School bus insurance cost is a kind of commercial auto insurance that covers school buses and their drivers. It includes liability coverage for bodily harm or property damage caused by the school bus, as well as physical damage coverage for bus damage.
How Much Does School Bus Insurance Cost?
The cost of school bus insurance for a 12-seater bus is 24050 for a third-party policy with a one-year coverage duration. It covers third-party property damage up to 750000 rupees and provides liability coverage in an unlimited sum for third-party deaths or injuries.
Types of school bus Insurance
- Third-Party Insurance – In the event of an accident, third-party insurance provides coverage for losses incurred by the insured as a result of third-party property damage or injury or death to a third-party person. Third-party insurance does not cover bus damages, and there is no way to claim for vehicle loss with third-party coverage.
- Comprehensive Insurance – In addition to covering all of the items described above in the third-party policy, comprehensive coverage for school buses will also cover damages to the vehicle in the event of an accident, theft, fire, or damage caused by any external causes.
Read Also: What Is A Line Of Credit?
Because third-party policy coverage is limited to property damage and liabilities to third parties and does not cover your own vehicle, comprehensive school bus insurance is always recommended.
Top 3 Factors Which Decide School Bus Premium
- Coverage type – Comprehensive coverage for school buses is slightly more expensive than third-party coverage.
- Bus seating capacity – One of the most significant factors in determining school bus premium is the vehicle’s seating capacity. Higher carrying capacity school buses usually come at a considerable price.
- Claim History – A good driving record helps to minimize school bus premiums because no-claim bonuses always aid in reducing own damage premium costs.
How Does Insurance Protect Your School Bus?
Accidents
Comprehensive or first-party school bus insurance covers damage to or by a school bus in the event of an accident. [Coverage Is Limited To The Sum Insured]
Read Also: What Opportunities Do Investors Have During a Bear Market?
Fire
In the event that a school bus is damaged or destroyed in a fire, the insured’s losses are covered by the school bus insurance policy. To obtain such benefits, it is always essential to have comprehensive insurance.
Theft
School bus insurance protects against the loss of a school bus due to theft.
Losses To Third Parties
Third-party property losses are covered for 7.5 lac, while third-party injuries/deaths are covered for an infinite amount.
Natural catastrophes
Floods, theft, lightning, and other natural disasters can cause partial or entire damage to school bus insurance.
What Isn’t Included?
Read Also: Top 3 Mobile Loans Apps To Get a Loan in Nigeria Without BVN
It is critical to understand your school bus insurance coverage and your claim entitlement in order to understand it. Among the similar exclusions are:
- Unethical Driving- When an accident or tragedy occurs while the driver is under the influence of alcohol or another intoxicant. Furthermore, if the driver lacks a valid commercial vehicle driving license. The claim is being denied.
- purposeful Loss- If you suffer a loss as a result of purposeful conduct, your claim will be denied.
- Consequential Loss- When a loss or damage is caused by the insured’s or a third party’s conduct. party’s Driving in the rain, for example, is harmful to the engine. It is not going to be covered.
- Normal Wear and Tear- Any damage to the vehicle caused by a known cause, such as a damaged engine due to oil leaks over time, will not be covered.
- National Emergency- Any damage to the vehicle caused by war, civil war, mutiny, any nuclear-related hazard, nuclear weapons, and so on will not be covered.
Read Also: Inflation Adds to Financial Stress This Year — But Should it Change How You Invest?
