Some Easy Steps to Buy the Best Commercial Vehicle Insurance

 Easy Steps to Buy the Best Commercial Vehicle Insurance

Commercial Vehicle Insurance is designed to cover damages to your commercial vehicle. A commercial vehicle insurance online policy also safeguards liabilities of vehicle owners to third parties. It is essential to buy commercial vehicle insurance as per the Motor Vehicles Act, 1988. If you are running a business that involves such vehicles, you should look to get the best commercial vehicle insurance policy. There is many a commercial vehicle insurance company in India so you need to be careful while choosing the best one. Here are some tips to select the best plan when it comes to buy and renew commercial vehicle insurance plans.

Compare Before You Buy Commercial Vehicle Insurance

You should compare commercial vehicle insurance online and select the most suitable plan as per your requirements. While comparing you should go through the reviews of policyholders to make an informed choice.

Buy the Policy Online

 If you choose to buy and renew commercial vehicle insurance online, you can not only save a lot of time and effort but can also avail a hefty discount.

Pick the Right Insurer

You should settle with a commercial vehicle insurance company that is authorized by IRDAI. You also should check out all the licensed insurance companies thoroughly in terms of reputation, services on offer, customer support and claim settlement record.

Read the Policy Document Carefully

Before zeroing in on a particular commercial vehicle insurance online plan, you should read the documents and be aware of what’s on offer and what’s not. This is how you can trace out the best policy available for your vehicles.

Consider Add-on Covers

You can consider various add-on covers to enhance the regular coverage when you renew your commercial vehicle insurance. You can also avail them right when you buy a policy.

How Premium of Commercial Vehicle Insurance is Determined?

Now that you know how to buy the best commercial vehicle insurance plan you should be able to find and procure one by paying a premium. You should also know how the premium of policies is worked out. This will help you to minimize your premium outgo when you renew commercial vehicle insurance plan.

·         IDV or Insured’s Declared Value

IDV is the market value of a commercial vehicle and is also the Sum Insured of a commercial vehicle insurance plan. IDV is determined when a policy is issued. A commercial vehicle insurance company pays out the IDV or Sum Insured amount if the insured vehicle is stolen or is deemed as a total loss. As the IDV rises, the premium of commercial vehicle insurance plans also increases.

·         Place of Registration

There are three zones for commercial vehicle registration and the commercial vehicle insurance premium differs from one to another. Zone A registered vehicles attract the highest premiums while the premium rate is the lowest in Zone C.

·         Weight, Fuel Type, and Age of the Vehicle

A commercial vehicle insurance premium is higher with older vehicles and those with higher weight. A petrol-based vehicle is charged with a lower premium than CNG/LPG and diesel based vehicles.