Difference between commercial and private car insurance

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.

Private 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.

Private car insurance coverage

• Provides financial coverage against damage or loss due to an accident.
• Financial coverage against theft, natural disasters, fires, and civil disturbances.
• Personal accident insurance for the owner-driver.
• Public obligation.

What is not covered?

• The professional/commercial use of the vehicle is excluded.
• Does not include passenger coverage. However, you can also opt for the add-on to keep passengers safe.
• It does not include personal drivers if you have not opted for additional coverage.

Commercial Car Insurance:

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.

Commercial vehicle insurance coverage

• Provides financial security for the insured’s business due to loss or damage to the commercial vehicle in the event of an accident.
• Coverage against total loss in case of theft, fire, and natural disasters.
• Provides individual coverage against driver accidents.
• Passenger insurance option.
• Includes civil liability.

What is not covered

• The use of the vehicle for personal purposes is excluded.
• Regular wear.
• Electrical/mechanical failure.
• Loss or damage from radiation / nuclear attack / war.
• Damage caused by using the car beyond its limits.
• Damages caused by someone else driving the insured vehicle other than the driver mentioned in the policy.

RISK INVOLVED:

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.

POLITICAL COVERAGE

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.

PREMIUM PRICES

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.