What are the Differences Between Commercial Truck & Private Car Insurance?

Everyone has their own preferences when it comes to buying a vehicle. While some people may prefer to buy luxury cars, some people may choose to buy an SUV for themselves. Similarly, the preferences of people differ while buying a vehicle to be used commercially in their business. Depending on the kind of work for which they need a vehicle, they can buy choose from a wide range of commercial vehicles available in the market. Read more

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Commercial vehicles include both goods carrying vehicles as well as passengers carrying vehicles. While trucks are an example of goods carrying vehicles, taxis or commercially used cars are an example of passenger carrying vehicles. Just like a regular car needs a private car insurance policy, trucks need to covered under a commercial truck insurance policy to abide by the motor laws of India. In case you are new to motor insurance, let’s take a quick look at what car insurance and truck insurance is all about.

Private Car Insurance

Private car insurance will cover your car from any unforeseen situations that may cause financial losses to you. These situations include accidents, third party liabilities, natural calamities, theft, fire and manmade calamities. The motor insurance company will pay for the cost of repairing any damages sustained by your car due to these unforeseen events. Besides, it will also pay compensation to the third parties on your behalf in case your car has caused them injuries or damages to their property.

A car insurance policy is meant for people who use their cars for private purposes. Thus, it is also considered as a private car insurance policy. If your car is being used commercially, you will have to buy a commercial vehicle insurance policy for your vehicle.

Commercial Truck Insurance

Commercial truck insurance will cover your truck against unpredictable events that may cause monetary losses to you. It is a type of commercial truck insurance policy that prevents you from incurring losses in your business resulting from the damages caused by or to your truck. Similar to the private car insurance policy, a commercial truck insurance policy will also cover your vehicle against natural calamities, accidents, third party liabilities, manmade disasters, fire and theft depending on the type of coverage your choose. Moreover, it also provides coverage against damages caused by the insured truck while being towed to a nearby garage.

A commercial truck insurance policy is designed to cover trucks used for commercial purposes only. Whether you have a mini truck, light truck, medium truck or heavy-duty truck, your commercial truck insurance policy will cover them provided they are being used for commercial purposes.

How is Commercial Truck Insurance Different from Private Car Insurance?

There are several differences between commercial truck insurance and a private car insurance policy. The table below represents the differences between the two. Take a look:

Categories

Commercial Truck Insurance

Private Car Insurance

Vehicles Covered

It covers trucks that are being used for commercial purposes.

It covers cars that are being used for personal use.

Level of Risk

Commercial trucks are used regularly to carry out business activities and therefore, have more probability of getting damaged. Therefore, commercial truck insurance provides coverage for a higher level of risk.

Private cars are not used as frequently as commercial trucks. This lowers their exposure to risks. Hence, a private car insurance policy offers a low level of risk cover.

Mandatory Requirements

It is mandatory to buy a commercial vehicle insurance policy for your truck that at least provides coverage for third party liabilities and legal liabilities arising out of paid drivers.

It is mandatory to buy a car insurance policy for your four wheeler with a minimum of third party liability cover.

Towing Disabled Car Cover

It covers any damages caused by the insured truck while being towed to the nearest garage for repair.

It does not cover any damages caused by the insured car while being towed to the nearby garage.

Personal Accident Cover

It provides personal accident cover to the owner-driver of the truck as well as to the paid drivers hired to run the vehicle. While the owner-driver is covered for accidental disability or death, legal liabilities arising out of paid drivers of the truck are also covered under this commercial vehicle insurance.

It provides personal accident cover only for the owner-driver of the car against accidental death or disability. You can buy the personal accident cover for your paid drivers under car insurance as an add-on cover.

Car Insurance Premium

The premium for a commercial truck insurance policy is usually high as compared to a private car insurance policy as trucks have a high level of risk exposure.

The premium for a private car insurance policy is generally low as the four wheeler comes with a lower level of risk exposure as compared to a tuck.

Claim Documents

Under commercial truck insurance, you may be required to submit your truck’s permit, registration certificate (RC), trip sheet, load challan, fitness certificate, driving license of the person driving the vehicle, your tax records and a copy of the police FIR to raise a claim.

Under private car insurance, you may be required to submit the RC of your car, your tax records and your driving license to raise a claim.

Claim Procedure

Although the exact claim procedure may vary from one motor insurer to another, you will be required to file a police FIR and get a spot survey done if you raise a claim under your commercial truck insurance policy.

Under private car insurance, filing a police FIR or getting a spot survey done may not be compulsory. But you will have to raise a police FIR to raise a third party claim. However, the claim procedure may be different for various motor insurers.

Summing It Up

Cars as well as trucks are widely used among the people. This may make a lot of people to assume that the same motor insurance policy can provide coverage for both vehicles. But that’s not true. Trucks are usually used for commercial purposes and private cars are used for personal use. Therefore, you need to buy commercial vehicle insurance for trucks and car insurance for your private cars. The above table enlisting the stark differences between a commercial truck insurance policy and a private car insurance policy will surely help you get a clearer perspective.

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