Sciencelovers - Insurance is still not an attractive financial instrument for most Indonesians. Whatever its form, the insurance business is...
Sciencelovers - Insurance is still not an attractive financial instrument for most Indonesians. Whatever its form, the insurance business is sluggish and has not succeeded in attracting large numbers of customers like banks or the stock market.
This practice is different from other countries, where insurance does not only concern personal and crucial matters such as life or certain body parts.
In some countries, insurance even covers motor vehicles – in this case a car – and it is mandatory. If a citizen – who owns a car – is not affiliated with car insurance, then it is very likely that he or she is not only involved in financial problems, but also legal problems.
Those who live in countries like the United States, United Kingdom, Singapore or India are certainly familiar with similar obligations. Like life insurance, spending on car insurance also makes people frown.
Imagine, there will be times when you question the usefulness of car insurance itself. Just like life insurance, if you've never made a claim or just got a car, car insurance can be frustrating and stressful because of the combination of having to spend money (in large amounts) and not getting anything in return.
However, you need to be aware that auto insurance – like life insurance – does have its uses and is not a form of fraud. Believe me, there are many advantages to be gained from joining car insurance. It could be, the advantage itself you have never realized.
The first thing you have to understand is that insurance is a game of chance. It could be that later there is a condition where your car is really damaged and you happen to be joined by car insurance but it turns out that the damage is not replaced by insurance.
It is at times like these that you feel car insurance is pointless and just a fraudulent practice. But, it is precisely at this time that you feel the direct benefits of the existence of car insurance. How did it happen?
When you experience damage but can claim, it means your PLPD is still there. What is meant by PLPD is Personal Liability and Property Damage. This is one of the most important parts of auto insurance coverage. However, PLPD does not cover physical damage to your car. Instead, PLPD provides protection for you for other types of losses such as:
- Wounds, pain and disability
- Property damage
- Medical expenses for you
PLPD car insurance protects you from lawsuits. If you happen to be the guilty party in the accident, then the injured party will most likely demand compensation from you.
If you do not have car insurance, then you are financially obligated to fulfill it and inevitably have to pay for all the damage with your own money.
Most people cannot insure their own car, and this is the reason why some countries make purchasing a PLPD a minimum requirement that must be met by a car owner or those who already have a license to drive a car.
Wading through the years without making a claim at all, of course, makes you wonder about whether or not you need car insurance.
Nothing significant happened, no money came in anyway, so why keep paying premiums? In fact, it's good, you know, if you don't make a claim. That makes your insurance costs lower and less likely to be bothered later if you have to file a claim.
One more important thing about car insurance is that it gives motorists the legal power to use the car, especially for those who live in certain countries – who view having car insurance as important as having a driver's license.
Another feature of auto insurance is that it can help you pay off the cost of repairing the car after an accident. Of course, this depends on the insurance coverage you choose.
There are two types of auto insurance coverage that you need to know about, each of which has its own rules on what is covered and what isn't.
Comprehensive coverage
What is covered by comprehensive coverage is everything that happens not by accident. Incidents such as fire, theft, vandalism, and damage from floods or storms fall under comprehensive coverage.
Usually, comprehensive coverage is required when towing a car is required. One more thing that is important from comprehensive coverage is that it is needed when buying collision coverage.
Collision coverage
In contrast to comprehensive coverage, this coverage specifically protects your car from accidents or collisions. What is meant by this accident is starting from a collision with another motor vehicle, hitting a neighbor's post box, colliding with a street lamp, law or various other inanimate objects.
You are usually asked for a fee before picking up a repaired car. Collision coverage often comes into play when you are at fault in an accident or even when you have no idea who damaged your car.
Car insurance is still a 'foreign object' for most people. In fact, it has an important meaning as life insurance.
In contrast to life insurance, you can 'enjoy' car insurance as long as you are alive and both protect your life and your livelihood.
The issue of having to pay a premium even though there is no claim is not a burdensome thing. Whatever type of insurance you follow, you still have to pay the premium right?
