Available Car Insurance to Minimize the Risk of Damage and Financial Loss

 

 Available Car Insurance to Minimize the Risk of Damage and Financial Loss -  Have a cool and expensive car, but no insurance? Are you ready to lose? Car insurance, highly recommended for every motor vehicle owner, to minimize losses due to accidents.

The reason is, the various risks of car accidents, it is never known when it comes. So make sure your car, has been safe from all sorts of unexpected risks, because it is already listed the best car insurance, which you can buy at CekAja.com.

What is car insurance?

Car insurance is an insurance service in the form of vehicle protection, both cars and two-wheeled vehicles, or motorcycles. Where, various risks that occur in your car due to accidents, the losses can be transferred to insurance companies or guarantor agencies. 

So, in addition to being careful, you can also minimize car accident losses by buying a car insurance policy. Car insurance will work to anticipate risk, by transferring it to car insurance companies.

History of Car Insurance

Before offering protection services for cars and motorcycles, motor vehicle insurance in the past, precisely in London, only provides insurance facilities for the engine only. Usually, the insured machine is a train engine, which is in 1896.

Furthermore, in 1898, motor vehicle insurance was present, and was known as the Law Accident Insurance Society. After World War I, in 1914, the number of road accidents increased. 

Thus, it gives rise to a new need, to bear the risk of motor vehicle losses. In 1974, the Road Tranfic Act was enacted, which was in line with a decision by the European Economic Community, which established all motor vehicle insurance policies.

It also raises public awareness, on the importance of having insurance, especially car insurance to minimize losses.

Still in Europe, the British also established the insurance The Red Cross, which was renamed The White Cross. Motor vehicle insurance has a guarantee in the form of All Risk, which is further introduced in the Netherlands. 

The term All Risk also became familiar in Indonesia, because the Dutch also participated in marketing the insurance, during the colonial period. However, in Indonesia now the term All Risk is replaced with the term 'comprehensive' or combined coverage. Even so, the term All Risk is still often used by insurance companies.

Types of Car Insurance

Speaking of All Risk car insurance guarantees, in Indonesia alone there are two types of car insurance, namely mobi All Risk insurance and TLO (Total Loss Only).

• All Risk/Comprehensive

The first is Al Risk or comprehensive car insurance, where this insurance protects the car more broadly from various damages. Starting from minor damage, such as fine scratches, dents, and other minor damage, to major damage such as collisions, which result in the car body changing shape. 

Not only damage, this type of car insurance also protects the car from car theft. Thus, any kind of damage loss, can be borne as long as it is in accordance with what is written in the policy.

Total Loss Only

While TLO car insurance (Total Loss Only) is an insurance service in the form of protection on cars, from the risk of loss.

In addition, TLO car insurance also guarantees risk, due to theft and damage if the cost of repairs is estimated to be equal to, or exceeds 75 percent of the price of the vehicle, shortly before the loss occurs.

Can All Risk Car Insurance Protect Your Car From All Risks?

When viewed from the explanation, All Risk car insurance can provide comprehensive protection from all risks of damage and loss. However, it turns out that there are some risks that can not be guaranteed by All Risk car insurance. 

However, you can decide to expand your car insurance coverage. Where, this expansion of coverage includes things that may happen to the car caused:

1. Natural disasters such as floods, hurricanes, pickaxe, storms, and water damage.

2. Riots.

3. Earthquake/Tsunami.

4. Sabotage/Terrorism.

5. Third Party Liability (TPL).

6. Driver's Accident.

7. Passenger Accident.

8. Legal Liability to Passengers (TJHP).

9. Official Workshop.

Indonesia itself is a country that has a great possibility, to experience things like the above. Call it like a natural disaster flood, which every year must occur in some areas to the capital.

So, for people who want to get guarantees from some of the risks above, can expand the guarantee.

For the amount of expansion rate this protection varies.

For those who are curious, you can find out in full, related to how much the latest protection expansion rate, you can see it in the OJK Circular Letter 

Advantages of Having Car Insurance

Just like humans, inanimate objects also need protection. However, not only protection, the owner will also feel safer, because of the risks, can also cause financial problems.

Car insurance is present and growing, even providing the need for special insurance that is much more profitable. Here are the benefits of having car insurance in general:

More efficient, as it reduces risk uncertainty

Helps reduce financial burden due to losses

Can give peace when driving, either yourself or others

- As an investment instrument, and more disciplined in saving

- Easier to manage finances

Benefits of Car Insurance Before You Buy It

Already have a car, but haven't insured it yet? This may be a good time for you to immediately look for the best car insurance. Why rush to have car insurance? What are the benefits of car insurance?

For some people have vehicle / car insurance is less important because they can drive the vehicle carefully so as to avoid accidents. Not to mention, taking care of the way car insurance claims are difficult and the procedure is convoluted so that the funds needed are liquid. But that assumption is not entirely true because filing car insurance claims can be done quickly and easily as long as all requirements are met. The benefits of car insurance are not only limited to indemnity tools in the event of an accident, but also as a maintenance investment.

We never know about things that might happen in the future. For that, it is also important for you to have protection from various risks, in this case about the car, such as the risk of damage to loss. Well, you certainly do not want your car to have fatefully with no protection, even though you have difficulty saving to take installments to have it?

You must know the various benefits of car insurance to protect your favorite vehicle, before choosing the best car insurance products such as Raksa car insurance, BCA, and others. Check out the explanation below.

Benefits of Car Insurance Based on Product Type

In general, car insurance consists of total loss only (TLO) car insurance and all risk (combined/ comprehensive) car insurance. The benefits of car insurance from the types of products on the market are as follows:

1. Benefits of total loss only car insurance (total loss / car TLO insurance)

As the name implies, total loss only (TLO) car insurance offers car insurance benefits in the form of claims that can only be made in the event of a total loss. The total loss in question is damage that occurs above 75% or loss due to theft or deprivation. The amount of damage of 75% is used as a benchmark because the car will certainly not be usable again.

In addition to guaranteed protection, the cost of car TLO insurance premiums is also cheaper than all-risk car insurance. You can also save financial expenses with costs that are not too expensive. If you have a used car under the age of 10 years, it's a good idea to take TLO car insurance rather than all risk car insurance. 

2. Benefits of all risk car insurance (combined / comprehensive)

All risk car insurance or also referred to as comprehensive or combined car insurance is favored by various circles, ranging from millennials to adults. The reason is, the benefits of all risk car insurance provide comprehensive coverage for the risk of small and large damage. The scope of damage risk can also be added flexibly, such as for the risk of natural disasters and riots.

With the benefits of all risk car insurance offered thoroughly, the cost of premiums that you have to pay every year is higher when compared to car TLO insurance. Although the insurance coverage offered is more complete, you need to remember that all risk insurance protection is only valid in one year. Therefore, all risk car insurance is more suitable for new cars, such as cars that were newly produced or purchased in the same year.