Definition, types and benefits of car insurance
Everyone should understand the definition of car insurance. The reason is, motorized vehicles are property that almost everyone owns. In fact, every household has at least one motorized vehicle.
Motorized vehicles can make it easier for people to get around. It's just that motorized vehicles can be damaged by many things at any given time. If there is damage to the vehicle, the maintenance costs are of course quite high. With car insurance, maintenance costs are borne by the insurance company.
1. Types of auto insurance coverage
There are several types of insurance in car insurance. Here's the full explanation.
- Connect
This policy covers partial or total losses or total losses. These risks include accidental damage, theft, fire, ferry trips and transportation to repair shops.
- Total Loss (TLO)
This policy offers a minimum repair fee guarantee of 75% of the vehicle price for vehicles that are lost and not found within 60 days. Therefore, customers can apply for this insurance only if the vehicle damage is very serious. The insurance premium offered is certainly cheaper than combined insurance.
- Extended warranty
You can achieve this risk coverage if you are willing to pay an additional premium. This additional risk coverage is useful for covering driver and passenger accidents, third party legalliability, natural disasters, riots and terrorism.
- Personal insurance
The meaning of this car insurance is standard Indonesian car insurance which is only for yourself. However, it can also provide compensation for drivers and passengers.
Each vehicle insurance has its own advantages and disadvantages. Therefore, before signing, pay attention to the needs and types of insurance. If you want maximum protection, you can choose combined insurance, which of course has a higher premium compared to the others.
2. Purpose of car insurance
- Car insurance benefits
Taking out auto insurance gives you the following benefits:
- Peace of mind because your motor vehicle is protected. Set aside money for repairs/parts in the event of a breakdown.
- Types of car insurance
In addition to understanding the benefits available, you also need to know what car insurance is. The types of car insurance are divided into two parts:
- By type
Depending on the type of car to be insured, there are differences between the following types:
- Car insurance:
In addition to protecting and indemnifying against the risk of damage and loss of four-wheeled bicycles such as private cars, some products also offer auto liability insurance.
Coverage guarantees and compensation for two-wheeled vehicles ranging from scooters to sports motorbikes.
- Truck insurance:
Truck protection and compensation according to insurance company coverage criteria
- Car rental insurance:
Protection for damage and loss of a rental car, an example of rental car insurance is Astra Buana Car Insurance.
There are two types of car insurance, namely:
- TLO (total loss only)
Comprehensive car insurance is insurance that provides protection in the event of theft or damage in the event of loss of the vehicle and the repair value is at least 75% of the vehicle price in the event of damage. If the damage to the car is less than 75% of the total value of the vehicle before the damage occurred, insurance compensation will be refused.
- All Risk
All Risk Auto Insurance is a policy that provides comprehensive protection and financing if your vehicle suffers major or minor damage. In addition, under certain conditions, the best all-risk car insurance also offers protection if your car is lost.
The cost of an all-risk premium is higher than a TLO due to greater benefits and coverage.
How to choose the best car insurance to protect your car, you can choose from the list. No need to calculate with a car insurance calculator because the several options below also cover the cheapest car insurance options.
Other benefits of vehicle insurance:
- Covering the cost of car repairs in the event of damage.
- Provides car protection from the risk of accidents.
- Provides protection in the event of loss due to theft
- Help plan finances and reduce expenses
- Gives a sense of security and calm
- Additional service feature benefits are available
- Free from third party responsibility
- Free of extra fees
- Avoid a decrease in vehicle sales
- Later, when you have purchased car insurance, you will be asked to sign an insurance policy. The definition of a policy is a contract or agreement between a customer and an insurance company.
The Standard Motor Vehicle Insurance Policy in each company may be different, but generally the policy will contain information in the form of:
- Types of guarantees or protection as well as benefits received by policyholders
- Responsibility of the policyholder to pay the premium
- Responsibility of the insurance company to provide coverage
- Things that are exceptions or cannot be covered by insurance
- Understanding of terms related to car insurance
- Requirements for filing a claim and canceling insurance
- Supporting documents needed to submit an insurance claim
- OJK motor vehicle insurance rates
The insurance rate for cars or other motorized vehicles follows the provisions stipulated in the Financial Services Authority (OJK) circular letter Number 6/SEOJK.05/2017 Stipulation of Premiums or Contributions to the Business Line of Property Insurance and Motor Vehicle Insurance in 2017.
