ScienceLovers - If you own a private vehicle, you must have heard of car insurance. Just like other insurance, car insurance is a protectio...
By paying a certain amount of insurance premiums every month, the insurance company will reimburse a certain amount of funds when the vehicle has an accident, damage, theft and other misfortunes.
Owning a vehicle is certainly at risk of accidents and loss. Moreover, the traffic in several big cities in Indonesia can be very congested and there are still many reckless drivers. The world health agency, WHO, noted that traffic accidents are the biggest cause of death in Indonesia besides coronary heart disease and tuberculosis.
In fact, every day there are always news of traffic accidents everywhere. Even when you as a driver have tried to be as careful as possible, when there are other drivers who are reckless, you could be affected.
To reduce the risk of death or serious injury due to accidents, automotive manufacturers are continuously improving the safety quality of the cars they produce. However, the risk of the vehicle being damaged due to an accident or carelessness on the road is very large.
Starting from a scratched car body to completely damaged can happen. And especially for cars and other four-wheeled vehicles, repair costs are certainly not cheap. In addition, the rate of motor vehicle theft is also quite high.
Cars that you park properly in your yard can have their windows shattered, their keys broken and even lost without a trace. That's why car insurance can greatly reduce the costs borne by the owner if something unexpected happens.
Types of car insurance
To minimize losses in owning a private car, taking car insurance is highly recommended.
Indeed, the amount of premium that must be paid may seem expensive at first, especially if your car is rarely used or the environment where you live is quite safe. However, we will never know what could happen in the future.
Trust that insuring your car will give you relief when the bill is received when your car breaks down or is involved in a traffic accident.
Until now, there are two types of insurance offered to car owners according to their needs and situations.
You can choose which one is the most appropriate with the premium that best benefits your situation as follows:
All risk car insurance
By taking the All Risk insurance option, the insurance company will cover all the damage suffered by the car, both large and small. Even if the owner wants to claim insurance just to fix one minor scratch, the insurer will replace it.
Usually if you buy a new car on credit, this type of insurance is included in the purchase agreement. The longer the installment period, the greater the premium that must be paid.
Of course, with comprehensive protection like this, the insurance premium will be much higher, but the owner no longer has to worry about the risk of damage and loss that may occur.
Total Loss Only (TLO) car insurance
This type of insurance will only replace if the car is completely damaged or completely lost. What is meant by total damage is damage that occurs above 75%.
So if the damage is less than that, the owner will not get reimbursement from the insurance.
The premium, of course, is much lower than all risk insurance, but the owner cannot claim the insurance as long as the car is still running well even if the car body is ragged and full of scratches.
In addition to choosing one of the insurances above, the owner can also combine the two insurances. For example, you have just bought a Toyota Alphard 2 4LX, it is highly recommended to take out All Risk insurance in the first years.
For a relatively new luxury car, of course spare parts and repair costs are still quite expensive. Even if the car has scuffs or scratches, of course you will feel sorry for just buying it.
By taking out All Risk insurance, these repairs don't have to worry you anymore.
After entering the third year and so on, you can switch to TLO Insurance because of course the price of spare parts and repair costs has been relatively low and maybe the condition of the car is not as good as it used to be.
Therefore, you should adjust to personal conditions and the surrounding environment when choosing insurance. Especially if you have high mobility, drive long distances, live in a major theft-prone city or have a car rental business or driving class.
Taking All Risk insurance will be very profitable because the risk of minor damage due to accidents, carelessness and crime every day is very large.
But if the car you have is old enough, rarely used and more often parked at home, then TLO insurance alone is enough to anticipate the risk of loss and damage that may occur.
