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​The working of a commercial vehicle in India is a lot different. If your business is dependent on the movement of a vehicle from one place to other and if it falls under commercial range then you must be ready to encounter anything on the road. It could be anything from bad weather to animal crossing. Also, as your vehicle runs more than a general vehicle it would be more prone to drastic things. There is no true way to predict that your vehicle will always be safe on the road even if you have the safest driver the chances are anything could happen anytime. 

Therefore, for proper protection having commercial vehicle insurance ​is a must. Commercial vehicles have a great variety and thus it is necessary to know especially with these vehicles that how the premium is calculated. Knowing these factors will help you make a better decision for your insurance and some of the factors could also surprise you as they could be very different from what you had expected. The factors affecting the premium of a commercial vehicle are:

Vehicle Type and Use

A lot depends on how you are using the particular vehicle for your business is it simply a taxi used to carry riders or a truck used to transport goods. A lot also depends on what type of goods are being transported. Commercial insurance of the vehicle varies greatly depending on these factors. The trucks, loaders and tractors weigh more than a general vehicle and thus are expected to do more damage on the road. Thus, insurance for these parties will be different. 
Rates will also depend on the purpose the vehicle is used for. There are a lot of classifications which decide the rate and affect the final calculation. 


This is rather unexpected but the person driving your vehicle will also affect the premium rate of your vehicle. Every person who drives your vehicle has a driver’s registration number on their driving license. From that number, the claim history would be checked. If you are driving with someone who possess lower risk you will see substantial saving in your insurance premium. The inverse is also true and thus you must choose your driver wisely for your commercial insurance as it does affect your premium rates.  


Driving on the country roads is much more different than driving in a busy city. Where you drive your vehicle decides the risk your vehicle possess to other riders. Therefore, various states and territories are divided into different rating categories. These rating categories and the place where you drive will decide your premium while getting insurance. 

Credit Score

This includes all the financial factors like bankruptcies, payment history, collection, outstanding debts, turnover and all the financial details of the business which decides your premium. 
Now that you know these factors it will be much easier to buy commercial vehicle insurance and get your vehicle ready for the road and enjoy safe driving.