In general, car insurance premiums for all risk guarantees are more expensive than TLO guarantees. This is because all risks include almost all risks that could cause damage or loss.
Example of Calculation of Car Insurance
Before you buy car insurance, you need to adjust the premium you pay according to the needs, budget and age of your vehicle. To estimate how much premium you have to pay, try calculating your car insurance using Lifepal's online car insurance calculator below.
How do you register for Car Insurance?
With the rapid development of technology, car insurance claims can now be made online using an application from an insurance partner.
Car insurance examples and their meanings
However, if the company does not offer online auto insurance reimbursement facilities, the process is usually as follows:
- Immediately report the loss or damage to the insurance company.
- Include photo evidence of loss or damage to the vehicle.
- Prepare the necessary documents, including.
- Insurance, photocopy of STNK, photocopy of driver's license, compensation claim, police certificate (if necessary)
- Fill out the car insurance form
- To convey information and chronology of events
- Track the progress of application submission
Here's a list we've put together for you to choose from. You don't need to worry about calculating with a car insurance calculator, because you will also find the cheapest car insurance options in the options below.
- Jasaraharja Putera's best car insurance
What's the best car insurance? Jasaraharja Putera Insurance is the best motor vehicle insurance in 2020 and presents JP-ASTOR (Motor Vehicle Insurance) service products. JP-ASTOR may bear the risk of damage and/or loss of the vehicle itself. JP-ASTOR offers two liabilities or coverage areas, namely TLO and All Risks.
Both have premiums and car insurance prices that are relatively cheaper respectively, which is why Jasaraharja Putera's car insurance deserves to be one of the best car insurances for 2020- 2021 in Indonesia. In addition to its wide coverage in various regions of the country, this State Social Security Insurance (BUMN) is the best car insurance in Jakarta, Surabaya, Malang, Bandung and other areas.
- Sinar Mas Car Insurance
The choice of the best and cheapest car insurance recommendations then lies with Sinar Mas or Simasnet's premium product called Sinarmas Car Insurance. If you take out Simasnet insurance, you can claim compensation directly to an authorized repair shop if damage occurs to your vehicle.
This policy offers online insurance services that guarantee comprehensive insurance coverage for up to 10 years. Meanwhile, the Total Loss Only (TLO) guarantee guarantees the age of the vehicle for up to 20 years.
Terms and instructions for purchasing this insurance product require the following documents:
- KTP / SIM card
- Photocopy of STNK
- Other documents related to the type of protection selected (at the request of the insurance company)
- After agreeing on the completeness of the documents and submitting them to the insurance company, the prospective customer is required to pay for insurance to get protection according to the price of car insurance and the class of protection agreed upon in the insurance. In the past, customers could also apply for car insurance to get a thorough picture of the insurance they purchased.
- Take care of Car Insurance
Garda Oto Insurance is also the best car insurance company that offers insurance through four channels: Garda Mobile Otocare application, 24-hour access to Garda by telephone, online claims through the website, and strategic service units in various shopping centers. throughout Indonesia. As a subsidiary of Astra Buana, Asuransi Garda Oto offers car insurance services from all risk vehicle insurance to the best TLO for 2021, with additional obligations and extensions for riots and natural disasters. Apart from that, it also offers additional service functions in the form of the Garda Mobile Otocare application which makes it easy to choose a repair shop location and offers pick-up and storage services for workshop vehicles as well as repair services in all Garda 24-hour emergency workshops. service, 24-hour emergency call center, 6-month workshop warranty and online insurance that provides 1× within 24 hours.
