Important Truths about Commercial Vehicle Insurance
Commercial vehicles are motor vehicles which are designed or equipped to transport goods and passengers. These types of vehicles increase the efficiency of a business by making it easier to move the enterprise’s goods from point A to B. The transportation of passengers and goods is the core competence of some businesses. Whatever the purpose of the commercial vehicle, commercial vehicles should be insured not as any other vehicle but as a commercial vehicle. This article will deliberate on some important truths about commercial vehicle insurance.
The capacity and uses of commercial vehicles are different from private vehicles. It is important to come out clean and explain to the insurance vehicle the type and uses of the vehicle so that it is insured appropriately. Although many businesses and private vehicle owners view insurance as an extra expense, it is actually an investment as we will see herein. It is important to employ qualified, careful, and experienced drivers. However, the experience is not a shield against accidents. There are occasions where a driver will use great care and technique and yet still be involved in an accident.
When motor vehicle accidents occur, motorists, passengers, and passersby can suffer minor or serious injuries that alter their lives. In worst-case scenarios, people lose their lives due to automobile accidents. Further, due to accidents, people’s properties can also be destroyed. The law allows victims of accidents and property owners to seek competition for injury and losses that are caused due to the negligence of a third party. If an accident occurs and a commercial vehicle does not have insurance or is operating with an expired policy, the business will be held directly liable.
As we all know, human life does not have a monetary value. This is to means that no amount of money can really compensate for taking away the life of a person. When an accident happens due to the negligence of a commercial vehicle driver, the courts can opt to award huge compensation amounts to allow the victims or loved ones of the victim to bear their loss or harm. Equally, the courts also compensate for property damages caused by negligent accidents. It is more bearable for an insurance firm to bear this cost for an individual business. Compensation sums can run into millions or even billions of dollars. Since insurance firms are a pool and collect policies from several businesses and individuals for the eventuality of an accident, they can survive the loss of compensating huge amounts.
Apart from third party coverage, other policies can come in handy in the event of an accident. A good example is a medical coverage. Medical coverage takes care of the truck drivers or passenger medical expenses in the event of an accident. Another crucial cover is the uninsured or underinsured cover. This helps the commercial vehicle to repair their vehicle if the third party is not insured or is underinsured. Vehicle repairs can be very expensive and the business management can rest easy knowing that their insurer can cover damages on their freight.