Business & Finance

Knowing When You Need Commercial Car Insurance Policy

Personal car insurance, specifically third-party insurance, is required by everyone who owns a car. However, based on your usage, you may need commercial car insurance. It is important to understand the situations when you need commercial car insurance and ensure you keep yourself and your business secured from risks.

Take commercial car insurance from established car insurance companies in India and other well-known insurers such as Bajaj Finserv. This policy helps you to cover repair expenses arising due to an accident, secure your car loan if your vehicle suffers a loss, and protects both employees and passengers.

You will need commercial car insurance in the following situations.

  1. Based on the registration of the vehicle

The most important factor that determines whether you need car insurance for a commercial vehicle is the name under which the vehicle is registered. If the car is registered under a business name, you need commercial car insurance. In case the vehicle is registered in your name and you run a sole proprietary business, the car may still need commercial car insurance. You will need to analyze the primary use of the vehicle. If the vehicle is being used primarily for business, you will need to get commercial car insurance.

  1. Depending on who is driving the vehicle

Another clear way to determine whether commercial car insurance is applicable to you is to check whether the employees of your business or company are driving the car. Commercial car insurance allows you to mention the names of the employees as drivers to enable you to protect yourself and your company from risks.

commercial car insurance

  1. In case the vehicle is used for business

Still confused? If you find that the car is also being used for commercial use apart from personal use, use this rule of thumb. If the car is being used more than three times for business use in a month then you should get commercial insurance for the vehicle.

Traveling to and from your place of business is not included in the definition of business use. When the car is used to travel to job sites or for the following then the car needs commercial insurance.

  • Carrying equipment needed to execute a project
  • Carrying inflammable or hazardous material
  • Carrying housekeeping material for a business
  • When the vehicle is equipped with cranes or winches
  • Towing vehicles
  • Delivery vehicles including delivery of flowers, pizza or retail
  • Newspaper delivery
  • Trucking vehicles
  • Taxi services

When buying car insurance, it is important to take the best car insurance policy for yourself based on usage. In case the usage of the vehicle is not as per the insurance policy, any accident claim can be denied by the insurer. So, check car insurance online to see if you can a good offer and get started today. To apply hassle-free with a customized offer, check your pre-approved insurance offer from Bajaj Finserv.

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