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Important Things to know before buying a Commercial Vehicle Insurance Policy

Before purchasing a commercial vehicle insurance policy, you should know these factors and must consider. some main key points to keep in mind while buying or comparing:

Check Coverage Types: Understand the different types of coverage available for commercial vehicle insurance, such as liability (third party insurance) coverage, collision coverage, comprehensive ( full insurance or first party insurance) coverage. Determine which types of coverage are necessary for your specific business needs.

State and Legal Requirements: Familiar yourself with the insurance requirements mandated by your state or region for commercial vehicles. Each jurisdiction or RTO may have specific minimum coverage limits or other legal obligations that you must meet.

Vehicle Information: Provide accurate and detailed information about your commercial vehicle(s) to the insurance provider. This includes vehicle make, model, variant, year, identification number (VIN), and any modifications or accessories added to the vehicle. The insurer will use this information to determine the appropriate coverage and premium.

Usage and Business Information: Clearly communicate the purpose of the commercial vehicle(s) and how they will be used for business activities. Different usage scenarios, such as transportation, delivery, or construction, may require specific coverage options.

Insurance Limits and 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.

Additional Coverage Considerations: Evaluate if you need any additional coverage options beyond the basic ones. For instance, you might need coverage for specialized equipment, hired or non-owned vehicles, or cargo insurance if you transport goods.

Compare for best price and coverage: Obtain quotes from multiple insurance providers to compare coverage options, premiums, and customer reviews. It’s important to select a reputed insurer with good customer service and a strong claims handling process.

Exclusions and Limitations: Read the policy documents carefully to understand any exclusions, limitations, or specific conditions that may affect your coverage. Be aware of any situations or circumstances that might result in a claim denial or reduced coverage.

Claim Process and Customer Support: Research the insurance company’s reputation for handling claims and providing customer support. It’s crucial to choose an insurer known for efficient and fair claim settlements.

Review and Update Regularly: Regularly review your commercial vehicle insurance policy to ensure it aligns with your changing business needs. Inform your insurance provider about any modifications to vehicles, changes in usage, or additional drivers to ensure continuous coverage.

What is a Cashless Claim?  If you opt to get your commercial vehicle repaired with a insurer Authorized Repair Center, the insurer will make the payment for the approved claim amount, directly to the Repair Center. This is a Cashless Claim.

What is Third-Party Liability Insurance ? A Third-Party Liability is when your commercial vehicle damages to a third-party or unknown property, person or vehicle.  In this case your insurance policy (Liability only policy/Standard Package Policy) is liable to pay cover for the losses incurred towards it.

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