Why Are Commercial Vehicle Insurance Add-Ons Important?

Top 5 Reasons to Include Commercial Vehicle Insurance Add-Ons

Here are some common reasons to opt for optional covers with your commercial vehicle insurance at an additional premium:

• Enhanced Financial Protection: Add-ons help cover expenses that are not included in a basic policy, such as engine damage, zero depreciation costs, or loss of income. This reduces out-of-pocket expenses during claims.
• Coverage for Specific Risks: Commercial vehicles face unique risks depending on their usage. Add-ons like IMT 23, IMT 1, zero depreciation, or return to invoice provide targeted protection against such specific damages.
• Minimises Business Downtime: Covers such as roadside assistance and loss of income ensure that your operations are not severely affected if the vehicle breaks down or meets with an accident.
• Better Claim Value: With add-ons like zero depreciation cover, you can receive a higher claim amount without deductions for wear and tear, ensuring maximum compensation.
• Customised Policy Benefits: Add-ons allow you to tailor your insurance policy based on your vehicle type, usage, and business needs, making the policy more flexible and efficient.

Including the right add-ons ensures broader protection, improved claim benefits, and smoother business operations for commercial vehicle owners.

Which Commercial Vehicle Insurance Add-Ons to Choose From?

Commercial vehicle insurance add-ons enhance the protection of a standard policy. They can only be included with a comprehensive policy at an additional premium. Here is a list of the 5 most important car insurance add-ons one must consider:

1. Roadside Accident (RSA) Cover

   This cover provides help when you are stuck in the middle of a highway. If you purchase the RSA add-on cover for commercial vehicles, you get emergency help like towing of your commercial vehicle from the highway or the middle of some road, medical help, fuel arrangement, battery jumpstart, alternative transport, minor repairs, and sometimes even accommodation.

2. Zero Depreciation

   This add-on helps you to recover the cost of replacement or repair of the depreciated part of your commercial vehicle. It is one of the most popular add-ons, especially for commercial vehicles that run within the city and encounter bumper-to-bumper traffic daily. With the zero depreciation cover for commercial vehicles, you can make sure that you recover the full cost of the parts of your vehicle without any depreciation deduction.

3. Return to Invoice Add-On

   This additional cover makes sure that your insurance claim gets settled in a way that you recover your entire loss amount (the on-road cost of your commercial vehicle at the time of its purchase) without any deduction. The RTI add-on cover for commercial vehicles bridges the gap between the Insured Declared Value (IDV) of the vehicle and its value on the invoice.

   The IDV of the commercial vehicle represents the value of the vehicle after depreciation is deducted from its original sale price. However, it is necessary to note that the protection of invoice cover is not available for vehicles that are older than 3 years.

4. Consumable Cover

   Some parts of your commercial vehicle, such as screws, bolts, washers, brake fluid, etc., are known as consumables. A standard policy does not cover the cost of consumables and you must have this add-on for a better claim amount.

5. Accessories Cover

   The accessories add-on cover for commercial vehicles helps to cover damages caused to common electrical and non-electrical accessories. It helps to cover GPS devices, seat covers, bumpers, bull bars, etc.

6. IMT 23

   The IMT 23 add-on cover offers protection against damages caused to uninsured items of a commercial vehicle. It covers common parts, such as tyres, tubes, lamps, bumpers, etc., after applying the applicable depreciation. It is helpful for commercial vehicles that are used in rough conditions.

Summing It Up!

Having an add-on cover for your commercial vehicle is like providing additional safety to your vehicle against unwanted events such as damage, accidents, or theft. However, if you are thinking to purchase an add-on cover just because a friend of yours has bought one, then do not do this. You should understand your requirements very carefully and then only select an add-on that best suits you and fulfils your unique and specific needs.