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Commercial Car Insurance Explained - Advantages and Disadvantages

​Regardless of which scale of business you run, if there are automobiles involved, you need commercial car insurance. These insurance covers are designed for both large and small vehicles used in businesses. Any vehicle owned by a business and is driven by the employee or owner can be covered under this insurance policy.

This insurance policy is necessary to protect your financial interests by covering all your liabilities in case of any mishaps. Before you buy commercial car insurance, you should be familiar with its ins and outs. This blog will help you understand the advantages and disadvantages of this insurance cover. Let's delve into the details!

Why Do You Need Commercial Car Insurance?

If you own a business and it includes any given number of automobiles, you need this insurance cover. It will provide coverage for all your motorized vehicles, even if there's just one. Since the government has mandated buying at least liability-only car insurance, it is imperative for your cars anyway.

This insurance protects your business for any damage caused by your vehicles. It is also helpful in tracking your entire insurance cost in one bill. With such commercial insurance, you don't need to repurchase insurance every time you add a vehicle to your fleet and obtain a tailored insurance cover for your requirements. Comprehensive commercial auto insurance, on the other hand, will provide cover for any mishaps with your cars. This includes natural calamities, fire, theft, etc, along with third-party damages or claims.

These insurance cover:

  • Staff vehicles
  • Company cars
  • Cabs
  • Hotel pick-up cars
  • Delivery trucks or vans
  • Dump trucks
  • Forklifts, JCB, and other construction vehicles
  • Service utility vans
  • Box trucks


  • Provides car repair coverage due to damage in case of an accident
  • Survivors of an accident are provided with extra benefits in case the accident caused any deaths
  • Covers for third-party penalty claims
  • Lawsuit coverage, including legal fees, brought against you
  • Provides coverage in cases of vandalism, natural calamities, fire, theft, or even terrorist attacks
  • Provides premium discount in case of theft or owning multiple insurances with the same insurance company.
  • Provision for extending coverage to someone else driving your vehicle with consent
  • In case of no claim within the policy period, the no-claim bonus is awarded during renewals.
  • Can be written off as business expenses and can be counted in as tax deductibles


  • Does not cover for any claims outside the contract
  • Includes deductibles which will be mentioned in the policy papers
  • Does not cover for electrical or mechanical breakdown
  • Any claims arising if the vehicle is used outside the insurer-defined geographical location
  • Any claims arising due to ionizing radiation, nuclear perils, or any subsequent loss or damages
  • There will be no coverage provided in case a mishap occurs while the vehicle is being driven by anyone except the insured driver
    Commercial car insurance can really be a businessman's best friend in case of an automobile-related crisis. It can save you a lot of money that goes in repairing any damage due to an unforeseen mishap. Save all your hard-earned money in the future by investing in the best commercial car insurance policy today!