At the outset, let us understand that the size of the vehicle definitely matters when it comes to insurance. It is also important to consider the purpose of its operations – personal or commercial, features – how well loaded it is with advanced features, and sometimes the terrain – is it continuously stuck with moving on the dangerous mountains.

In this regard, as we take into account truck insurance, we realize that trucks attract more expensive insurance because they fall on the higher side of the aforementioned aspects. Firstly, they are bigger in their size. Secondly, their purpose is inherently deep-rooted in delivering goods and services. As far as their features are concerned, the present-generation trucks are adorned with excellent and advanced features that ensure better maneuverability, higher degree of safety, and less-expensive maintenance.

Finally, trucks negotiate with extremely challenging terrains, hostile weather conditions, and many other unpredictable factors. All these increase the incidence and probability of accidents and breakdowns, thereby constantly attracting truck insurance. The cost of servicing is usually high, and the spare parts are not cheaper too. To add to the woes, if the truck meets with an accident or has a breakdown at a godforsaken place, it becomes even more expensive to ship it first and service it later. The vehicle insurance company thus ends up paying hefty amount, and so the truck insurance is expensive.

Simple, accidents and unforeseen happenings are always on the cards. When the damage is terrible and massive, the cost involved in repairing the vehicle may even be higher than its original purchase price. Are you willing to dig deep your pockets and pay, while trimming down your bank balance whenever your vehicle breaks down or meets with an accident? This is exactly the reason why you need a vehicle insurance that takes of these costs, and reduces your financial burden, by taking a premium amount from you, A few thousands or a few lakhs of rupees as premium cost means coverage in the form of millions of rupees. The government, as per the Motor Vehicles Act, made it mandatory for every vehicle to have at least third-party insurance.

Now, more important factors to analyze before concluding why truck insurance is more expensive:

Insured value

The insured declared value of the truck is generally calculated based on the market price of the vehicle. The on-road price on the given day will surely be higher than its original price. This automatically hikes the premium amount

Higher incidence and risk of damages and breakdowns

Owing to their rough and prolonged use, trucks are prone to more regular breakdowns and repairs. Also, wading through different geographies, geological conditions, and weather conditions, the risks are only getting higher and bigger. Trucks cause road blockages, especially on Indian roads whose conditions are poor and ordinary in most cases. This inherent trait makes truck insurance more expensive

Value for goods

Trucks quintessentially carry goods, and travel across the nation, braving every condition in their way. Therefore, the liability button is pressed and the insurance company is mandated to provide cover for the goods that are exposed to damage or theft. The premium amount is, therefore, higher as a bigger amount has to be paid in these cases.

Road conditions

Indian road conditions are perpetually a matter of concern and unpredictability. Trucks get damaged regularly and are often pulled over. This leads to damage of goods, and also affects the condition of the truck. Often, repairs take a longer period, owing to access, and availability of mechanics and spare parts.

Potential damage caused by trucks

Owing to their monstrous size, loaded heavily, carrying inflammatory and hazardous content, and tired and stressed drivers – all these can cause damage not only to the trucks but also to other vehicles and roads. This can lead to personal, property and time loss. The insurance firms generally pay for third-party damages and losses, along with probable hospital expenses in case of injuries and fatalities. The personal accident cover and damage to the property are covered by insurance companies, and so the premium amount for truck insurance goes up.

Right insurance is the right move

Notwithstanding the highly-priced insurance premia, it is beyond any ordinary doubt that truck insurance is compulsory and cannot be done away with. Therefore, it is important to purchase the right and the most cost-efficient insurance, based on the kind of coverage you would need and as per the function of the truck. Always compare online various insurance offerings, and then calculate the premium based on different plans, add-ons, and other coverage aspects.