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Commercial Van Insurance

It is no secret that if you drive a commercial van, you cannot overlook its dedicated insurance plan. The Motor Vehicle Act of 1988 mandates that you carry third-party liability insurance at the very least, but you have the choice to choose a comprehensive policy to gain better protection for your car, bike, truck, taxi, van, etc.

Commercial van insurance is a specific kind of policy made to protect automobiles used for commercial purposes. The majority of the time, the law mandates this form of protection, which can range from liability insurance that protects you and your passengers in the event of an accident to comprehensive insurance that covers collisions, fire damage, and vandalism.

What is Commercial Van Insurance?

Commercial van insurance is a dedicated vehicle insurance policy that is designed to provide coverage for vans utilised for commercial purposes, including school vans, private vans, and other vans. Both the commercial vehicle and other third parties have the potential to inflict these losses or damages to third-party property or people.

Both of these types of damages, namely third-party damages and own damages, are covered if your vehicle has comprehensive commercial vehicle insurance. If your van just has third-party commercial vehicle insurance, your car’s coverage is only going to cover losses or damages your car causes to other people.

Types of Commercial Vans Covered

Here are the types of commercial vans covered.

  1. School Van: Our van insurance can provide coverage for school-owned and -operated vans that are used to move teachers and pupils around.
  1. Public Van: Vans used for public transit are also eligible for coverage.
  1. Private Van: Vans that are used to transport items for commercial purposes or passengers can also be covered.
  1. Other Commercial Vehicles: Any additional vehicles utilised for commercial or operational purposes are eligible for coverage.

Why Should You Choose a Commercial Van Insurance?

Let’s look at the reasons why you require commercial car insurance now that you are aware of what it is.

  1. Compliant With the Law

According to the Motor Vehicles Act of 1988, as we have already seen, it is a need for motor vehicles to have a legal insurance plan. Every commercial vehicle that is operated on public roads is required by the Act to obtain, at the very least third-party commercial vehicle insurance.

  1. It Safeguards Your Finances

Having commercial vehicle insurance can offer some much-needed financial protection in the event of an accident, damage, or loss to or caused by your vehicle, which is one of the main benefits of doing so.

For instance, if your van is in an accident, you can also be responsible for paying damages or making up for other people’s losses in addition to fixing your car. Paying for everything out of your pocket can prove to be a heavy financial burden. However, if you have commercial vehicle insurance, your insurance company will cover these costs, protecting both you and your financial situation. 

  1. It Boosts Self-Confidence in Your Customers 

Insurance for commercial vehicles also covers losses and damages to items that you transport with your vehicle. This tends to give your clients a sense of confidence and can soothe their concerns. Additionally, your clients are more likely to want to keep doing business with you if they are confident that their possessions are well-protected.

What's Covered in Commercial Van Insurance?

Here are the things included under commercial van insurance.

  1. Accidents

Damages and harms incurred by the van as a result of an accident.

  1. Theft

All losses and damages incurred by the van as a result of theft.

  1. Fire

Any harm or losses incurred by the van as a result of an unfortunate fire.

  1. Natural Catastrophes

Any losses and damages incurred by the van as a result of earthquakes, floods, or other natural disasters.

  1. Personal Injury

protects against any personal injuries or death of the van’s owner-driver.

  1. Loss to Third Parties

In the event of an accident or collision, it provides coverage for losses and damages the insured van may cause to another person, vehicle, or piece of property.

  1. Disabled Vehicle Towing

Provides coverage for any van damage sustained while being towed.

What are the Add-ons available with Commercial Van Insurance?

By selecting add-ons at the time of purchase or renewal, the coverage provided by commercial van insurance can be increased. The premium does, however, somewhat increase when add-ons are chosen. After that, let’s look at some of the add-ons you have available.

  1. Zero Depreciation Cover 

You will receive the full amount of your claim without any depreciation reductions thanks to our add-on.

  1. Consumable Cover

Consumables like nuts, bolts, engine oil, and more are covered by this add-on during repairs.

  1. Gearbox and Engine Cover

This add-on makes sure that all expenses linked to fixing the damage are covered if your vehicle sustains any engine or gearbox damage as a result of an accident or incident.

