Tuesday, 02 July 2013 16:50

Commercial Vehicle Insurance

By their very nature, commercial vehicles spend much more time on the road and out in the elements than other cars.  Being on the road increases the risk of accidents, theft and damage. The fact is that many businesses rely on their commercial vehicle fleet and cannot afford to be without them should something unfortunate happen. This is why it is important that a business’s commercial vehicles are fully covered by a comprehensive insurance policy.  Why Commercial
Vehicle Insurance?

Similar to other car and household insurances; commercial vehicle insurance is expected to cover the vehicle in the event of damage caused by an accident. Comprehensive insurance should also cover such incidences as theft and provide third party cover for any other vehicles or property which may be involved in an accident.

Despite the usual cover provided by car insurance, commercial vehicle insurance has several distinctions which should be taken into account.

Commercial vehicles are used in vastly different ways to regular vehicles. The first difference is that commercial vehicles travel far more kilometres than private vehicles, putting them at higher risk simply by the amount of time they spend on the roads. In their day-to-day usage they often carry heavier loads and this puts them at greater risk of damage to the vehicle and a higher chance of being involved in an accident.

Due to the nature of business, there may often be multiple drivers involved in a fleet. The difference here to normal vehicle insurance is the need to ensure that the insurance policy extends to multiple drivers.

Businesses involved in logistics may transport goods and cargo on behalf of other businesses or individuals. In the unfortunate event that an accident occurs or the vehicle is stolen or hijacked, the business’s insurance policy should be able to cover the replacement costs of these goods.

By ensuring that there is adequate insurance cover for the vehicles, drivers and any goods transported by the fleet, businesses can reduce their risk and potential liability should an unforeseen event occur. In the unfortunate event the vehicle is stolen or written off in an accident, some car manufacturers include a ‘deposit protector’ as an option in their policies. This allows the owner of the vehicle to receive a deposit on the vehicle back, even if it has depreciated in value. Other options available include ‘Shortfall Insurance’ to cover the ‘shortfall’ of the vehicle if it is stolen or damaged irreparably and a ‘Return to Invoice Policy’, which guarantees a return on all monies paid on the vehicle if it is stolen or written off.

Due to the reliance that businesses have on their commercial vehicles and the vehicles’ value as a business asset, ensuring that they are comprehensively covered by commercial vehicle insurance should be imperative. If an unfortunate incident occurs, with the right insurance covering the vehicle, it can be replaced in no time and at very little extra cost. http://www.amazines.com/