Top 10 Mistakes People Make While Buying LCV Insurance

LCV insurance is meant to protect your commercial vehicle, business operations, and finances. But many owners make common mistakes that either increase their premium or reduce their claim benefits. If you’re buying LCV insurance in 2025, avoid these pitfalls.

1. Choosing the Cheapest Policy

Low premium looks attractive but often means:

• Low IDV

• Minimal coverage

• Higher deductibles

• Slow claim service

Focus on value, not just price.

2. Not Understanding IDV Properly

Many owners let insurers decide IDV without cross-checking the market value.
Low IDV → low claim payout
Over-inflated IDV → unnecessary high premium

Know your vehicle’s true worth.

3. Ignoring Add-ons

Add-ons are crucial for commercial vehicles. Examples:

• Zero Dep Cover

• Engine Protect

• Roadside Assistance

Skipping them leads to massive out-of-pocket expenses during claims.

4. Sharing Incorrect Vehicle Details

Wrong information like:

• Incorrect GVW

• Vehicle type

• Registration area

• Use category (goods carrying / personal use)

…may cause claim rejection.

5. Not Comparing Multiple Insurers

Every company offers different:

• Premium

• Add-ons

• Claim process

• Network garages

Comparing 4–5 insurers can save you a lot.

6. Not Reviewing Policy Terms

Exclusions are usually ignored:

• Tyre damage

• Mechanical breakdown

• Electrical failures

• Drunk driving

• Overloading

Understanding terms helps avoid claim disputes.

7. Buying Insurance Late

A lapsed policy means:

• Mandatory vehicle inspection

• Higher premium

• No Claim Bonus loss

Always renew on time.

Conclusion

Avoiding these mistakes ensures you get the best coverage at a fair premium, along with quick and hassle-free claims.