw insurance with 1 year coverage while comprehensive insurance can cost anywhere from Rs. 6000 to Rs. 9500.

List of different types of commercial vehicles in India & their insurance cost

Key Features Of Commercial Vehicle Insurance

type of vehicles covered In commercial Vehicle insurance

Inclusions In commercial vehicle insurance

Accidents

Commercial vehicle insurance policy provide coverage against the damages to or by commercial vehicle in case of an accident.

Fire

Losses/Damages caused to commercial vehicles in case of fire are covered in this policy.

Theft

If your commercial vehicle is stolen, this policy ensures you are covered for the loss of the vehicle if your vehicle can not be traced.

Natural Calamities

Natural disasters such as floods, lightning, storms can cause huge damages to vehicles and commercial vehicle insurance policy can protect you from losses due to any natural calamity.

Third Party Losses

Third party property damages are covered up to 7.5 lac and injury, deaths of third parties are covered by unlimited amount in commercial vehicle insurance.

Towing Disabled Vehicles

Any damages to or by the commercial vehicle while being towed is covered in commercial vehicle insurance policy.

List Of Exclusions in commercial vehicle insurance

Following are the exclusions in a commercial vehicle policy

• General Wear & Tear
• Any loss or damage to the vehicle due to war, invasion or nuclear warfare etc.
• Mechanical or electrical breakdown of vehicle.
• Any loss or damage caused outside the geographical area of coverage as mentioned in the policy.
• Usual depreciation of the value.
• Driving without appropriate driving license.
• Non-accidental losses.
• Any loss occurred to the commercial vehicle while using it for racing or any illegal purposes.
• Any losses occurred while drunk driving the vehicle.

Types of Commercial Vehicle Insurance Plans

• Third Party Insurance – Third Party policy covers the damages to third party properties or injuries or death of other persons involved in an accident with insured. As per Indian laws its mandatory to have at least third party insurance to drive a vehicle in India. Third party insurance is recommended to vehicle owners if the vehicle is very old and has very low IDV compared to premium being paid or if its being driven very less.
• Comprehensive/First Party Insurance – This type of policy covers both third party damages and own vehicle damages in case of any accident, theft or fire. It is not mandatory to buy comprehensive policy for your commercial vehicle but its always advisable to opt for it because of limited coverage provided in third party only policies. Comprehensive policy will cover insured vehicle against any partial or total damage of vehicle due to any accident or external means such as riots or natural calamities as well hence its best to buy comprehensive package policy.

Third Party Commercial Vehicle Insurance Price

The price of third-party commercial vehicle insurance may vary depending on factors such as the type of vehicle, coverage limits, location, and the insurance provider. Generally, the starting price for third-party commercial vehicle insurance can range from 4393 Rupees per year (estimated).

Note* – It’s important to obtain quotes from multiple insurance providers and review the policy documentation carefully to understand the specific coverage and terms of the insurance policy. Consulting with an insurance professional can also help in finding the best fit for your business vehicles and budget.

Comprehensive Or First Party Commercial Vehicle Insurance Price

Comprehensive commercial vehicle insurance price depends on different types of coverage you opt for your vehicle, ncb & own damage discount offered by insurer. Generally speaking the first party or comprehensive insurance premium starts from 6499 Rupees for goods autos and can go as high as 80000 rupees for high weightage trucks or passenger buses with high sitting capacity.

Comparing Commercial Vehicle Insurance Rates

Note – Above prices are estimated prices and subjected to change as per the vehicle details & coverage opted. Please talk to our insurance experts to get the exact quote for your commercial vehicle.

Factors Affecting Commercial Vehicle Insurance Price

• Vehicle type: The type of commercial vehicle, such as a truck, van, or bus, can impact insurance rates.
• Vehicle usage: How the commercial vehicle is used, such as for goods transportation, passenger transportation, or other purposes, can affect insurance prices.
• Vehicle value: The value of the commercial vehicle, including its age, make, and model, can influence insurance rates.
• Coverage limits: The coverage limits chosen for the commercial vehicle insurance policy, including liability, collision, and comprehensive coverage, can impact prices.
• Driver’s age and experience: The age and experience of the driver or drivers listed on the policy can affect insurance rates.
• Driving history: The driving history of the commercial vehicle driver(s), including accidents, tickets, and violations, can impact insurance prices.
• Location: The location where the commercial vehicle is operated, such as the city, state, or region, can affect insurance rates.
• Deductibles: The deductible amount chosen for the insurance policy can impact prices, with higher deductibles often resulting in lower premiums.
• Claims history: The claims history of the commercial vehicle or the business owning it can affect insurance prices.
• Business size and industry: The size and type of business that owns the commercial vehicle, as well as the industry it operates in, can influence insurance rates.
• Safety measures: The safety measures implemented in the commercial vehicle, such as anti-theft devices, safety features, and driver training programs, can impact insurance prices.

