Commercial vehicle insurance premiums are typically calculated based on various factors, including the type of vehicle, its usage, the driver’s history, and the coverage options selected.
Below are some factors that influence commercial vehicle insurance premium:
No Claim Bonus: It is a discount on your premium if you have not made any claim in your previous history. If you’ve already had commercial vehicle insurance before and if you wish to renew your policy or get a new insurer- then in this case your NCB (No Claim Bonus) will also be considered, and you will get a discounted premium in your insurance!
Vehicle Information: The make, model, year, and value of the vehicle are considered. Generally, more expensive or high-performance vehicles like big trucks and other high end vehicles will have higher premiums.
Vehicle Usage: The purpose of the vehicle and its usage play a role. For example, a delivery van might have a different premium compared to a truck used for construction work.
Coverage Options: The type and level of coverage you choose affect the premium. Common coverage options include liability coverage, collision coverage, comprehensive coverage, and uninsured motorist coverage.
Deductibles: The deductible is the amount you agree to pay out of your pocket while buying insurance. Higher deductibles leads to lower premiums, while lower deductibles result in higher premiums.
Location: The geographic area where the vehicle will be primarily used impacts insurance premiums. Areas with higher accident rates or theft rates tend to have higher premiums.Claims History: If your business has a history of making claims on commercial vehicle insurance, it can affect the premium. Frequent claims may lead to higher premiums.