10 Things You Need To Know About Car Insurance

Car insurance is a must for every motorized vehicle owner to protect their vehicle from various risks. There are many types of auto insurance available in the market, however, not all auto insurance is the same. Therefore, you must understand a number of things you need to know about car insurance before buying it.

1. What is Car Insurance?

Car insurance is a form of financial protection provided by an insurance company against damage or loss of a motorized vehicle due to an accident, theft or natural disaster. In exchanging premiums, the insurance company will pay compensation or vehicle repair costs in accordance with the terms and conditions agreed in the insurance policy. Depending on the type of auto insurance chosen, it can cover both the vehicle and the driver, passengers, and even other people involved in an accident. Car insurance can also provide emergency assistance, such as towing services, using a replacement car, or road assistance. Car insurance is very important for every motorized vehicle owner, because the risk of damage or loss of the vehicle is very high. In addition, car insurance is also a mandatory requirement in traffic laws in several countries, including Indonesia.

2. Types of Car Insurance

There are several types of car insurance that you can choose according to your individual needs and budget. Here are some types of car insurance that are commonly offered by insurance companies:

1. 1. TLO Car Insurance (Total Loss Only)

TLO car insurance protects vehicles from damage that causes repair costs to exceed 75% of the vehicle value or is in a condition that cannot be repaired (total loss). However, this insurance does not protect the vehicle from damage that is less than 75% of the vehicle’s value.

2. 2. Comprehensive Car Insurance

Comprehensive car insurance protects vehicles from all types of damage, including damage from accidents, theft and natural disasters. In addition, this insurance can also protect drivers, passengers and third parties involved in accidents.

3. 3. All Risk Car Insurance

All risk car insurance covers all types of damage, including accidents, theft and natural disasters. This insurance is usually more expensive than other types of car insurance because it provides more comprehensive protection.

4. 4. Passenger Accident Insurance

Passenger accident insurance is additional insurance that protects vehicle passengers from injury or death due to accidents. This insurance can be added to a comprehensive or all risk car insurance policy.

5. 5. Third Party Insurance

Third party insurance only protects third parties involved in accidents, such as other motorists or pedestrians. This insurance does not protect your own vehicle from damage or loss. The selection of the type of car insurance must be adjusted to the needs and budget of each. Make sure to choose the right type of insurance for your vehicle so that it can provide optimal protection in various situations.

3. Insurance premiums

Insurance premiums are costs that must be paid by the vehicle owner to the insurance company to obtain protection from damage or loss of the vehicle. The amount of premium that must be paid depends on the type of car insurance chosen, the value of the vehicle, the age of the vehicle, the area of operation, and a number of other factors. Generally, the more comprehensive the protection provided by insurance, the higher the premium that must be paid. For example, comprehensive or all risk insurance premiums are usually higher than TLO or third party insurance premiums. In addition, premiums can also be affected by vehicle conditions, such as vehicle age, vehicle type, and operating area. For example, premiums for older vehicles or vehicles operating in areas deemed riskier are usually higher. Insurance premiums can be paid annually, semiannually, or monthly, depending on the insurance company’s policy. Vehicle owners can choose the payment method that best suits their individual needs and budget. It is important to always pay premiums on time to ensure vehicle protection remains in effect. Don’t forget to also read and understand the terms and conditions in the insurance policy before buying car insurance to avoid inconvenience in the future.

4. Level of Customer Satisfaction

As a consumer, it is important to choose an insurance company that can provide good and satisfying service. One way to find out the level of customer satisfaction is to seek information through various sources, such as websites or online discussion forums. On the insurance company’s official website, there are usually testimonials or reviews from customers who have used the company’s services. Apart from that, you can also ask for recommendations from friends or family who already have experience using car insurance. This can help you choose a trusted insurance company and can provide satisfying service. When buying car insurance, be sure to read and understand the terms and conditions in the insurance policy. Don’t hesitate to ask the insurance company if something is unclear or you don’t understand. By choosing the right insurance company and understanding the terms and conditions that apply, you can feel safer and calmer when using your vehicle.

