How Does a Commercial Vehicle Insurance Differ From Private Vehicle Insurance?

How Does a Commercial Vehicle Insurance Differ From Private Vehicle Insurance?


Insurance is an effective tool to cover your financial expenses when your car is damaged. Whether your car is meant for personal use or commercial operations, motor insurance is required to protect your car from potential damage or loss. Insurance for your car should be based on the risk factor of the vehicle. A commercial vehicle is more than just a personal car 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. Read on to find out the differences between private and commercial car insurance:

What is private car insurance?

The motor insurance policy known asprivate car insurance is meant to covercars that are meant for personal use. Comprehensive insurance with own damage coverage and third-party liability coverage is considered a strong cover for your personal car. Here are the details of what is included in personal car insurance coverage through a comprehensive insurance plan:

  • Financial coverage against loss or damage caused by accident.
  • Financial protection against theft, natural disasters, fires, and riots etc.
  • Personal accident coverage for owner/driver.
  • Third-party liability coverage.

* Standard T&C Apply

What is commercial car insurance?

A motor insurance policy that covers the car you own for business purposes is known as commercial car insurance. Great examples of these are taxis that run in Indian cities. The type of insurance coverage under this category is slightly different as the risks faced by commercial vehicles are different from private vehicles. These risks include damage to passengers, drivers, or vehicles. Any of these three can affect the business negatively and commercial vehicle owners need to be protected from them. Here is a list of things that are covered in commercial vehicle insurance:

  • Financial protection to the policyholder’s business in the event of an accident or damage to the commercial vehicle.
  • Coverage against loss of vehicle due to theft, fire and natural disasters.
  • Personal accident cover for the driver.
  • Passenger cover option.
  • Third-party liability coverage.

* Standard T&C Apply

Buy commercial car insurance

Before you go ahead and decide to buy commercial car insurance, it is very important to compare different insurance policies. You can compare car insurance online which is easy and hassle-free with the use of a car insurance premium calculator. You can compare different car insurance quotes and understand their coverage and premium. When choosing a car insurance policy you should aim for more coverage with lower premiums. It offers comprehensive coverage at competitive prices.Comparing insurance policies online allows you to find the right premium amount. Selecting the premium is highly important as it is a recurring cost and needs to be covered in motor insurance renewal.

In addition to the premium, you have to consider other aspects of car insurance before choosing a policy. Here are the various aspects of car insurance to keep in mind when comparing and buying commercial car insurance policies:


In addition to the basic comprehensive car insurance coverage, consider buying add-on covers such as Zero Depreciation, Engine Protection, etc. to refine your insurance coverage.

Insured declared value (IDV)

IDV is essentially the market value of your car at the time your policy was purchased. Be sure to check the IDV issued by the insurance company for the premium they are charging you. High IDV with reasonable premiums is the right way to get the right insurance coverage for your car.


It is important to go through the terms and conditions of the policy and understand them. This tells you about things and situations that your car insurance does not cover. This reduces the chances of claims being rejected.

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.


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