What is covered by car insurance, along with examples of cases

Hello, Diringkas.com friends! This time I want to share about car insurance. What is covered by car insurance? Maybe many of you are still confused or hesitant to insure your favorite vehicle. In fact, car insurance is important, you know, because it can protect us from various risks that might occur on the road.

Insurance Type

There are two types of car insurance, namely total loss only insurance (TLO) and all risk insurance. TLO insurance only covers losses if our car is badly damaged or lost due to theft. Meanwhile, all risk insurance covers both light and heavy losses, including accidents, collisions, fires, floods, or criminal acts.However, please note that not everything that happens to our cars is covered by insurance. There are several things that are usually excluded by car insurance, such as:
    • Damage due to driver negligence, for example drunk driving or not having a license.
    • Damage due to war, riot, terrorism, sabotage, or natural disaster which is not included in the policy.
    • Damage due to car modifications without the knowledge or approval of the insurer.
    • Damage caused by using a car that is not in accordance with its purpose or capacity, for example carrying excessive goods or violating traffic rules.

Sample case

For more details, let’s look at some examples of cases that can happen to our cars and how car insurance handles these cases.Example 1 : Our car was hit by another motorist who was speeding and going against the flow. As a result, our car received serious damage to the front and rear. If we have all risk insurance, then we can submit a claim to the insurance company to cover the cost of repairing our car. If we have TLO insurance, then we cannot get a claim because the damage to our car does not reach 75% of the market price.Example 2 : Our car caught fire due to an electric short circuit while it was parked at home. As a result, our car is totally damaged and can no longer be used. If we have all risk or TLO insurance, then we can submit a claim to the insurance company to cover the cost of replacing our car with a value according to the market price.Example 3 : Our car was stolen by unknown persons while it was parked in a public place. As a result, our car is lost and its whereabouts are unknown. If we have all risk or TLO insurance, then we can submit a claim to the insurance company to cover the cost of replacing our car with a value according to the market price.Example 4 : Our car was damaged because it was hit by a flood while crossing the highway. As a result, our car’s engine and electricity are damaged and cannot be started again. If we have all risk insurance, then we can submit a claim to the insurance company to cover the cost of repairing our car. If we have TLO insurance, then we cannot get a claim because the damage to our car does not reach 75% of the market price.Example 5 : Our car was damaged because it was hit by a stone thrown by an unknown person while crossing the highway. As a result, the windshields and mirrors of our cars break and crack. If we have all risk insurance, then we can submit a claim to the insurance company to cover the cost of repairing our car. If we have TLO insurance, then we cannot get a claim because the damage to our car does not reach 75% of the market price.

Suggestions For Choosing The Right Car Insurance

After knowing what is covered and not covered by car insurance, of course you want to know how to choose the right car insurance for you. Here are some suggestions that you can consider before deciding to insure your car.
    • Adjust the type of insurance to your needs and budget. If you feel confident enough in your driving abilities and rarely experience problems on the road, maybe you can choose TLO insurance which is cheaper. However, if you are worried about the risks that might occur on the road and want to get maximum protection for your car, maybe you can choose more expensive all risk insurance.
    • Compare premiums and benefits from various insurance providers. Don’t get hung up on just one insurance provider, but look for as much information as possible about the premiums and benefits offered by various insurance providers. You can compare online or offline through insurance agents. Choose an insurance provider that provides premiums that suit your budget and benefits that suit your needs.
    • Pay attention to the reputation and service of the insurance provider. Apart from premiums and benefits, another important thing to consider is the reputation and service of the insurance provider. You can find out about their track record and testimonials from their previous customers. You can also check whether they have an easy and fast claim service or not. Choose an insurance provider that has a good reputation and satisfactory service.
So, before choosing car insurance, we must read and understand well what is covered and not covered by the insurance. Don’t let us feel disadvantaged because we don’t get a claim that meets our expectations.Thus my article this time about car insurance. Hopefully this is useful and can help those of you who are looking for information about car insurance. See you in the next article!
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