car insurance transport Blog Image

car insurance transport

8 July 2023

Transportation car insurance is one of the types of car insurance that owners of public and private transport companies, whether for people or goods, are looking for, as this type of insurance ensures the protection of the car in the event of any damage resulting from an accident, or even the matter may reach the complete replacement of the car, and some types of car insurance also include the protection of passengers or goods loaded through it.

For the owners of transport companies, car insurance is an indispensable necessity, as all their capital is considered inside transport vehicles, and some of them are more vulnerable to accidents, especially if they are responsible for transporting goods on dangerous roads, and therefore protecting and securing them and the loaded goods is a duty to avoid exposure to a large financial loss that may lead the company to the end, God forbid.

If you are an owner of transport cars for goods or people, and you are looking for the best insurance policy for your car to protect it from any unexpected losses, here are the best full details about the types of transport car insurance in the following article, and if you have any other inquiry about you can contact us as soon as possible to clarify more.

What is Transportation Car Insurance?

Motor Insurance Transportation is an insurance policy that falls under the list of car insurance, and it is a policy that insurance companies provide to protect owners of transport vehicles, whether for "goods or persons", in order to protect them from any unexpected losses resulting from personal accidents, during the transport of goods or as a result of damage to the car's parts.

What are the types of car transport insurance?

Car insurance is divided into 3 types as follows:

  • Compulsory car insurance: It is insurance for civil liability that occurs as a result of the accident of rapid transport vehicles, as it is responsible for covering the insured for any physical damage suffered or inflicted on others, and this type is the most important ever in the case of licensing transport vehicles.

  • Comprehensive insurance or supplementary car insurance: It is the type that covers the damage caused to the car itself as a result of the accident on it, and also bears the material costs inflicted on others.

  • Car insurance against fire and theft: As indicated in the name, it is responsible for compensating the insured for the car in full in the event of fire or theft.

How much does the motor transport insurance policy cover?

In most cases, the insurance company employs the insurance policy to protect the car from most of the damages it may be exposed to, so that the insurance policy includes protecting the insured's car from:

What are the exclusions not covered by the Motor Transportation Insurance Policy?

  • It's also important to know what the transport truck insurance policy doesn't cover, and here are some of these situations:

  • Damages to the third party policyholder in the event of a third party liability policy only, as damage to the other vehicle is not covered.

  • Driving a car while drunk or without a license if the owner of the truck is driving it without a valid license.

  • Joint negligence: any damage resulting from the joint negligence of the driver - owner.

  • Damage to the vehicle after an accident; any damage that is not a direct result of the accident (for example; after an accident, if the damaged truck is used improperly and the engine is damaged, it will not be covered)

What types of trucks can be insured in motor transport insurance?

All trucks used for commercial purposes can be covered, and these trucks can be broadly classified into the following:

  • Pickup trucks: Vans are one of the smallest types of trucks available. It is commonly used in commercial, domestic and local pickup trucks such as the famous Ashok Leyland Dost which you may have seen a lot on Indian roads.

  • Light trucks: Light trucks are types of trucks commonly used to transport goods from one city to another, for example; a lot of e-commerce players in today's market often use light trucks for daily transport.

  • Medium trucks: As the name suggests, medium trucks are slightly larger than the usual transport trucks also known as light trucks. These trucks are usually used to transport larger goods such as furniture, landfills, etc.

  • Hazardous Road Trucks: Hazardous road trucks are heavy-duty trucks used primarily for purposes such as towing cars and construction purposes.

What factors affect my truck insurance premium?

  • Make, engine and truck make: When it comes to any type of car insurance, the make, make, and engine play a big role in determining the right premium, and similarly, the model and year of manufacture of your truck will also have an impact on the premium on your truck.

  • Truck type and purpose: There are a variety of truck companies used for different purposes. The premium for your truck can vary at different levels, depending on the type and purpose of the truck. For example, a cargo truck will have higher insurance premiums than those of a pickup truck. This is because the truck carrying the goods will be larger in size and will also be responsible for the value of the goods it carries.

  • Location: Obviously, the location of your truck will have a big role in determining the insurance premium for your truck. Therefore, whether your truck is registered and will operate in an urban city, mountainous area, or small city, all these factors will be taken into account when determining the insurance premium for your truck.

  • Type of Truck Insurance Policy: There are two basic types of insurance available for all commercial vehicles. So the premium on your truck depends on the type of plan you choose. While the mandatory and only liability plan comes at a lower premium – it only covers third-party damages or losses to a third party and a personal accident to the owner driver; while the standard package policy may be higher in premium but will also cover damages and losses to our truck and its driver respectively.