Confused Choosing a Good Car Insurance?

Modern society in big cities almost completely uses car transportation to support their activities. The need to buy a car will also increase because the transportation infrastructure in big cities is not even more feasible, both in terms of quality and quantity of service. Even so, many people do not realize that besides buying a car there are things that can provide comfort, safety and maintain a car properly. Yes, this is car insurance. insurance credentialing and enrollment

Basically, car insurance offers a feeling of safety in driving and helps us deal with unexpected expenses. Similar to health insurance, the way car insurance works and the rules of the game do not differ much. If health insurance or life insurance protects us, car insurance protects your favorite car, friends.

Car insurance aims to protect the car from various unexpected dangers. Starting from loss, accidents, or things that trigger a loss to the car in question. Maybe friends here already know what car insurance is and why it's important, but behind all that there are types of car insurance, you know. If you choose the wrong choice, you might lose in the future. So, so that later you won't regret it, let's see what car insurance is, and what are the differences and advantages. 

All Risk (Comprehensive) and Total Loss Only (TLO) car insurance

There are two types of car insurance that you can get to protect your private vehicle. The first is All Risk car insurance and the second is TLO car insurance. Both types of insurance both aim to protect cars, but in fact there are differences in the two types of insurance. What are the differences? Let us discuss in depth. 

All Risk car insurance (Comprehensive)

All Risk or comprehensive car insurance functions to protect the car as a whole from various damages. From minor damage, such as fine scratches, dents, or other minor damage, to major damage, such as a collision that causes the car's body to change shape or car theft. All of this can be covered if you choose All Risk car insurance in accordance with the terms of each policy. 

Not only that, the protection from All Risk car insurance can also be extended to provide more comprehensive protection. This expansion usually includes the possibility of the car being hit by natural disasters such as floods, earthquakes, car damage caused by riots and the risk of third party liability.

Total Loss Only (TLO) car insurance

Total Loss Only or TLO type car insurance, serves to provide protection for the car when the insured car is totally damaged. The intended total damage is a car lost due to theft, or car damage which amounts to 75% of the value of the car at the time of the accident. 

As an illustration, a car has an accident badly enough to make repairs which cost around Rp. 100 million. If estimated, the price of the car is IDR 150 million. Seeing the number of repairs needed to produce a nominal value of more than 50% of the price of the car, the car damage is categorized as above 75% so that the damage will be covered by TLO type car insurance. 

However, friends must understand that TLO car insurance does not cover cars with minor damage of less than 75%. Damage such as bumper dents or theft of the rearview mirror will not be reimbursed by the insurance company and will be borne by the car owner himself.

Can the two types of car insurance be combined?

The answer is of course you can. Both car insurance, be it All Risk (comprehensive) car insurance or Total Loss Only (TLO) car insurance, can be combined. Let's take an easy example, Friends are buying a used car and are using the credit system for payment. When you buy the used car, you prefer All Risk car insurance for the first 3 years and then use Total Loss Only insurance, it is very permissible. Vice versa. However, you must first make sure which type of car insurance is needed so that later you don't lose and make you disappointed. 

Which is more profitable? 

The difference between All Risk car insurance and TLO car insurance is the premium fee that must be paid. All Risk car insurance has a higher premium cost because when viewed from its function, it can provide a more comprehensive and comprehensive protection for Sahabat's cars. In contrast to TLO car insurance, which on average has a low premium cost. 

From the comparison of the premiums that must be paid, we can conclude that Total Loss Only car insurance is more appropriate for everyday use in the city. Meanwhile, TLO car insurance will be more appropriate for Friends who have high mobility between cities that have a higher accident rate. But it all comes down to you which car insurance is suitable and feels right to protect the car. 

Even though you already know the simulation of your vehicle insurance premium calculation. Don't use this simulation as a reference for the premium price of All Risk car insurance and TLO car insurance. The simulation calculation is only a view and an estimate if you really want to apply for car insurance. So you can prepare funds early. Not only buying a car, but also preparing to buy products that can protect your car.