Overview

Car insurance is a great tool to protect your finances against expenses incurred due to damage to your car. Be it a commercial or personal car, insuring your vehicle is not only mandatory but also essential. It acts as a financial safety net against threats like accidents, natural calamities, theft, man-made disasters, and more. 

Since a commercial vehicle generally runs more than a personal one, it will require a different cover for accidental damages and losses. Hence, it is important to know the differentiating factors between commercial vehicle insurance and private vehicle insurance.  So, let us explore these two types of car insurance plans in detail.

What is Private Car Insurance?

A car insurance plan for a four-wheeler that is owned for personal use is known as Private Car Insurance. Under Private Car Insurance, you will see 2 types of plans–comprehensive car Insurance and third-party liability insurance. The former includes both own damage cover and third-party liability cover, whereas, the latter protects against third-party losses only. Hence, comprehensive car insurance is the most recommended type of motor insurance for maximum financial protection.

What is Commercial Car Insurance?

The commercial motor insurance plan covers a car that is owned for commercial use, especially as a taxi or a cab. The coverage for this type of insurance is slightly different as it involves other risks. In the case of commercial vehicles, there are multiple factors like passengers, the driver, and the basic financial cover against damages to the vehicles. And they can influence your business greatly, thus buying an insurance plan for your cab or passenger vehicle becomes important.

Difference Between Private and Commercial Car Insurance

Check out the below table to understand the difference between a private car insurance plan and a commercial car insurance plan:

Particulars

Private Car Insurance

Commercial Car Insurance

Risk Factor 

The risk factor is low as a private car runs lesser kilometres. Hence, the premium for such insurance plans is also comparatively lower.

The risk factor in commercial vehicles is higher as it is always on the run. Thus, the premium rate of commercial insurance plans is comparatively higher.

Coverage

It offers financial coverage against damages or losses due to accidents, fire, theft, natural calamities, etc. It also covers third-party liabilities and own damages (provided you choose a comprehensive plan).

This type of insurance offers financial coverage against any business losses due to the damages caused to the insured commercial car. It protects drivers and offers an optional cover for passengers. The commercial car insurance plan also covers expenses incurred due to fire, theft, natural calamities, accidents, and more.

Mandatory Cover

Third-party liability car insurance

Third-party liability, driver, and passenger cover

Documents for Claims

Driving Licence, Registration Certificate, FIR (if required), a copy of insurance policy, cash receipts (in case of reimbursements), and original repair bill.

Load Challan, FIR, Vehicle Permit, Fitness Certificate, Registration Certificate, tax records, FIR, Driving Licence, and policy document.

Claim Process

The process shall be initiated on receiving FIR or on-spot survey/inspection by the insurer.

FIR is not a mandatory obligation unless required. Get the vehicle repaired at a network garage for cashless facilities or get a reimbursement.

Can I Convert My Commercial Car Insurance Into Private Car Insurance?

Yes. You can convert your commercial vehicle insurance plan into a private motor insurance cover. However, to do so, you need to legally convert your vehicle into a private one. And this may require you to register your car as a private vehicle by visiting your Regional Transport Office. Generally, during the conversion process, the vehicle is inspected by authorised officials. 

To Conclude

The difference between commercial and private car insurance plans is that both are specially designed to suit two different car usage--commercial and personal. The coverage and premium for commercial motor insurance plans are generally higher. So, if you use your four-wheeler for personal use only, you must opt for a personal car insurance plan. At Bajaj MARKETS, we offer a range of motor insurance plans and add-ons to help you customise a best-suited cover. Buy your car insurance with us for a quick and hassle-free buying experience.

Check Out Car Insurance Plans Available at Bajaj MARKETS

 

FAQs on Commercial Car Insurance Vs Private Car Insurance

  • ✔️What is a commercial car?

    Commercial cars are vehicles used commercially for transporting goods or passengers.

  • ✔️What is a private car?

    A private car is a vehicle used for personal use only.

  • ✔️Can I use private car insurance for a commercial vehicle?

    No. You cannot use private car insurance for commercial vehicles.

  • ✔️Can I use commercial car insurance for a private vehicle?

    No. You cannot use commercial car insurance for private vehicles.

  • ✔️Can I buy car insurance online?

    Yes. You can buy car insurance online on Bajaj MARKETS.