Why Commercial Vehicle Insurance is Important

Rishi, a budding entrepreneur, had set up an appointment with his good friend and business advisor Vicky, to discuss his start-up. He wanted to start a transport business, but wasn’t quite sure how to go about it. “Well, once your business contacts are in place and you’re sure about the vehicles you’ll be using, the next logical step is to make sure your vehicles have the proper insurance.”

Rishi was a little surprised. “I just thought that I’d get the most basic insurance necessary for any vehicle, because it is compulsory. After all, vehicle insurance can’t be that important, can it?”.

Vicky shook his head. “You won’t believe how many people think like that! Listen, the truth is that insurance is a very important part of the transport business.”

Why You Need Commercial Vehicle Insurance:

Rishi learnt about a separate branch of insurance called commercial vehicle insurance.
“Your daily bread and butter is dependent on the vehicles employed in your transport business. So you need to make sure you’ve got them well covered,” explained Vicky. He leaned forward. “If there was an accident and your vehicle was damaged, or if your car were to get stolen, you’d be in quite a soup!”

Having the right vehicle insurance could help in repairing the car. It could also cover any injuries sustained by the driver. Insurance could also include third party damages that occur in an accident.”

Vicky continued. “Look, in an accident, you might end up having to pay the medical bills for your own driver, as well as for the other driver. You might even have to pay to repair both the cars. Medical bills and repair damages like that could easily bankrupt you. These expenses could be covered by an insurance company instead.”

“Okay, so I need to get my vehicles insured against as many things and situations as possible,” said Rishi. He thought hard for a moment, then looked up and said, “But how do I do it?”

How You Can Get the Right Insurance:

Contacting multiple agents could help you compare different policies offered by different companies. You get different rates depending on the vehicle type, the vehicle’s intended use and so on. You can narrow down which companies and policies you think might suit you best.

Vicky advised, “When looking at potential insurance companies, be sure to check their payment histories before making a selection. This way, you’ll know about the waiting period and other claim related matters before you sign up. Then get the paperwork out of the way and you’re done!”

“A lot of tech-savvy people are also going the online way,” said Vicky, gesturing to his laptop. “You can get direct insurance quotes yourself instead of going through an agent.”

Rishi nodded. “Yes, I do prefer doing things online. I’ll probably buy my vehicle insurance online,” he said. “It just seems much easier.”

How to Get the Right Premium:

Premium is an important factor when selecting insurance. Vicky clarified, “It depends a lot on how much you can spare on a regular basis. The general idea though, is to get as much coverage as possible from as little premium paid as possible.”
“Alright, so what can I do to get lower premiums?” asked Rishi curiously.
Vicky smiled. “If you want to reduce you premium, it’s best to maintain a clean driving record, minimise your claims, and purchase vehicles with in-built safety mechanisms like airbags, alarms and anti-lock brakes.” He paused, thinking a bit before speaking again. “You could also choose to increase the deductible – that’s the amount you pay for an accident or damage repair before the insurance company takes over the payment.”

“Thanks, Vicky,” Rishi said, slapping Vicky on the back. “Now that I know how important commercial vehicle insurance is, I’ll be sure to get one that specifically suits my needs, instead of one that just covers the bare minimum.”

“That’s good to know. Here, take this.” Vicky gave Rishi a brochure. “This has information about Tata AIG’s commercial vehicle insurance. They offer some unique Add on features. Go through it in detail and feel free to contact me if you have any questions.”
Rishi nodded. “Thanks again, Vicky. I’ll do just that.”

Related: Commercial Car Insurance vs Private Car Insurance