Insurance is an effective tool to cover your financial expenses in the event that your car is damaged. Regardless of whether it is a private or commercial vehicle, auto insurance is critical to protecting your car from potential loss or damage. Ensuring your car should be based on the risk factor. A commercial vehicle can drive more than one private vehicle, and this requires different coverage for accidental damage or loss. It helps to know the important factors in business and personal auto insurance. Read on to learn more about the difference between personal and business car insurance and the factors that influence the two types of car insurance.
Car insurance that covers a car that you own for personal use is known as private car insurance. Comprehensive insurance that includes your own damage and liability plan is considered solid coverage for your personal car. Here you will find details about personal auto insurance coverage as part of the comprehensive insurance plan.
Auto insurance covers a car that you own for business purposes, eg. Eg B. a taxi or a taxi. The type of insurance coverage in this category is slightly different as there are other risks. This is financial coverage for standard passenger, driver, and vehicle damage. This can affect your business and getting an insurance policy for your car or cabin becomes even more important.
There is a high risk with commercial vehicles because the number of kilometers traveled is greater and, therefore, the risk is greater. This, in turn, affects your insurance premiums and deductible. While the risk with a private car is comparatively less. The use of the car should not be rough. And that keeps the insurance premium and deductible low.
Commercial vehicle insurance financially protects the insured’s business against damage caused by a serious accident. This insurance provides protection against fire, theft, natural disasters, accidents and personal accidents of the driver, as well as against civil liability. Private auto insurance offers financial protection against fire, theft, force majeure, accidents, civil disturbances, personal accidents, and liability.
The premium rate for commercial auto insurance depends on the risk, the age of the vehicle, and the size of the engine. The premium rate for private auto insurance depends on the capacity of the engine but is independent of the age of the vehicle. The premium rate is also comparatively lower than that of commercial auto insurance.
DOCUMENTS REQUIRED FOR A CLAIM
To claim your coverage for a commercial vehicle, you will need to present a certificate of physical fitness, vehicle registration certificate, challan charge, driver’s license, tax book, license, copy of FIR, and a trip sheet. To obtain coverage for your private car, you will need to present a registration certificate, driver’s license, and tax book.