Important Things To Know Before Buying Goods Carrying Vehicle Insurance

Vehicle Insurance

Goods carrying vehicle insurance is a type of insurance that covers vehicles that are used for commercial purposes, such as vans, trucks, and other vehicles that are used to transport goods.

This insurance provides coverage for damages and losses that may occur to the vehicle, its cargo, or other parties involved in an accident.

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Having goods carrying vehicle insurance is important for several reasons. First and foremost, it is a legal requirement in India for vehicles that are used for commercial purposes to be insured.

This helps to ensure that if there is an accident, the costs associated with any damages or injuries are covered.

In addition to being a legal requirement, goods carrying vehicle insurance can also protect businesses from financial losses.

If a vehicle is involved in an accident or if goods are lost or damaged during transport, the insurance policy can cover the costs associated with repairing or replacing the vehicle and compensating for the lost or damaged goods.

This can be especially important for small businesses that may need more financial resources to cover these costs.

Finally, having goods carrying vehicle insurance can provide peace of mind for business owners and drivers.

Knowing that they are protected in the event of an accident or loss can help them to focus on their work and transport goods safely and efficiently.

If you are planning to buy goods carrying vehicle insurance in India, there are several important things that you should keep in mind.

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1) Type of Insurance: In India, there are several types of goods carrying vehicle insurance policies available. Here are some of the most common types:

  1. Third-Party Liability Insurance: This type of insurance covers damages caused to third-party property or injury to third-party individuals due to an accident involving the insured goods carrying vehicle.
  2. Comprehensive Insurance: This insurance policy covers both third-party liability and damage to the insured vehicle, including theft, fire, natural calamities, and accidents.
  3. Goods in Transit Insurance: This type of insurance covers loss or damage to goods while they are in transit from one place to another by the insured vehicle.
  4. Public Carrier Insurance: This type of insurance policy is designed for commercial vehicles that transport goods or passengers on a regular basis. It covers the liability of the insured vehicle towards passengers and goods in case of accidents or damage.
  5. Fleet Insurance: This is a specialized insurance policy for businesses that have a fleet of goods carrying vehicles. It provides coverage for all the vehicles in the fleet under a single policy.

2) Premiums: The premiums for goods carrying vehicle insurance vary depending on the type of insurance, the age and condition of the vehicle, and the driver’s experience and driving record. Make sure to shop around and compare premiums from different insurance companies to get the best deal.

3) Add-ons: Many insurance companies offer add-on covers for goods carrying vehicle insurance, such as zero depreciation cover, engine protectors, and roadside assistance. Consider whether these add-ons are necessary for your business and budget.

4) Exclusions: It is important to understand the exclusions in your goods carrying vehicle insurance policy. Some common exclusions include

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  1. Driving Under the Influence: Any damages or losses caused while driving under the influence of alcohol or drugs are not covered by the policy.
  2. Illegal Activities: Any damages or losses caused while the vehicle was being used for illegal activities, such as smuggling or theft, are excluded from coverage.
  3. War and Terrorism: Any damages or losses caused due to war, terrorism, or any other such act are generally excluded from coverage.
  4. Intentional Acts: Any damages or losses caused intentionally by the driver or owner of the vehicle are excluded from coverage.

5) Claim Process: Before buying goods carrying vehicle insurance, make sure to understand the claim process of the insurance company. Know the documentation required and the steps to be taken in case of an accident or loss.

6) Know your insurance company in detail: When choosing an insurance company for your goods carrying vehicle. Here are some of the key factors to check:

  1. Reputation: Look for an insurance company with a good reputation and a history of providing reliable coverage and excellent customer service.
  2. Coverage Options: Make sure the insurance company offers the specific types of coverage you need for your goods carrying vehicle. This may include liability coverage, comprehensive coverage, collision coverage, and more.
  3. Premiums and Deductibles: Consider the cost of premiums and deductibles when choosing an insurance company. Look for a company that offers competitive rates and reasonable deductibles.
  4. Customer Service: Check the company’s customer service reputation by reading reviews or asking for recommendations from other business owners who use the same type of insurance.
  5. Claims Handling: Consider how the insurance company handles claims. Look for a company with a quick and efficient claims process and good customer support to help you navigate any issues that may arise.
  6. Financial Stability: Ensure the company has a strong financial position, as this will give you confidence that it will be able to pay out claims when necessary.

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You shouldn’t choose a goods carrying vehicle insurance plan only because it has a low premium cost. You should also think about what they are covering and what they are not, as well as whether they are even appropriate for your commercial vehicle.

In order to be financially secure in times of need, it is advised to always look for maximum coverage. Before purchasing comprehensive or third-party insurance for commercial vehicle, you should think about the aforementioned factors to ensure that you are completely protected in the terrible event of fraud or an accident.

It is advisable to use technology to your advantage and add cameras, anti-theft systems, automatic accident detection devices, and other things in your commercial cars.

It’s important as it mostly offers two advantages. First, when filing a claim, these recordings can serve as strong evidence, ensuring that you receive the maximum compensation.

Second, insurance companies claim that your car is considered low-risk if it has technologically sophisticated features. As a result, your premium payment will be minimal.

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