What Are the Commercial Truck Insurance Requirements?

As a commercial truck driver or a company that uses commercial vehicles to run the business, there are significant responsibilities. You have to ensure that they are running safely on the road. Trucks are giant and muscular vehicles that can lead to massive property damage and substantial injuries or maybe fatal death if an accident occurs. Here, we have discussed commercial truck insurance requirements in India and related facts about trucking insurance. 

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What to Considered at the Time of Commercial Truck Insurance Requirements?

To avail of the right commercial truck insurance policy, you have to fulfill certain requirements in India. However, make sure you provide as much as required information to your insurance provider so they can effectively find the best-fitted policy according to your need and budget. Below are some of the things you may need to start with:

1. Type of Carrier 

Trucks are considered the most convenient mode of transport for cargo between factories, warehouses, wholesalers, and retailers. There are different types of trucks available, from small pickups to heavy haulers that transport oversized cargo. Depending on the type of carrier, you can choose the commercial truck insurance plan accordingly. 

2. Business Type 

There are several commercial truck insurance options for different businesses. You can be an operator trucking business, movers and packers, specialty transportation, livestock transportation, or medical transportation business. Depending upon the business type, you can buy a commercial vehicle insurance policy

3. Status of Cargo 

Knowing your cargo status helps the commercial vehicle insurance company in ensuring the security of your shipment. Also, you must take all the preventive measures to take care of your cargo. Unpredictable weather conditions and a lack of proper packing can halt the process. So, you must ensure the exact status of your cargo to protect it from various risks like theft, damage from collision, etc. 

4. Mode of Transit 

Your insurer will ask for details like mode of transit because it offers coverage for cargo or personal goods that are moved from one place to another. Your commercial truck insurance company offers coverage for transportation in all the stages of transit, including packing & unpacking, loading & unloading, transportation of cargo, and storing goods during the transport. Hence, you should provide the correct information regarding the mode of transit to your insurer. 

5. Type of Packaging 

Packaging indeed plays a vital role in transporting your goods safely to place. The quality of packaging has significance in deciding your insurance premium. If the quality is low means the risk is high and you have to pay the higher premium amount to insure the articles.

6. Details of Vehicle 

Your insurer will also ask for details of the commercial truck you are insuring. For deciding the premium in a commercial truck insurance policy, certain information like the net weight of the truck, registration details, delivery location, number of drivers, fuel type, make & model of the truck, and passengers (if any). 

All the above details will classify the vehicle into two categories, i.e. light-duty trucks and heavy-duty trucks. Also, it is important to check the local RTO of your district or state to ensure that you comply with all the rules related to commercial vehicle possession. If you are operating outside the location mentioned in your policy, then you will have to inform your transportation authority and the insurer regarding the city in which you are planning to run your truck. 

7. Insured Declared Value (IDV)

Setting the right IDV will directly affect the premium you pay toward your  commercial truck insurance. An IDV is the current market value of the commercial truck fixed by your insurer for insurance coverage. It is calculated based on deducting the depreciation amount from it with the manufacturer's selling price of the truck. Thus, choosing the right IDV will help in knowing the premium amount. 

8. Personal Details of the Truck Owner 

This is the final question asked by insurers for issuing a commercial truck insurance policy. The process of applying for truck insurance purchases is simple. You must have required personal details like the name of the insured, email id, contact number, age, occupation, chassis no., engine capacity, RTO location, towing capacity, seating capacity of the truck, etc.

Facts About Trucking Insurance

There are several types of coverage options available in your commercial truck insurance. The type of freight you are hauling decides the coverage type you need. Make sure you choose the right truck insurance provider that gives you the counsel while finding the right coverage. Some insurers only provide coverage for the vehicle and not for the cargo you are hauling. So, you might end up paying a hefty amount for the losses.

Also, as a professional driver, you must keep your driving history clean and accidents free because it will shed a positive impact at the time of purchasing a policy and determine the cost of the commercial truck insurance premium. 


Commercial trucks are very important assets for running various types of business. That is why it is equally important to protect them from several risks with a commercial truck insurance policy. With the help of this article, we hope you will consider all the pointers before buying a commercial truck insurance policy. 

Commercial Vehicle insurance articles

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