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Is it Mandatory to Get My Commercial Cars Insured?

By Juhi Walia
23 September 2022, 2:01 PM

Commercial car insurance is a car insurance plan that provides: -

  •  coverage against any damages to and from commercial vehicles
  •  all the liabilities and damages in case of injury or death to either party involved

Anyone who owns a commercial vehicle must have commercial car insurance, which is much similar to personal car insurance with a difference in functionality.

Commercial car insurance with third-party liability cover is mandatory for the vehicle owner to have. The cover protects you from third-party liability like personal car insurance. Thus, if you are the owner of a commercial vehicle, you need to insure it with third-party liability insurance.

In this guide, we shall discuss all the necessary aspects pertaining to commercial vehicles, such as their insurance, etc.

What are the Features of Commercial Car Insurance?

 Certain features form a part of your commercial car insurance plan, namely: -

  • It is necessary for all public or private vehicles, especially special goods carrying vehicles.
  • The plan will provide liability coverage in case of injury, death, or during an accident.
  • It will also provide for the financial liabilities that arise against the insurance holder.
  • The plan will also provide third-party car insurance. This means it will cover third-party vehicles, property, and persons.
  • It also provides personal cover to the insurance holder in times of accident or other unfortunate road mishaps.
  • The plan provides for all the monetary liabilities in case of any damage to the insured vehicle.

You should check out the best car insurance company near you. You can also check the websites and apps of various insurance providers to decide.

Types of Commercial Car Insurance

 Depending upon the various features etc., there are multiple types of commercial car insurance, namely:

Comprehensive Commercial Car Insurance

 As the name suggests, comprehensive commercial car insurance will cover all the damages and liabilities against the insurance holder. 

Comprehensive commercial car insurance will provide coverage against: -

  •  Third-party liability
  •  Personal accident cover
  •  Damages to the insured vehicle from manmade or natural disasters such as earthquakes, floods, fire, theft, etc.

It will also provide for all the legal and financial liabilities of the car's driver in case of any unfortunate instance, such as a road accident.

Third-party Liability Commercial Car Insurance

 A third-party liability car insurance will provide coverage against the liability to the third party. In case the third party gets injured or dies in a road accident, a third-party liability commercial car insurance will protect the insurance holder. 

It is mandatory to have third-party liability commercial car insurance. A commercial car carries goods and products for your business. So having third-party liability commercial car insurance is of primary importance.

Inclusions of Commercial Car Insurance

Commercial car insurance covers the insurance holder's medical, financial, and legal liabilities. It includes coverage for loss or damage due to:

  • Fire, theft, explosion, ignition
  • Political unrest
  • Riots, strike
  • Earthquake
  • Storm, flood, hurricane, typhoon
  • Malicious activity
  • Burglary, theft, housebreaking
  • Landslide or rockslide
  • Terrorist activities
  • Hailstorm, cyclone
  • Accident
  • Personal accident claims for injury or total or partial disability of the driver or accidental death.
  • Third-party vehicle damage, loss of life, unintentional injury resulting in partial or complete disability.

Exclusions of commercial car insurance

 Commercial vehicle insurance will not provide for car insurance claims in the following cases:

  • Natural wear and tear of the vehicle
  • War
  • Consequential loss
  • Driving without a license or with an invalid licence
  • Driving after consuming alcohol or any other toxic substances
  • Nuclear acts
  • Electrical breakdown
  • Mechanical failure
  • Inactive policy

Which Vehicles Come Under the Scope of Commercial Vehicle Insurance?

Commercial vehicle insurance is for vehicles used for commercial or transport purposes. These vehicles include but are not limited to:

  • Cars (If used for commercial purposes)
  • Trucks
  • Vans
  • Buses
  • Trailers
  • Taxi
  • Coach
  • Shovel
  • Goods carriers
  • Tractors
  • Cranes
  • Bulldozers

Over and above this, any vehicle or vehicles used to transport goods, products, or passengers from one city to another or from one state to another are included.

Customized Covers for Commercial Vehicle Insurance

 Here are some customized covers for commercial vehicle insurance:

  1. Goods Carrying Vehicle Insurance: any vehicle used for the transport of goods.
  2. Passenger Carrying Vehicle Insurance: any vehicle used for carrying passengers.
  3. Auto Rickshaw Insurance: Auto rickshaws that carry passengers from one place to another.
  4. Special Vehicle Insurance: Other vehicles used in mining, farming, etc. are not included under general categories but are a part of commercial transport.

Renewal of commercial vehicle insurance

You can use online or offline sources to buy and renew your commercial vehicle insurance. For the renewal, you can visit the website of your insurance provider and feed in your insurance details to renew your commercial vehicle insurance by paying the necessary fee.

It is of utmost importance to renew your commercial vehicle insurance as, without it, you will not be able to make claims in case of any unfortunate situations.


Suppose you are the owner of any such commercial vehicle. In that case, you must at least buy the mandatory third-party liability commercial car insurance policy. But if you want to protect your car over and above the basic plan, you must choose comprehensive commercial vehicle insurance. You can tailor the policy to your needs based on the vehicle you drive.

Read more -


1. How to calculate IDV on my commercial vehicle insurance?

The IDV of your commercial vehicle insurance can be calculated based on the vehicle's selling price when buying or renewing the policy. It also depends upon the brand and model of the vehicle.

2. How to check the premium for commercial vehicle insurance before buying?

You can use various online calculators to check the premium price. The price is ascertained basis your vehicle type, add-ons, and base policy.

3. Is claim making easy on commercial vehicle insurance?

Making a claim is as simple as any other vehicle. You can choose to claim your commercial vehicle online by providing all the necessary details about the loss.

4. How can I cancel my commercial car insurance?

You can cancel your ongoing commercial car insurance anytime if no claims are made during the tenure.

5. How do I find the best commercial car insurance?

Suppose you are looking for the best insurance provider for your commercial car. In that case, you need to check and compare various insurance providers and their policy coverages online or on their websites.

After knowing the rates and features of each of these insurance providers, you can choose the policy that fits you the best.

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