Navigating the road with commercial vehicle insurance

Commercial vehicle insurance is an important aspect of any business that involves the use of vehicles for transportation purposes. Navigating the roads, no matter how cautiously, does not shield us entirely from unexpected accidents as it remains an ever-present threat. 

Commercial vehicle insurance steps in, not merely as a necessity but as a personal safeguard for your hard-earned assets. It covers a wide range of vehicles used for non-personal purposes, which include goods-carrying vehicles, passenger-carrying vehicles, and special types of vehicles used for specific purposes, such as tractors, excavators, cranes, road rollers, forklift, and agricultural vehicles such as harvesters, etc.

Safeguarding your business on the road 

Commercial vehicle insurance differs significantly from personal motor insurance, as it considers the unique risks associated with business operations and extends beyond the vehicle itself to protect the business’s interests. 

With emerging modern tech-inspired vehicle models in the markets, financial assistance offers peace of mind as even the slightest damage to the vehicle costs a fortune. That is where third-party insurance comes to your rescue. Mandatory in India, this type of insurance offers protection against losses incurred by a third party due to an accident. It includes bodily injury, fatal death, property damage and legal aid. 

In order to safeguard yourself from the financial liability on the road, liability insurance is essential. This type of insurance protects you from having to pay out of pocket for damages or injuries caused by an accident. It provides coverage for both property damage and bodily injury, ensuring that you are financially protected in case of any mishaps on the road.

Safeguarding from higher insurance rates 

Commercial vehicle insurance rates can significantly impact your business’s bottom line. To safeguard yourself from higher premiums, it is crucial to understand the numerous factors that insurers consider when determining your premiums. 

Driving history: One of the primary factors influencing your commercial vehicle insurance rates is your driving history. Insurers assess the risk associated with your driving behaviour, considering factors like accidents, traffic violations, and previous claims. 

Vehicle usage: The size and type of your commercial vehicle play a significant role in determining insurance rates. Insurers evaluate the purpose and frequency of vehicle usage, assessing whether the vehicle is used for local deliveries, long-haul transportation, or other specialised tasks.

Safety features: Equipping your commercial vehicle with advanced safety features and security measures can positively impact your premium. Anti-theft devices, GPS tracking, airbags, and other safety technologies demonstrate your commitment to reducing risks. Insurers may offer discounts for such proactive measures, emphasising the importance of investing in safety for both your business and your insurance costs.

Finding the right commercial insurer 

With a nuanced understanding of commercial vehicle insurance, selecting the right insurance provider becomes a strategic decision for your business. To find a reputable insurer look for providers with a solid reputation for reliability and customer service. Choose an insurer with a streamlined and fair claims process, ensuring they can fulfil their commitments in case of a claim. Additionally, ensure the insurance company is financially stable to ensure they can fulfil their commitments. 

When reviewing policies, prioritise coverage tailored to your business needs, including liability, physical damage, and cargo insurance. To conclude, driving while following road safety guidelines is a personal commitment and a collective responsibility to protect ourselves and others from irreversible harm. At the same time, having the right insurance contributes to a safer driving experience.

(The writer is Head – Underwriting, SBI General Insurance)