In Malaysia today, car insurance comes in all forms, shapes and specifications. Having a working grasp on what is what, and how the various vehicle insurance policies are relevant to you goes a long way in helping you make the best decisions, insurance policy-wise. As a driver familiar with the basics of how transportation works in the country, you must’ve heard a thing or two about commercial vehicle insurance.
Join Fincrew Official Telegram Channel
What Is It? How Is It Different From Regular Car Insurance?
Is there some particular benefit I can get for opting for this form of insurance? These questions and more might’ve crossed your mind. Here, you’ll receive a basic rundown of what commercial vehicle insurance is and if it’s for you.
Commercial Vehicle Insurance Explained
Simply put, commercial vehicle insurance is the policy you take out on vehicles (taxis, trucks, tippers, etc.) that you use in running a business. Consequently, as the name suggests, you get this type of insurance to cover damages caused by/to a vehicle you use for commercial purposes.
What Does It Cover?
At its core, commercial vehicle insurance covers the same things that the vehicle insurance you know protects. That is, with commercial vehicle insurance you also get the classic Third Party, Third Party, Fire and Theft or Comprehensive coverage, depending on your preference.
Third-Party Coverage
Because no vehicle can be on the road without insurance, the Third Party Coverage is the most elementary insurance policy you can take out on vehicle/vehicles you employ in any capacity for your business. In keeping with the primary purpose of insurance which is to soften the financial blow from any accident, this policy covers compensation (to a certain extent) if your business vehicle damages
another individuals’ property or vehicle. Third-Party insurance strictly doesn’t cover beyond that.
Third-Party, Fire and Theft
The Third Party, Fire and Theft insurance policy is a significant upgrade from the elementary Third Party insurance coverage. Beyond simply ensuring that you don’t have to cover the larger percentage of the cost of damages resulting from a road accident out-of-pocket, it also serves to shield the insured (your business vehicle) if it is ever involved in a fire incident or falls prey to theft.
Comprehensive Policy Package
Getting a comprehensive insurance policy for your commercial vehicle combines all the features of the basic Third Party package plus the coverage of the Third Party, Fire and Theft. It introduces new and unique features of its own as well. For instance, neither of the above of the packages above extends coverage to your commercial vehicle if it is vandalized. Also, the Comprehensive helps you insure the vehicle should it be involved in the act of nature, such as a storm that wrecks it.
Join Fincrew Official Youtube Channel
How Exactly Does It Work?
Similar to when you drive your car, accidents occur, whether you plan for it or not. Commercial vehicle insurance helps you get ahead of this eventuality and protects you from suffering major financial loss. Depending on the scope of your business and your choice as a business owner, you can opt to have the commercial insurance cover just a single vehicle or the entire fleet as a whole. To sum up, taking a commercial vehicle insurance policy secures your business and serves as a much-needed financial shock-absorber that will always come in handy! So take a look in-house, determine what type of policy will serve your needs and go for it.
