It is quite easy to understand why you need to purchase coverage for your personal vehicle. You would like to safeguard your property as well as protect the lives of your dear ones. Moreover, it is compulsory by law in several States. But to know when to avail commercial insurance is a completely different fall fame altogether. However, there are some kinds of vehicle usage, which do not fall within the scope of a personal vehicle insurance policy. If you are an entrepreneur or a businessman and are using a vehicle exclusively for your business, then commercial vehicle insurance is needed. Moreover, when your vehicle has commercial tags, you must purchase a commercial coverage for it.
There are several instances when a businessman may be using the same vehicle for both pleasures as well as business. When your business owns a vehicle, you need to ensure that the. Business’s name appears on your policy not in your name but as a “principal insured”. Such a step will help remove confusions when you may require to file your claim or done files a claim against you.
Whether you should purchase commercial vehicle insurance in Singapore will also depend on the type of driving done by you. A reputable insurance agent will probe for detailed information about how your business uses the said vehicle, who will be the drivers and in case you have hired employees, whether they have the likelihood of driving their personal vehicles for your business.
You need to understand when a vehicle is known to be deployed for business use. A vehicle used for business is one that is used for commercial purposes for at least more than three times on an average during a period of 30 days. If you find they it is happening in your case, then commercial vehicle insurance is something that you should definitely go for.
What is defined as “business use”?
This is a crucial concept with respect to commercial vehicle insurance. When you merely use a vehicle to commute to and fro from your main workplace, it is regarded as commuting and you need not purchase a commercial policy. In fact, then the vehicle is required to be covered within the ambit of personal vehicle insurance. But when you are driving the same car to travel to clients? Offices or other job sites, vases based on how frequently you do it and your work type, you could be requiring commercial vehicle insurance .
Though the key coverage for the personal auto policy and its commercial counterpart may look same, both of them differ in several technical aspects. Contact your insurance agents to explain the distinctions properly.