There has always been a lot of confusion when it comes to the differences between a car insurance policy and a commercial vehicle insurance policy. There are many who think that these two policies are one and the same; however, this is not true at all.
It is very important to understand the differences between these two insurance policies before you decide to purchase one. Let us first understand what these policies are before learning about their differences.
What is a private car insurance policy?
A private car insurance policy is what you buy when you own a car for personal use. You are required to buy a basic third-party policy which is mandatory for the coverage of third-party damages. You can also choose to opt for a comprehensive plan which will also cover damages caused to you and your car in case of an accident.
What is a commercial car insurance policy?
A commercial car insurance policy is meant for the car you own for commercial purposes. The coverage of this plan is meant for the car passengers, driver, and the damages caused to the car in case of an accident.
Now that we are clear on these two policies, let us take a look at 5 major differences between them:
- Legal liability
For private car owners, it is legally mandatory to have at least a third-party car insurance as well as a personal accident cover.
For commercial car owners, it is legally mandatory to have a third-party liability insurance policy for paid drivers as well as a personal accident cover for the car passengers.
- Coverage for car towing
For private car owners, their car insurance policies do not cover any kind of damages caused to their cars while being towed to a garage.
Commercial vehicle insurance policies cover the damages faced by the commercial car while being towed to a garage.
- Premiums for the car insurance policy
The usage frequency of a private car will obviously be lesser than that of a commercial vehicle. This is the reason why the premium of a private car insurance policy is cheaper than a commercial vehicle insurance policy.
Since a commercial car is going to used much more than a private car, its risk exposure is much higher. This is the reason premiums for commercial vehicle insurance are going to be higher as compared to private car insurance.
- Documents required to make claims
To make a claim on a private car insurance policy, you need to provide your driving license, the car’s registration certificate (RC), and your tax records to the insurer.
To make a claim on a commercial vehicle insurance policy, you need to provide your car’s permit, trip sheet, load challan, fitness certificate, FIR copy, car’s registration certificate, driving license, and your tax records to the insurer.
Please note that the above pointers might slightly differ based on the insurer you have brought your policy from.
So, this is how a private car insurance policy differs from a commercial car insurance policy. We hope that this blog has been useful to you. All the best!