What is commercial vehicle insurance?
This is insurance that is purchased for vehicles that are used for non personal business purposes. The main use is to provide the owner with protection against costs that may arise due to damages and accidents. The commercial insurance vehicle cover can work for both the car and the passengers or pedestrians.
Step 1
In most regions commercial insurance vehicle cover is compulsory before use of the vehicle in public roads. It is very important to have Commercial insurance vehicle cover as a means of protection and security cover because you do not know what might happen. If in case of an accident, it is your insurance company that will meet all the costs that might come up from the accident.
Step 2
Types of commercial vehicle insurance
Commercial insurance vehicle cover can be split into three categories depending on the use of the vehicle. It is very important to be specific since the categories have a very big range and difference in terms of price. Also you should select the best policy because if you select the wrong commercial vehicle insurance cover policy, you will be uncompensated in case of any occurrence.
Step 3
The three types of covers are haulage, carriage of own goods and domestic cover. Haulage commercial insurance vehicle cover is for using your vehicle for transportation of other people’s goods and transportation of people. Carriage of own goods is a cover that caters for vehicles belonging to the owner or company and are used for carrying and transportation of the goods of the owner. Domestic cover is for vehicles that are hired by people for their own transportation services.
Step 4
Calculation for application for commercial vehicle insurance
The cost you will incur to purchase a commercial insurance vehicle cover is usually found from a number that has a similar representation to BB/XX/DD. The first two numbers are used to refer to the bodily injury liability limits. The third number is used to refer to the property damage liability limits. The first pair means that if an accident would occur, each person would receive a maximum of BB, 000 with XX, 000 being allowed per accident.
Step 5
The last pair refers to the compensation amount for the property damage that might take place, if an accident takes place, the maximum compensation for the property damage would be DD, 000.This limits are used to help in the calculation of your interest amount and premiums for the commercial vehicle insurance cover that you will purchase.
How to choose the best commercial vehicle insurance
After getting insurance quotes from the various companies, inspect them for the following elements, the deductible, coverage and discounts. The effect of deductibles on premiums is that lower deductibles result in higher premiums and vice versa .It is thus best to seek a commercial insurance vehicle cover having a high deductible amount.
To make a claim, the risk should be insures against, seek a commercial insurance vehicle cover that is specific to your prone to risks. Discounts are also provided by your insurance providers, make sure you seek a commercial vehicle insurance cover with cost effective discounts.