  1. Roadside Assistance Cover 

The roadside assistance plan can make sure you receive help as quickly as possible if your car breaks down in the middle of the road. 

  1. Coverage for Revenue Lost

This add-on aids in covering any revenue losses that may occur while your car is being repaired.

  1. Coverage for Personal Accidents

The expense of medical care for physical wounds or the loss of life of the owner or driver of the commercial vehicle is covered by this add-on.

What’s Not Covered in Commercial Van Insurance?

All incidents of losses or damages to your vehicle or caused by it are not always covered by a commercial van insurance policy. Knowing what is not covered is crucial, for this reason. Here is a short glance.

  1. Any harm to your car is not covered if you have a third-party policy.
  1. Consequential damages, or damage to your car that does not directly stem from an accident or other incident.
  1. Your car gets damaged as a result of drunk or drugged driving.
  1. Vehicle damage brought on by operating a vehicle without a legal licence.
  1. Vehicle damage brought on by careless behaviour.
  1. Your van’s normal wear and tear.
  1. Damages to your car brought on by internal or foreign conflicts and nuclear war.
  1. Electrical or mechanical failures.

What To Consider While Applying For Commercial Van Insurance?

Now that you know everything there is to know about commercial car insurance, let’s look at the factors you will need to take into account when requesting coverage.

  1. Insurance Coverage

It’s crucial to have sufficient vehicle insurance coverage. That’s exactly what comprehensive commercial auto insurance plans give you. Therefore, choosing such a strategy rather than sticking with a straightforward third-party one is a good option.

  1. Insured Declared Value (IDV)

You will be prompted to select the Insured Declared Value (IDV) for your car when you buy commercial vehicle insurance. The amount of compensation in the event of theft or total loss will increase in direct proportion to the IDV that you select. However, greater IDVs can raise your rate; therefore, utilise a commercial vehicle insurance calculator to estimate your premium amount.

  1. No Claim Bonus (NCB)

You will also be required to input the specifics of any No Claim Bonus you have accrued during the renewal process. When you don’t file any claims for a year, NCB gets awarded. Don’t forget to provide the information about accrued NCB when applying, as doing so could result in a reduction in the price of commercial vehicle insurance.

  1. Add-Ons

Last but not least, remember to select add-ons when purchasing or renewing commercial vehicle insurance. Beyond what the default insurance plan offers, you can improve the coverage you get. But keep in mind that it can raise your total premiums.

Buying Process of Commercial Van Insurance

If you are looking to buy commercial van insurance, then you can simply buy it offline or online mode.

Online Mode:

  • To purchase commercial van insurance online, all you need to do is visit the company’s website.
  • On the other hand, you can consider third-party service providers, such as Probus Insurance, which can help you find and buy the best commercial van insurance.

Offline Mode:

If you wish to purchase insurance coverage in person, all you need to do is simply visit the nearest branch. When you visit the branch, you can obtain all the information you require regarding commercial van insurance. However, if the issues continue, you might get assistance by getting in touch with the insurance company.

A Step-By-Step Guide to File a Claim for Commercial Van Insurance Policy

Making a claim is as simple as renewing commercial van insurance online. For instructions on filing an insurance claim, see below.

Step 1: To file a claim online, go to the website of your commercial van insurance provider.

Step 2: File the paperwork necessary to register your claim. This often entails paperwork to provide details such as the engine and chassis number, the accident description, the date, and the time of the accident, as well as a copy of the police complaint if your claim is for car theft.

Step 3: The insurer will next evaluate your claim and the supporting documentation.

Step 4: As soon as your claim is accepted, it is settled.

Frequently Asked Questions

Yes, you can choose passenger protection to protect your passengers if you want to get a complete commercial van insurance policy.

This mostly relies on the kind of vehicle you want to insure, its age, the city in which it is used, and the insurance plan you choose.

You can’t, unfortunately. Every vehicle, including commercial vans, must have separate insurance coverage. However, you can acquire a tailored package that covers all of your vehicles for a lower price.

The preferable choice is comprehensive insurance because it protects your car against both third-party liability and your losses.