The following are car insurance contract options from Garda Oto:
- Enter personal and vehicle data then fill in all the required documents
- Select your preferred payment method
- Activate the policy by carrying out vehicle inspections at predetermined locations
- Electronic Policy (E-Policy) will be sent via email no more than once within 24 hours after receiving the survey
- AXA car insurance
The best car insurance from AXA Auto Insurance is called Smartdrive. This insurance product provides protection against car loss and total loss if the car has an accident or is stolen by a private driver. In addition, customers also accept legal responsibility from third parties, as well as other benefits they receive depending on the product they choose.
AXA Mandiri Smartdrive motorcycle insurance product services include taxi fares, towing fees, personal injury, third party legal liability and the freedom to choose an official repair shop. All types of cars can be insured with AXA. The age limit for cars is 10 years for total products and 15 years for TLO products.
How long does it take to repair a car with insurance covered by AXA Auto Insurance? Of course, this depends on how serious the damage to your car is. With car insurance services from AXA Auto Insurance, you can rest easy knowing that hassle-free reimbursement from the insurance company can reduce repair time even further.
- Automate ACA coverage
ACA auto insurance offers two types of products. Examples of such car insurance policies are:
Waiver of Damage Due to Collision or a combination that guarantees replacement or repair costs, loss or damage to part or all of the vehicle due to fire, vandalism, falling objects, theft, robbery, collision and other traffic accidents.
ACA Otomate is specially packaged so you can choose according to your needs and ability to pay. This insurance also covers special services such as replacement cars, sudden and urgent repairs, tow trucks, ambulances, etc.
To buy ACA car insurance products, you can fill in your personal data completely on the ACA official website. The ACA auto insurance company will then contact you personally to process the purchase and apply for insurance.
- ABDA car insurance
There are still the best car insurance products that offer more protection for your car, such as ABDA Auto Insurance. This insurance also offers the main guarantee in the form of all risk coverage and total loss with only one interesting review. Buying primary insurance gives you 24/7 roadside assistance in the form of a tow truck, fuel delivery, locksmith, battery charging, and flat tire. Drivers are also offered additional protection guarantees in the form of personal accidents, as well as additional payments without compensation. This policy gives customers the flexibility to choose the official repair facility closest to their place of residence. To purchase this insurance product, you only need to enter your personal information on the ABDA Auto Insurance website. The insurer will then contact you to proceed with insurance coverage. You can also come directly to Abda's office to buy products and get more information.
- BRINS OTO
Another best car insurance product is BRINS OTO, a service provided by BRI Insurance. This car insurance protects the car from various risks, one of which is the extended warranty. BRINS OTO has two types of guarantees, namely a Combined or Comprehensive Guarantee and Total Loss or Total Loss Only (TLO).
Customers also can choose 4 packages offered by BRINS OTO:
- BRINS OTO Platinum
Provide compensation to customers in the form of:
- Total loss
- Partial loss
- Third Party Legal Liability
- Typhoons, storms, hail, floods, landslides
- Riots, riots, bad deeds
- Terrorism and sabotage
- Earthquakes, tsunamis, volcanic eruptions
- Driver accident
- Passenger accident
- BRINS OTO dear
Offer compensation to your customers in the form of:
- Total loss
- Partial loss
- Third Party Legal Liability
- BRINS OTO Silver
Provide compensation to customers in the form of:
- Total loss
- Third Party Legal Liability
- Typhoons, storms, hail, floods, landslides
- Riots, riots, bad deeds
- Terrorism and sabotage
- Earthquakes, tsunamis, volcanic eruptions
- Driver accident
- Passenger accident
- BRINS TAKES THE BRONZE
Provide compensation to customers in the form of:
- Total loss
- Third Party Legal Liability
- BCInsurance car insurance
You can also find the best motorcycle insurance at BCInsurance. This BCA car insurance guarantees damage to your motorized vehicle.
Protection includes the risk of collision, theft, fire and transit under the supervision of the Director General of Land Transportation.
In addition to car insurance benefits, you can also add extended coverage that covers risks of legal liability to third parties, disruption or riots, personal accidents of drivers and passengers, and losses due to natural disasters.
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