Tips to Save Your Commercial Vehicle Insurance Premium

It is mandatory to buy commercial vehicle insurance for every owner of a commercial vehicle plying on the roads. All the vehicles being used for commercial purposes are covered under this policy. The owner/driver needs to carry the Insurance Certificate in the vehicle as proof. If you own a commercial vehicle or commercial vehicles, you would have definitely purchased insurance for the same. However, if you are wondering how to save on your commercial vehicle insurance premium then you are at the right place.

In this article, we will discuss what factors have an impact on the insurance cost, and some simple tips to help you reduce the cost of your commercial vehicle insurance premium.

How to Save on Commercial Vehicle Insurance Premium?

Check out these tips to reduce your commercial vehicle insurance premium in an effective manner:

  1. Compare Policy Quotations- By comparing different commercial vehicle insurance quotesbased on the premium amount, you can choose a policy with the minimum insurance premium.
  2. Installation of the anti-theft device- It also helps reducing vehicle insurance premium.
  3. Claim When Necessary- Do not claim for small damages to earn a No-claim-bonus.
  4. Voluntary Deductibles- Opt for higher voluntary deductibles as it lowers the premium. If you are capable of paying portion damage yourself at the time of claim, then only opt for voluntary deductibles.
  5. Modifications-Vehicle modifications also affect the insurance premium.
  6. Review your coverage- If you want to reduce the premium, review your policy coverage features and opt-out of any unnecessary features that you are not going to claim and are paying additional premium for it.
  7. Timely Renewal- Missing the policy renewal date may attract a higher cost of insurance premium as well as vehicle inspection.
  8. Become a Member of Automobile Association- Members of Automobile Association of India can also avail discount on auto insurance premiums.

You May like to Read: What to Do If Your Commercial Vehicle Insurance Papers Have Lost?

Factors Affecting Commercial Vehicle Insurance Prices

Commercial vehicle insurance premiums are not just arbitrary numbers made up by the auto insurance providers. These are thought-out calculations. One must be aware of the vital factors affecting commercial vehicle insurance rates.

The determinants that contribute to reducing the commercial vehicle insurance premiums are as follows:

  • Geographical Location: The geographical location has a great impact on premium rates. Low traffic areas are likely to have lesser premiums and vice-versa.
  • Commercial Vehicle Engine Type: Insurance Companies charge a higher premium for commercial vehicles with higher cubic capacity in comparison to those with lower engine cubic capacity.
  • Personal Factors: Personal factors also play a vital role in determining premium rates. Women are likely to pay lesser premium amount than men.
  • Coverage Type: The rate of premiums also depend on the type of coverage you opt. Comprehensive commercial vehicle insurance is likely to have higher premiums than third-party motor insurance.
  • Customized Commercial Vehicle Insurance Plan: A tailor-made plan fulfilling all the key requirements might have come with a higher premium

How to Compare Commercial Vehicle Insurance Online?

To enjoy the policy benefits continuously, one must compare vehicle insurance online. However, at the time of vehicle insurance renewal also, one must consider the following pointers-

1. Types of Commercial Vehicle Insurance Plan

As discussed above, there are two types of commercial vehicle insurance; it depends on the insured whether he/she needs third-party liability insurance or comprehensive insurance.

2. Cashless Facility at Affiliated Garages

One must check the list of the network garages the insurance provider has a tie-up with. If yes, the insured can avail cashless claim settlement facility. At network garages, the insurance company directly settles the claim amount. At the time of commercial vehicle insurance renewal also, one must check for the network garages.

3. Add-on Commercial Vehicle Insurance Features

There are a few additional benefits or riders, which are available with comprehensive commercial vehicle insurance policies. One must compare vehicle insurance quotes based on these add-on covers and choose the most adequate one. The policy seekers should go for the insurer that offers maximum add-on benefits.

4. Deductibles

Voluntary deductibles are a certain percentage of the claim amount that the insured chooses to pay from his/her own pocket at the time of claim. Whereas, compulsory deductibles are decided by the insurer at the time of policy purchase and renewal. Higher the deductibles, lower will be the premium. However, one must choose a deductible that is affordable.

5. Insured Declared Value (IDV)

The Insured Declared Value (IDV) is the basic amount that the insurer fixes for the current market value (of that year) of the vehicle, which is provided in the event of the total loss of vehicle or if the vehicle is stolen.

Benefits of Comparing Commercial Vehicle Insurance Policies Online

  • One can easily compare commercial vehicle insurance policies from top motor insurance companies. It is easier to go through the policy benefits, features and limitations.
  • One can check out numerous options and choose the one that offers maximum discount and at a lower premium amount
  • Broker’s cost is eliminated
  • There is transparency in terms of the purchase and renewal process. Customer reviews can also help in making the purchase decision
  • One can make an informed decision and choose the best commercial vehicle insurance plan by comparing all the available options

Mistakes to Avoid When Buying Commercial Vehicle Insurance

These things should be taken care off in order to purchase the best commercial vehicle insurance plan-

  • Failing to Compare Quotations- Not comparing vehicle insurance quotations from different insurance companies on the basis of policy features, benefits, premium, claim settlement and limitations
  • Opting for a Low Premium Policy- Choosing a vehicle insurance policy with minimum premium might not always be a good idea
  • Unnecessarily Choosing Higher Deductibles- Opting for higher deductibles just to lower the premium amount.
  • UnnecessarilyChoosing Optional Covers- Add-on covers are optional and should be chosen only if one can pay a higher premium against enhanced protection
  • Only Buying Third-party Liability Cover- Opting only for third-party liability insurance. It is made mandatory by law, but a comprehensive insurance plan covers own damages as well.

Over to you

Buying commercial vehicle insurance is necessary, but with the above-mentioned tips if you are able to save a certain percentage of the premium cost then there is nothing like it. Simply, follow these tips and get all your commercial vehicles insured without paying unnecessary extra premium.

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