Car insurance is a type of insurance that protects your personal car, when an adverse risk occurs. For example, there is severe damage due to an accident or disaster, burglary and theft, to abrasions. So, do you know where a good car insurance product looks like? Therefore, let's peel slowly about car insurance in Indonesia.
Types of Car Insurance in Indonesia
Before you buy car insurance, make sure you first understand what the types of car insurance are. There are two most common types of car insurance, namely total loss only or TLO and all risk. However, depending on the insurance company, there may also be types of benefits that you can get. The amount of car insurance premiums will also vary depending on the benefits you receive. However, in general, car insurance premiums are calculated from the range of IDR 50 thousand per month. Here are the types of car insurance in Indonesia. Types of insurance in other countries may be different in terms of name, facilities, and financing
1. Total Loss Only (TLO) Car Insurance
This type of car insurance only provides benefits if there is a loss of more than 75% of the price of the car. So, for example, the price of your car is Rp. 200 million. Then you can only make a claim if the loss reaches Rp. 150 million. This one car insurance premium is quite affordable. However, of course you cannot apply for compensation if there are only scratches.
2. All Risk Car Insurance
As the name suggests, all risk bears all risks. Even small scratches will be covered. However, because the protection is quite extensive, the premium automatically is much more expensive than the total loss only. It can even reach 3 times the TLO you know!
Other Types of Combined Car Insurance
Apart from TLO and all risk, there are also several variants of other types of car insurance. Here's an example of the variant:
- Combined, where you get all risk coverage during the first year of buying a car, then the rest is in the form of TLO. Usually this kind of insurance applies when you first buy a car installment.
- Rider, where you can add certain benefits that are more specific. For example, you add premiums and benefits for the risk of flooding, riots, personal accidents, riots, or earthquakes.
- Collision, where the insurance also covers the cost of compensation for the collision caused by the driver.
- Liability, which is similar but not the same as collision. The difference is in the additional benefit of reimbursement of medical costs if the policyholder is injured in a collision.
- Personal accident, where car insurance not only covers the car but also covers the health risks of the policyholder.
Better All Risk Car Insurance or TLO?
Depends. Everyone has their own needs and capacities. Therefore, make sure you already know the difference between these two products.
your needs. Consider whether your city is densely populated? More suitable for all risks. Or maybe your car is old? TLO is more suitable because all risks can only cover up to 12 years of age.
budget. Pay the premium continuously every year, so match it with your budget. If you don't have much, then you can at least have a TLO first. But if qualified, you can buy all risk.