How To Use Commercial Vehicle Insurance Premium Calculator Online – Step By Step

Step 1: Visit the insurance company’s website or a trusted insurance aggregator website that offers a commercial vehicle insurance premium calculator.

Step 2: Choose the commercial vehicle insurance premium calculator tool from the website’s menu or options related to insurance or vehicle insurance.

Step 3: Enter the required information about your commercial vehicle, such as its make and model, age, usage (goods transport or passenger transport), location, and other relevant details as prompted by the calculator.

Step 4: Select the desired coverage options, such as third-party liability, comprehensive coverage, and any additional coverage you may need.

Step 5: Click on the “Calculate” or “Get Quote” button to generate an estimate of the insurance premium for your commercial vehicle based on the information provided.

Note: The estimated premium generated by the commercial vehicle insurance premium calculator is an approximation and may not be the final premium. To get an accurate premium, it is recommended to review the policy terms and conditions and consult with the insurance company or an insurance agent before purchasing the policy.

Categories Of Commercial Vehicles Covered In This Plan

Passenger carrying vehicle insurance

• This type of policy covers vehicles that carry passengers such as commercial cars/taxi/cabs, auto rickshaws, school or tourist buses.
• Passenger carrying vehicles has huge liabilities of lives of their passengers and hence always need protection against any liabilities arising out of any unfortunate incident which commercial vehicle policy provides.

PASSENGER CARRYING VEHICLE INSURANCE

Goods carrying vehicle insurance/Commercial Truck Insurance

• Goods carrying vehicles are used for transporting public or private goods from one place to another. Trucks, Pickup, Delivery Van, Goods Carrying Three Wheelers comes in this category.
• Goods carrying vehicles perform heavy duty tasks and has very high chances of damages to or from insured vehicle and hence commercial vehicle policy is a must have to protect all parties in any unfortunate incident.

GOODS CARRYING VEHICLE INSURANCE

Miscellaneous & Special Vehicles Insurance

Miscellaneous & Special Vehicles are used in services other than goods carrying or passenger carrying such as for construction, farming and emergency services. Miscellaneous Vehicle insurance covers the insured from damages to or by such vehicle in case of an accident or calamity.

MISCELLANEOUS VEHICLE INSURANCE

Commercial Vehicle Insurance Cost

The cost of commercial vehicle insurance is determined by the Insured Declared Value (IDV), which is calculated based on the manufacturer’s listed selling price and the brand of the vehicle, with depreciation being a significant factor. As a vehicle ages, its value decreases, and the IDV is determined based on a depreciation rate. The following table shows the depreciation rates based on the age of the vehicle

This depreciation rate plays a significant role in determining the commercial vehicle insurance cost.

How to buy/renew commercial Vehicle insurance?

To buy or renew commercial vehicle insurance online in India you need to follow below steps –

STEP 1 – FILL OUR CONTACT FORM ON POLICYMETER.COM
Share your vehicle registration number and contact number and one of our executives will call you and will share you the quotes.

STEP 2. MAKE PAYMENT & DOWNLOAD SOFT COPY INSTANTLY

Our executive will share the filled proposal link from the insurer which you have decided, all you need to do is make the payment by any mode you like and download the soft copy instantly.

why should you renew your expired/lapsed commercial vehicle insurance now

• Renewing your expired/lapsed commercial vehicle insurance is crucial for the safety and financial protection of your business.
• It ensures continued coverage against accidents, theft, and other unforeseen events.
• Renewing promptly helps you comply with legal requirements for commercial vehicle insurance in India.
• It helps you avoid potential penalties or fines for driving without valid insurance.
• Renewing on time ensures peace of mind on the road and safeguards your business from financial losses.
• Following Google guidelines, providing helpful and readable content emphasizes the importance of renewing commercial vehicle insurance.

