Factors to Consider Before Buying Commercial Auto Insurance
No Claim Bonus: For every no-claim year, the insured is rewarded with a discount on the renewal premium. The no-claim bonus is cumulative and increases every year. This bonus can be in the range of 20-50% on the premium payable. However, it is important to remember that a ‘no claim bonus’ is not the insured’s right but something the insured earns by maintaining a no-claim record during the policy tenure.
Personal Accident Riders: Personal Accident Riders are optional add-on benefits. They can be added to a plan by paying an extra premium. These add -on benefits include payment to insured in the period he is not able to earn due to complete or any partial disabilities.
Cover for Commercial Vehicle Accessories: Cover for vehicle accessories is provided by commercial vehicle insurance policies separately as an add-on benefit. The insured has to opt for it through the payment of an additional premium.
Word of Advice
The insured can save on premium by paying higher deductibles. The insured can opt to pay higher deductibles at the time of enrolment, and the insurance company, in turn, gives the insured discount on the premium.
While comparing different policies, we have to fill in certain relevant data. These are some of the terms a commercial vehicle insured must be familiar with to fill in the data:
Vehicle Make, Model and Variant: The base premium is calculated based on the make, model and variant of the commercial vehicle. Vehicles that are powerful and expensive to attract more premiums.
Year of Manufacture: The manufacture year of the vehicle is important as the insurance company has to assess the Insured Declared Value (IDV), which facilitates the vehicle insurance company to decide on the annual premium for the commercial vehicle.
Additional Covers: The insured needs to mention any additional covers he may want from the vehicle insurance company. Additional covers for vehicle accessories for example come at a higher premium.
Some other attractive features of motor insurance that customers look for are:
- The cashless servicing facility is available at workshops and garages nationwide.
- Towing assistance.
- Roadside assistance.