Factors that affect commercial vehicle insurance costs are​:

• Insured Declared Value
• Cubic Capacity (CC) of the vehicle
• City of Registration
• Vehicle Model
• Age
• Coverage type ( comprehensive insurance/third party liability only policy)
• Add-on benefits like roadside assistance, fuel assistance, etc.
• No-Claim Bonus

The vehicle is declared a constructive total loss if the accidental loss or damage repair cost exceeds the current market value.

When a constructive total loss claim is filed, you must surrender your commercial vehicle to your motor insurance provider. Vehicle ownership is also transferred to the insurer.

The insurance provider will pay your vehicle's Insured Declared Value after adjusting the deductible. Once your claim is settled, your motor insurance policy will be cancelled. Once you get the final payment, you are no longer required to pay the premium until the policy is renewed.

A Cashless Claim means the insurer will not deal with any physical cash while settling a claim. The insurer will pay the garage directly for the repair. This is only possible if the garage where you took the vehicle for repairs is part of the listed network of garages with which the company is associated.

A non-cashless / Reimbursement Claim means that the insured chose a garage that is not part of the company’s network. In this case, the insured will need to pay the cash to the garage directly, and the garage will reimburse the insured when they produce the same original bills and payment receipts to the insurer.

You need to insure your commercial vehicle to the amount equivalent to its Insured Declared Value or the IDV. Under commercial vehicle insurance, the IDV amount refers to the maximum amount up to which an insurance company will cover the partial/ total damage sustained on the vehicle.

You cannot opt for coverage of more than the IDV of your commercial vehicle. Moreover, you can estimate the IDV of your car by reducing the depreciation amount from the ex-showroom price of your vehicle model.

You should buy an auto insurance policy that at least offers liability-only policy coverage. This is because buying a liability-only policy is mandatory for all commercial vehicle owners under the Motor Vehicle Act of India.

However, you have the freedom to opt for a comprehensive auto insurance policy that offers broader coverage, including damage/ loss due to fire, natural disasters, accidents, and theft, as well as own damage cover in addition to liability-only cover.

While a third-party commercial vehicle insurance policy only covers third-party liabilities, a comprehensive policy also covers damages caused to the driver and the vehicle due to external factors besides third-party liabilities. As a result, a comprehensive auto insurance policy is more expensive than a liability-only policy.

A commercial vehicle insurance policy can be renewed online and offline. If you want to renew your policy offline, you can contact an agent of your insurance company or visit their nearest branch. In case you want to renew your commercial vehicle insurance plan online, you can follow the procedure mentioned below:

• Visit the official website of your insurance provider
• Go to the policy renewal option
• Enter the required details, such as the policy number
• Submit the details
• Pay the premium amount online
• Your insurance policy will be renewed and you will receive the policy document