5. Insurance Companies

Insurance companies are institutions that provide insurance services to protect certain risks that can be experienced by individuals or companies. Insurance companies receive premium payments from their customers and issue compensation in the event of a risk guaranteed in the insurance policy. Insurance companies have a goal to help people protect their property and lives from unwanted risks. There are several types of insurance that are commonly offered by insurance companies, such as vehicle insurance, home insurance, health insurance, and others. In addition, insurance companies also provide economic benefits to society by collecting premiums from their customers and investing them in various types of financial instruments. This investment can provide benefits for insurance companies and will ultimately affect the premiums that must be paid by customers. Insurance companies must comply with applicable laws and regulations to maintain customer safety and trust. They must also have partners or a network that is wide enough to provide optimal and satisfying service to their customers. Before choosing an insurance company, it is important to compare the products and services offered by various insurance companies. Choose an insurance company that is trusted and can provide the best service to ensure optimal protection for your property and life.

6. Claim Policy

Claims policies are rules applied by car insurance companies to regulate the process of filing claims by customers. The claim process must be in accordance with the terms agreed in the insurance policy. Usually, the car insurance company will set a time limit for submitting a claim after the risk that is guaranteed in the insurance policy occurs. The customer must immediately report the incident and collect the necessary documents for filing a claim, such as a police letter, a statement from the police, and others. After the claim is received, the insurance company will evaluate the incident to determine the eligibility of the claim and the amount of compensation that will be given. If the claim is approved, the insurance company will pay compensation according to the terms agreed in the insurance policy. However, sometimes there are differences of opinion between customers and insurance companies regarding the feasibility of claims and the amount of compensation that must be given. If this happens, the customer can file a complaint and fight for his rights through a court or competent authority. It is important for customers to understand the claims policy applied by the car insurance company before deciding to buy an insurance policy. Choose an insurance company that has a clear and fair claim policy and provides the best service for its customers.

7. Additional Insurance

Additional insurance or commonly referred to as a rider is an additional option that can be added to the main car insurance policy. This rider provides additional protection for customers in certain matters that are not guaranteed by the main car insurance policy. An example is the personal accident rider, which provides additional protection if the driver or passenger is involved in an accident while driving. There is also a tire insurance rider, which provides protection if the car tire punctures or bursts while driving. The choice of additional riders may vary depending on the insurance company and car insurance products offered. Usually, this additional rider has an additional fee that must be paid by the customer. Even though it has an additional cost, choosing an additional insurance rider can be a wise choice to increase car protection and driver and passenger safety. However, customers must ensure that the additional riders selected are in accordance with their needs and can provide real benefits in certain situations.

8. Policy Validity Period

The validity period of the policy on auto insurance is the period of time during which the insurance policy is valid and provides coverage for the insured vehicle and driver. The validity period of the policy is usually specified in the insurance contract and can vary depending on the insurance product and insurance company that issues it. The validity period of a car insurance policy can vary from one year to several years. After the policy validity period expires, the customer must renew the insurance policy if he wants to continue to obtain insurance protection for his vehicle. During the validity period of the policy, the customer must pay the insurance premium in accordance with the established agreement. If a claim occurs during the validity period of the policy, the customer can submit a claim to get compensation from the insurance company. Therefore, it is important for customers to understand the validity period of the policy and other provisions in the insurance contract to ensure that the vehicle and driver are properly protected during the policy validity period. Don’t forget to renew the car insurance policy in a timely manner so that the protection continues.

9. Claim Procedure

The claim procedure for car insurance is a process carried out by customers to apply for compensation for losses that occur in their vehicles. This claim procedure involves several steps that must be carried out by the customer and the insurance company. The following is an explanation of the claim procedure for car insurance:

1. • Reporting Losses The customer must immediately report any losses that occur to his vehicle to the insurance company. Reporting can be done in person to the insurance company’s office or by phone or email. At this stage, the customer must also provide information about the identity of the vehicle and details of the loss that has occurred.

• • Loss Check After receiving the report, the insurance company will conduct an examination of the loss reported by the customer. This examination may involve an independent appraiser or the insurance company itself.

• • Submission of Claims After the loss is confirmed, the customer can submit a claim to the insurance company. Submitting a claim usually includes filling out a claim form, collecting supporting documents, and submitting all required documents to the insurance company.

