A car insurance plan compensates the policyholders for financial losses incurred because of accidents. Depending on the type of vehicle a policyholder owns, one can get coverage under general or commercial car insurance policy.
What is general and commercial vehicle insurance?
A general car insurance plan is for vehicles that are owned for personal use. On the other hand, commercial car insurance policies are for lightweight, medium or heavy commercial vehicles, etc. deployed by business organizations for transporting passengers or goods. Depending on the type of vehicles, the premium amount may also vary between these two types of insurance policies.
Apart from this fundamental difference, there are no significant dissimilarities other than the insured assets. Moreover, both general and commercial vehicle insurance policies are categorized into third Party car insurance plan and comprehensive car insurance policy. You can avail both of this coverage under the car insurance scheme offered by reputed insurers in India.
- Third party insurance cover
Third party insurance protects an insured individual against any financial loss in case of an accident which caused physical or property damage to a third party.
However, this scheme will not financially cover for damages incurred on the vehicle owned by the insured individual.
- Comprehensive insurance cover
With a comprehensive car insurance policy, the policyholder gets an all-round coverage like damages incurred from collisions, natural events, fire or vandalism, etc. It is a more extensive car insurance scheme that covers damages to your vehicle and other people’s property as well. Furthermore, you are also compensated for financial loss caused after an unforeseen incident that might cause damage to your vehicle.
Following this guideline, you will gain a clear idea between the general and commercial insurance schemes and the types of coverage they offer.
Read Also: General Car Insurance Vs Commercial Vehicle Insurance
