What is Commercial Vehicle Insurance?
Commercial Vehicle Insurance is important for the continuity of your business against any sudden situations that might cause a huge financial burden. Because they usually have a high daily mileage, their likelihood of accidents tends to be higher than private usage cars. They also have a higher risk of accidental damages such as being in contact with any falling objects, being stolen, getting vandalised, catching fire as well as damage from flood or lightning. Commercial Vehicle Insurance covers any third-party injuries or property damage, if the driver is liable for it.
Comprehensive commercial insurance helps to ensure that your vehicle can be fully repaired after an accident while minimising financial strain on your business.
What are the kinds of commercial vehicles covered?
Similar to Private Car Insurance, Commercial Vehicle Insurance also offers 3 types of coverages: Comprehensive, Third Party Fire and Theft, Third Party Only. Commercial vehicles play a vital role in the economy, as many of them ferry goods or construction materials. They make up almost 20% of all motor vehicles on the road in Singapore. These vehicles include:
How much does Commercial Vehicle Insurance cost?
Whilst there are some basic factors affecting the cost of commercial motor insurance, key factors which will affect the insurance pricing will be the usage of the vehicle. Commercial vehicles used for Rental and Leasing would on average be 50% more expensive. It is also common for companies to get fleet policies for their commercial vehicle to achieve potential cost savings.
Your claims history, including any no claim discount, can make your premium cheaper.
Insurers have a panel of authorised workshops which it has certified as legitimate and affordable. Choosing insurer “Authorised Workshop” plans are always cheaper as opposed to “Any Workshop” plans.
Frequently Asked Questions
About Commercial Vehicle Insurance In Singapore
- A commercial vehicle insurance plan is a policy which covers damages and losses on commercial vehicles and third parties. Commercial vehicle insurance in Singapore can cover accidents, collisions, natural calamities, and any third-party claims.
Commercial vehicle insurance cannot cover any insurance claims that aren't included in the policy. Examples include:
- Wear and tear
- Damage to goods carried by the commercial vehicle
- Business consequential losses: The company vehicle got into an accident, causing delay of goods. Any costs resulting from the incident aren't covered.
- Mechanical/electrical breakdown
- The driver was found under the influence of alcohol or drugs
- The vehicle is not driven by an authorised driver(s) and/or permitted driver(s).
- The vehicle is not used in connection with the policy owner's business
- The car does not comply with the terms & conditions of the licence.
- Commercial car premiums can be more expensive than private car insurance. This is due to high driving frequency on the road — high driving frequency = more chances of getting into accidents.
- The main difference between personal and commercial car insurance is the vehicle usage. Getting the correct policy that covers the correct usage for the vehicle is crucial. Or else, you run the risk of your claims being repudiated if a wrong usage policy is purchased.
For businesses that provide ride-hailing services, basic car insurance coverage won't be enough. They require comprehensive car insurance that covers:
- Third-Party fire and theft
- Personal accident coverage
- Loss or damage to the vehicle
- Legal liability for negligent actions
- Legal liability for fare-paying passengers
- Comprehensive van insurance policies typically cover accidental damage, theft, fire, and third-party liability. Some policies may also include coverage for medical expenses and personal accident benefits.
Comprehensive van insurance offers comprehensive coverage for accidental damage, theft, fire, and third-party liability. Meanwhile, third-party insurance only covers third-party liability such as:
- Bodily injury or death caused to a third party
- Third Party Property damage
- Legal expenses
- The cost of truck insurance in Singapore depends on various factors such as the age of the vehicle, the type of coverage required, and the type of usage required. Typically, comprehensive coverage for a truck can cost anywhere from $1,200 to $3,000 per year.
- Fleet insurance is a type of insurance policy that covers multiple vehicles owned by a company or organisation under a single policy. This can include cars, vans, trucks, and other types of vehicles used for business purposes.
Fleet insurance is preferred because it reduces administrative work — you’ll only need to review the renewal terms once a year instead of multiple times for each policy. Fleet insurance can also be more cost effective, as multiple vehicles can generally lower the overall cost.
- Fleet insurance policies in Singapore can offer different coverage options, such as comprehensive coverage, third party fire and theft, and third-party only. Fleet policies for private hire vehicles are available as well.
- The cost of fleet insurance in Singapore can vary depending on various factors, such as the number of vehicles in the fleet, the type of coverage needed, and the claims history of the business. It is recommended to obtain quotes with help from an insurance broker who can find quotes from multiple insurers in the insurance market for the best coverage at a reasonable cost.
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