Accidents are the least desirable of anyone but sometimes accidents can’t be avoided. Whether it’s a mistake from you or from another person, and unfortunately the cost of car repair and medication is not cheap. Therefore, insurance is one of the reasons or a way out to lighten your cost burden. Car insurance can bear some of the fees you need to repair a car or sometimes it can cover all your car repair costs. Therefore, you are advised to have car insurance rates by age.
Why Must Have Car Insurance?
Having a vehicle does make you feel comfortable in carrying out your daily activities. Especially for those of you who more often go out of the office using your personal vehicle. Safety of the vehicle and you must have to be taken into account. It is still in our mind that there are cases of terrorists and even everything that happens due to the significant weather changes that can make your vehicle damaged and even destroyed without our permission. For this reason, it is important for you to protect your vehicle with insurance. Ordinary insurance is already exists when you take the vehicle if you pay it by credit card. In general, as long as you pay back, the insurance keeps protecting your vehicle until it is obtained.
However, for you who have finished the installment period, do not be discouraged, there are many insurance policies that you can get for your beloved vehicle. So you exactly picked it up for your vehicle. Do not let the insurance you take actually incriminating you with insurance premiums. On the other hand, the benefits or protection gained for your vehicle are also unbalanced. So, between payments with what gets later will have to be in line or even that you receive later than what you imagine.
Understanding Car Insurance
The protected risks can be in the form of accidents, natural disasters, fires, damage or riots. In the selection of motor vehicle insurance, the things that need to be considered is the protection services provided and the price of auto insurance premiums in the insurance policy agreement. Similar to other insurance products, car insurance requires you to pay a premium in return for a policy that guarantees that protection.
How Car Insurance Works
Car insurance provides protection to the policyholder’s car based on the preferred protection service options. And instead, the policyholder is obliged to pay the insurance premium. Car insurance premiums or other motor vehicles are billed once a year. The size of the premium price to be paid will depend on several factors. Among others are:
- Type of car insurance selected.
This type of car insurance consists of All risk or comprehensive and Total Loss Only (TLO). Each type of protection has a different coverage and premium protection type of all risk will usually be more expensive than the TLO or Total loss only.
- Additional protection or protection extension
For in case of additional protection, if you want to add protection of course premium price will be higher. But in the long term, it is good for you.
- Location of vehicle operating
Each region will have different categories of premium calculations. Generally the premium rate will vary in amount not far away.
- Age of vehicle
The older the age of the vehicle is usually the greater the premium price that needs to be paid. The reason why the insurer can bear the vehicle up to a certain age because the older a vehicle the higher the risk of a vehicle having problems. Therefore, average car insurance rates by age is more expensive than the regular car insurance.
- Value of protection / coverage
The value of protection will depend on the car you own and your desire to insure the car. The sum insured is calculated based on the market price of the car. The more expensive the price of the car the higher the value of protection so the higher the premium price to be paid. However, you can lower the value of protection as you wish, only if something happens to your car then the insurance company will replace it in accordance with the nominal value of protection. Keep in mind sometimes car accessories as well as Cubic Centimetres or CC will be a factor affecting the calculation of premiums.
Generally, the cost of All Risk type insurance is more expensive than Total Loss Only or TLO because of the difference of protection obtained. If you buy all risk insurance and your car is stolen or heavily damaged, then you will still get compensation but if you buy Total Loss Only type insurance and your car has a scratch or dent, then there is no compensation at all. Therefore, we recommend the All Risk type of insurance. Please note, the premium for used car insurance is generally higher than the new car insurance.
– Age above 17 years. Because you should have the ID first to get the license
– You should have driver’s license and vehicle registration
Documents to be prepared:
– Photocopy of ID card, driver’s license, and vehicle registration
– Original photo of the vehicle
The size of the premium is determined by 3 factors, which are: the type of guarantee (All Risk or Total Loss Only), the type of vehicle, and the price of the vehicle. Generally, the more expensive your car, the higher the insurance premium you should pay every. But you do not need to worry because insurance premiums for cars and other motor vehicles are paid only once per year. Premium is a sum of money to be paid as a liability from the insured for his participation in insurance.
Remember, you do not want to worry all the time, right? And you don’t want to feel sorry in the future just because you do not get the insurance for your precious car. So without further ado, get the best insurance premium for your car right now, both used cars and new cars!