Before talking on the type of vehicle insurance, we should first understand what is insurance and vehicle insurance.Insurance is an agreement between two or more parties in which the insurer binds itself to the insured by accepting the insurance premium to provide reimbursement to the insured due to loss, damage or loss of expected profit or legal liability of a third party which may be subject to the insured arising from an event which is uncertain. Understanding is based on the Act no. 2 of 1992 concerning Insurance Business.
More simply, insurance is a term that refers to an action, system or business or financial protection for the soul, health, property or assets, and so on from uncertain or unexpected events. Parties that provide insurance coverage or insurers are referred to as insurance companies while the insured is the owner of the insured asset.
Then the vehicle insurance is a special type of insurance for the vehicle. Things to consider in choosing a vehicle insurance company is the financial strength of the insurance company, the services provided, as well as the costs incurred to obtain protection called the premium.
In Indonesia, it seems that many people are not too aware of the importance of car insurance. Besides because many people do not know the functions and benefits, they are also still confused about the calculation of the cost of the premium. But before we calculating how much does car insurance cost, it’s good to see the first types of vehicle insurance available. Currently, there are Total Lost Only (TLO) and All Risk or Comprehensive car insurance. Everything is intended to protect from loss, but the coverage of protection between the two insurance is different. You can freely choose the vehicle insurance by adjusting the ability and needs.
Car insurance TLO
This type of insurance TLO just give a replacement in case the vehicle suffered severe damage above 70 percent, or it cannot be repaired again. This also includes a lost vehicle stolen.If you buy a car on credit, usually this TLO insurance has become one with the first payment of the amount of premium depending on the length of the credit period. Premiums will be lower, if the tenor credit faster.
In contrast to TLO, all risk insurance has a wider coverage, both minor and major damage. Minor damage such as abrasions caused by being grazed, or cracked car lights can be protected by this insurance.Of course, the premium cost is higher than the TLO insurance. To be remembered, insurance companies are required to charge an additional premium, if the age of the vehicle is above five years with a minimum magnitude of five percent.
It is also possible to combine both types of insurance. Let’s say in the first three years you wear all risk insurance, but because the older the vehicle the more expensive the premium, in the fourth year you want to switch to insurance TLO, you can do it too.
How much does car insurance cost?
The sale price of vehicles also become a factor of insurance vehicle. The more expensive the vehicle price, the smaller the percentage of the premium. Insurance companies are also required to apply an additional premium as a minimum risk cost of 30 dollar per incident.
Expansion of Coverage on Average Car Payment Per Month
You can also ask for extension of coverage to the insurer. But, certainly not free. For example because in California, there are often demonstrations, you want to protect your car for fear of being destroyed by the masses. So, the average car insurance California is you can just pay 0.05 percent for All Risk insurance or 0 percent. You simply pay 0.05 percent for All Risk insurance or 0.35 percent for TLO insurance. But the minimum premium rate according to the regulation, the amount will depend on the insurance company selected.
Expansion of these dependents can also protect the vehicle from incidents such as sabotage, terrorism, and personal accident passengers are usually not covered by motor vehicle insurance.Well, now already know the formula and rate of insurance premiums. Now it is no longer dong mock-up story or protest at the insurance because they feel “robbed”. All already have rules of the game and are protected by law, so no one is harmed.
In order to get coverage of the car insurance for any losses suffered, you need to make a claim. Did you know that the success of a claim depends on whether the insurance policyholder is performing the procedure correctly? Here are the steps that will be passed in general:
– Be on time to report the incident that you experienced immediately to our Customer Support.
How long is the reporting deadline? Maximum 3 x 24 hours from time of incident.
What information should be submitted? When reporting to the insurance company, you need to notify your identity and policy number so you can immediately check the status.
– Request a letter from the local police
Immediately ask for a police statement about the event. In car insurance claims, you must attach this police certificate to indicate that a traffic accident or theft / loss experienced actually exists.
– Prepare photographs as evidence
It is not enough if you only use the identity of the police and the identity of the local police, also include evidence of photos of the condition of your vehicle especially if it is badly damaged. With original photos, your claim submission will be easy and quick to process. Contents claim form the insurance company requires you to fill out the claim form first before further processing.
To conclude, there are several benefits that can be obtained if using vehicle insurance:
- Providing protection against a vehicle against an uncertain or unexpected event such as loss due to theft, accidental damage or natural disaster, and so on.
- Assisting financial planning or management due to costs incurred for vehicle damage.
- Provides a sense of security for vehicle owners.
- Obtain additional services such as a 24-hour customer service telephone facility, a tow truck facility, a replacement car service when the vehicle is in repair at the workshop, and others.