• • Settlement of Claims After receiving a claim submission, the insurance company will evaluate the claim and determine the amount of compensation to be given to the customer. If the customer agrees to the amount of compensation offered, the insurance company will settle the claim and provide compensation to the customer. However, if the customer does not agree with the amount of compensation offered, then the customer can negotiate or appeal.

In carrying out the claim procedure, the customer must understand the terms and conditions contained in the car insurance policy he has. It is also important to make claims according to the specified procedures so that the claim process can run smoothly and get the expected results.

10. Discounts

Discounts are discounts given by insurance companies to customers as a form of incentive or award. Discounts on car insurance can be given in various forms, such as discounts for new customers, discounts for paying premiums in cash, discounts for customers who have never made a claim, or discounts for customers who have installed a security system on their vehicles. Discounts on car insurance have several benefits for customers, including:

1. • Save on premium costs With discounts, customers can save on premium costs that must be paid every month or every year. This is certainly very beneficial for customers who want to minimize expenses.

• • Increasing customer satisfaction Discounts can also be a form of appreciation and appreciation for customers who have become loyal customers. This can increase customer satisfaction and strengthen the relationship between the customer and the insurance company.

• • Encouraging customers to comply with insurance company policies Discounts given to customers who have never made a claim or have installed a security system on their vehicle can encourage customers to comply with insurance company policies. This is certainly very important to minimize risk and maintain the stability of the insurance company’s business.

However, customers must understand that not all discounts can be given unconditionally. Some discounts may only be valid for a certain period of time or only apply to certain types of policies. Therefore, before choosing car insurance, customers need to pay close attention to the terms and conditions contained in the insurance policy to be selected so that they can benefit from the discounts offered.

Bonus Tips in choosing Car Insurance

Here are some additional tips that can help in choosing the right car insurance:

1. • Comparing premiums Before choosing car insurance, it is necessary to compare premiums from several insurance companies first. Make sure to choose a premium that fits your budget but still provides good protection.

• • Paying attention to coverage Be sure to understand the coverage offered by insurance companies. Choose an insurance company that provides complete coverage and suits your needs.

• • Checking the validity period of the policy Be sure to check the validity period of the car insurance policy that you will choose. Make sure the policy validity period suits your needs and pay attention to whether the insurance company provides a policy extension option.

1. • Paying attention to claim policies Be sure to pay attention to the claim policies set by the insurance company. Choose an insurance company that has a clear and easy to understand claim procedure.

• • Choosing a trusted insurance company Make sure to choose an insurance company that is trusted and has a good reputation. You can do online research and read reviews from the insurance company’s customers before choosing it.

• • Paying attention to additional services Some car insurance companies offer additional services such as towing services, replacement cars, and so on. Be sure to pay attention to the additional services offered and choose an insurance company that provides additional services that suit your needs.

By paying attention to the tips above, it is hoped that you can choose the right car insurance that suits your needs and budget.

FAQs

• • What should I do if an accident occurs with my vehicle? Answer: Immediately report the accident to your car insurance company and follow the specified claim procedure.

• • What is All Risk car insurance? Answer: All Risk auto insurance covers all types of damages, including accidents, theft and natural disasters.

• • What should I do if the car insurance premium is too expensive? Answer: Find another insurance company that offers more affordable premiums or try negotiating with your current insurance company.

• • What is passenger accident insurance? Answer: Passenger accident insurance is additional insurance that protects the passengers of your vehicle from injury or death due to an accident.

• • How long is the validity period of the policy from car insurance? Answer: Most auto insurance companies offer a one-year policy term.

Conclusion

In choosing car insurance, there are several things that need to be considered such as the type of insurance, premiums, protection coverage, claims policy, policy validity period, discounts, additional insurance, and customer satisfaction. Apart from that, it is also necessary to pay attention to additional tips such as comparing premiums, choosing a trusted insurance company, and paying attention to the additional services offered. It is important to choose the right car insurance that suits your needs and budget. This can provide good protection and ensure the safety of your car when driving on the highway. Before choosing car insurance, be sure to pay attention to all the necessary aspects and choose an insurance company that is trusted and provides good service to its customers. In choosing car insurance, comfort, safety and customer satisfaction are very important. Make sure to choose a car insurance company that provides complete protection and provides the best service for customer satisfaction.