Private or Commercial Which car insurance do you need
Owning a car nowadays isn’t a luxury; it’s a necessity. Having a car of your own is much more convenient and economical than relying on public transport or booking private cabs for daily travel. However, you must secure your vehicle with a reliable insurance policy before driving it on the road.
Car insurance offers security against accidents, theft, natural catastrophes, or other abrupt circumstances that could harm your vehicle. Owning a car insurance policy protects you from financial losses by reimbursing the claimed amount.
As per the Motor Vehicle Act of 1988, it is mandatory to have vehicle insurance to drive your car on Indian roads. Thus, to ensure the protection of your car, you need to buy an insurance policy. Based on your car type, there are two types of policies that can provide you with financial stability against any expenses. They are as follows:
- Private Car Insurance:Private car insurance is a type of policy that covers expenses related to your personal car. This insurance policy protects you financially against the losses that arise due to accidents, natural calamities, theft, etc. It provides reimbursement for third-party losses. You cannot use a private car for any business activity that requires the transportation of goods or commodities.
- Commercial Car Insurance:Commercial car insurance is a type of insurance policy that is used for taxi, cab, or any other vehicle used for the transportation of passengers or goods. By purchasing commercial car insurance for your car, you can financially protect yourself against any damage. In commercial insurance coverage, you may either go for third-party liability insurance, which is mandatory under the Motor Vehicles Act, 2019.
Should I buy a Private or Commercial Car Insurance Policy?
A private or commercial car insurance policy depends upon the usage of the vehicle. If your car is being used for personal purposes like traveling to and fro your workplace or anywhere around the town, private car insurance is an ideal option for you. On the other hand, if you use your car for commercial purposes like transporting goods or commodities and driving employees or clients around the town, then a commercial insurance policy is a good option for you. You may additionally require commercial motor insurance if you charge money for transportation purposes.
It is crucial to do your research properly and make an informed decision. At Suraksha Insurance, we can help you with the research and purchase of the policy. Connect with us to know more.