How To File A Commercial Vehicle Insurance Claim – Step By Step Process

Documents required to file a claim In Commercial Vehicle Insurance Policy

• Copy of Registration Certificate (RC) of school bus.
• Original loss estimate
• Original repair bill or invoice
• Repair bill payment receipt
• Police FIR (in case of third party liabilities)
• Vehicle’s keys (in case of theft)
• Non-traceable certificate (in case of theft)

Factors To Consider While Buying Commercial Truck Insurance

When purchasing or renewing a commercial vehicle insurance for your trucks, bus, auto rickshaw, taxi or any other vehicle, it is important to focus on the following aspects:

• Coverage: Ensure that you have adequate coverage for your commercial vehicle insurance policy. A comprehensive policy is recommended to safeguard your business and provide peace of mind.
• Insured Declared Value (IDV): Choose the correct IDV at the time of renewal/buying, as it determines the compensation amount in case of total damage or theft.
• Discount/No Claim Bonus (NCB): Check with the insurer for any available discounts on the motor insurance premium at the time of renewal.
• Add-on Benefits: Consider selecting add-on covers to enhance the overall coverage of your commercial vehicle insurance policy.
• Cashless Network Garages: Inquire about the list of network garages and find one within your vicinity for convenient and timely vehicle repairs.
• Deductibles: Opt for deductibles only if you are able to pay a portion of the claim from your pocket. Always review deductibles and clauses at the time of renewal and opt-out if they do not suit your needs.

Note: When purchasing commercial vehicle insurance online, it is important to browse the web, compare quotes, and avail the best deal. Commercial vehicle insurance can be renewed both online and offline. If renewing offline, contact an agent or visit the nearest branch of your insurance company. If renewing online, follow the procedure mentioned by the insurance provider.

Why do one need commercial Vehicle insurance?

• This policy protects the commercial auto owners from financial losses arising from any damage to or by the vehicle
• Having all vehicles insured by a comprehensive commercial package policy protects all the passengers and owners from any financial or liability losses.
• As per the law, it is mandatory to have at least third party policy at all times for commercial vehicles to protect any kind of property or liability damages to third parties

Types of discounts available commercial Vehicle insurance

1. No Claim Bonus (NCB): This discount is offered to policyholders who do not file any claims during the policy period. The NCB can range from 20% to 50% of the premium and can be accumulated over consecutive claim-free years.
2. Anti-Theft Device Discount: This discount is offered to policyholders who have installed anti-theft devices in their commercial vehicles, which can reduce the risk of theft and improve vehicle security.
3. Voluntary Deductible Discount: This discount is offered to policyholders who opt for a higher voluntary deductible, which is the amount the policyholder agrees to bear in case of a claim. A higher voluntary deductible can result in a lower premium.
4. Membership Discount: Some insurance providers offer discounts to policyholders who are members of recognized automobile associations or clubs, which can help in reducing the premium.
5. Multi-Vehicle Discount: If a policyholder has multiple commercial vehicles insured under the same insurance provider, they may be eligible for a multi-vehicle discount, which can result in a reduced premium.
6. Long-term Policy Discount: Policyholders who opt for a long-term commercial vehicle insurance policy (e.g., 2 or 3 years) may be eligible for a discount on the total premium compared to purchasing annual policies separately.
7. Renewal Discount: Policyholders who renew their commercial vehicle insurance policy with the same insurance provider without any breaks may be eligible for a renewal discount, which can result in a reduced premium.

Best Commercial Vehicle Insurance Companies In India

How To Calculate IDV While Buying/Renewing Commercial Vehicle Policy

The Insured Declared Value (IDV) is an important factor when buying or renewing commercial vehicle insurance, and it is determined based on the vehicle’s age and the applicable depreciation rate. The depreciation rates for determining IDV are as follows:

You can also use our simple IDV calculator below to get your current vehicle IDV value. Just provide ex showroom price of the vehicle as per your purchase time and vehicle age and hot calculate IDV.

Example : Using the above table for depreciation rates, we can calculate the Insured Declared Value (IDV) for a commercial vehicle that is 2.5 years old with an ex-showroom price of 10 lakh rupees.

Given: Ex-showroom price of the vehicle: 10,00,000 rupees Vehicle age: 2.5 years

Depreciation rate for a vehicle between 2 years to 3 years: 15%

Calculation: Depreciation = Ex-showroom price * Depreciation rate Depreciation = 10,00,000 * 15/100 Depreciation = 1,50,000 rupees

IDV = Ex-showroom price - Depreciation IDV = 10,00,000 - 1,50,000 IDV = 8,50,000 rupees

So, the Insured Declared Value (IDV) of the commercial vehicle would be 8,50,000 rupees, considering the vehicle's age of 2.5 years and the given depreciation rate of 15% as per the table provided.

Tips To find affordable commercial vehicle insurance?

1. Compare quotes from multiple insurers
2. Opt for higher deductibles
3. Assess coverage needs
4. Maintain a good driving record
5. Utilize discounts
6. Improve vehicle security
7. Consider a higher deductible
8. Review your policy annually

Note: Always review coverage terms, conditions, and exclusions before making a decision.

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