Difference between Car insurance and commercial vehicle insurance
Many people have questions regarding why there is a difference between personal car insurance and commercial vehicle insurance even though both the vehicles run on the same roads and are exposed to similar dangers while on-road. They may be right in questioning the difference between commercial and personal car insurance. To justify the difference, we will start with the utility of a commercial vehicle and a personal car. A commercial vehicle is used for transporting men and materials from one place to another, thus its running is much more than that of the running of a personal car which is used only by a family. Commercial vehicles often run across borders as well which is not the case with all the personal vehicles. Even if a personal vehicle is driven across the borders, its distance of travel is limited in comparison with the commercial vehicles. Furthermore, due to the variance in the utility of both the types of vehicles, their technical specifications, service and maintenance needs, capacity, etc. also have to be different so that they can easily cater to the purpose they are being bought for.
Since, there is a huge difference in the technical specifications, utility, and exposure of commercial vehicles and a personal car, their insurance requirement will be different. The vast difference in the insurance policies of the commercial and personal vehicles allows covering threats specific to both of them under their respective insurance policy. Some common threats like theft, accident, damage due to storm, fire, flood, etc. are covered under a car insurance policy of both the commercial and personal utility vehicles. However, the extent of the coverage may differ in both of them. Various companies offering car insurance in Ireland have different policies for personal cars and commercial cars. For each type of vehicle, car insurance companies further have different types of covers to match them with the numerous requirements of various car users.
Commercial car insurance policies are designed specifically to cater to the business requirements of the commercial vehicle owner because the owner of the commercial vehicle has more public dealing and thus, he and his vehicle are exposed to greater risks. Commercial auto insurance is usually costlier than personal car insurance because commercial car insurance Ireland includes wider coverage for maintenance, repairs, accidental damage, unexpected losses, etc. The coverage for third-party liabilities is also greater in commercial car insurance in comparison with personal cars because more third parties are likely to be involved in every road trip of the commercial car. Goods transported or the passengers traveling in the commercial car are also covered for supporting the commercial vehicle owner in the event of any kind of loss that may occur to the vehicle or goods in transit or the passengers traveling in his vehicle. Whereas in personal car insurance, only the car owner, driver, passengers traveling, his goods, car equipment are covered up to a limited extent. This difference in the coverage determines the cost of the car insurance premium for both types of vehicles.
People should buy the type of car insurance in Ireland according to the type of vehicle they are driving. If someone is using a personal vehicle for commercial purposes, then his insurance needs will be different, and if he is using a commercial vehicle for personal use, then he should not pay high for commercial vehicle insurance as he will need less coverage for his personal use of the vehicle. Which car insurance policy is apt for your requirements of the vehicle you own? What extent of coverage will you need in your commercial car insurance policy or personal car insurance policy? These questions can be best answered by an insurance buddy at a renowned car insurance Ireland company after assessing your particular car insurance requirements thoroughly. So, get in touch with one and buy or renew your car insurance on time to ensure a hassle-free and peaceful drive.