How much do we need to have car insurance?
In Indonesia, having car insurance is not a must. For this reason, almost all drivers are reluctant to use car insurance to protect them. However, there are many other reasons to have car insurance, namely:
Pay now for later – By investing the money that was set aside early on in car insurance, we can avoid incurring substantial costs in the event of a collision, total damage, bodily injury, and so on. In short, car insurance can help us to pay the necessary expenses due to an accident.
Protect ourselves and others – Whoever is in the car, both passenger and driver when an accident occurs, this insurance will help us to pay for medical treatment due to accidents and damage to the car .
Saving time – By choosing the appropriate coverage, the impact of a car accident that is very time consuming is like negotiating costs with other drivers causing damage to our car is no longer necessary. If the insurance policy is used properly, the car will usually be taken care of and repaired. In addition, this insurance also pays for repairs for the cars of other drivers involved. These costs will be processed immediately after we make a car insurance claim.
Peace of mind – When we already have car insurance, we no longer need to worry when we want to drive and an accident occurs if the person involved does not have insurance to pay for repairs for car damage. Complete insurance coverage health – It is said that because usually not all medical expenses can be covered by health insurance, car insurance can help us to cover the remaining medical costs. A car insurance policy can also cover the costs of medical and dental care caused by an accident.
If you look further, isn’t that enough to explain why car is important isn’t it?
Will the sum insured be covered in full or only in the event of an accident?
Before deciding to buy car insurance, it seems we need to reconsider how much we can spend to pay insurance premiums. Then think again about the cost of coverage provided is it in accordance with what is needed?
Car insurance that will cover the damage caused by a collision is also known as a collision.
This insurance will pay for it regardless of who caused the accident. For example, if someone hits the rear bumper of our car, the insurance will pay for the damage only to the part that is damaged, namely the rear bumper. Meanwhile, if we hit another car from the front and it is damaged on the front bumper, the insurance will pay for the damage to the front bumper of the car.
All-risk insurance or also called comprehensive is insurance that guarantees all bad risks that will happen to our car. This insurance protects the car from minor damage such as scuffs or scratches on the car body to very serious damage such as damage due to natural disasters and vandalism and loss of the car due to theft. An example of a case is for example our car was hit by a tree that fell due to strong winds so that the roof of the car was damaged, this insurance will pay for the damage to the roof.
When a car is loaned, is car insurance still required?
Of course, car insurance is indispensable when a car is loaned out. The car insurance policy will follow the car that is covered in the sense that whoever the car is driven, the insurance will guarantee protection for the car. Here are some examples of how car insurance can be applied to other drivers who use our cars:
A friend needs to do something and we lend him our car. Unwanted events occur in the middle of the road. He hit another car. Collision car insurance will be finance the damage to our car by filing an accident claim with the insurance company. Chances are the premium will increase because we file an accident claim.
When the accident happened, it was not only our car that needed repair but also the responsibility to the car and the driver who was in the car. Our car insurance can pay for the damage to the car and the treatment of bodily injuries that occur as a result of a collision. Insurance of friends who drive our car can also play a role to help cover excess damage that cannot be covered by our insurance policy
In this case, if our friend does not have car insurance, then most likely all liability for the damage will be given to us as the car owner. However, this can be the other way around if it was our friend who was hit and the other driver at fault had to pay compensation.
In such cases it can be concluded that when making an agreement with an insurance company, can remove anyone from the coverage of our car insurance policy. In a sense, these people cannot be covered by our insurance if they drive a car that we have. This is also true if we want to protect people who drive our car regularly – for example a spouse or personal driver – then we need to include it in our car insurance policy agreement.
Is car insurance important for children?
Putting our kids on an insurance policy for protection when they go to college or even if they don’t bring a car is very important. They may also use our car when the holidays have arrived so we as parents want to make sure that their safety is guaranteed when they drive our car or any other car. This also applies when they are at school and asked by a friend to drive an uninsured car. In the event of an accident, of course, this insurance can the cost of their protection and that was guaranteed regardless of whose car they were driving.
Is the premium cost affected by the car to be insured?
Inevitably, the car is one of the main factors that affect the range of premium costs that will be issued. The car can determine the high and low premium costs. Here are the things that are assessed from our car that affect the amount of premium costs:
Age – The age of the car can be seen from the year of production. Usually a car that is classified as old will issue a cheaper price than a new car which has a higher market value and is more expensive to repair if there is damage. Even so, a car that is too old can make the costs incurred more expensive due to the scarcity of spare parts and safety features in the car which are quite risky.
Makes and Models – Certain Brands and Models will be more expensive to insure such as luxury vehicles, exotic sports cars the market value is higher so the repair costs will definitely be more expensive. For example, to repair a damaged sedan for 200 million rupiah, where spare parts are easy to find, it will be more affordable than repairing a 1 billion rupiah car that needs to be repaired at a special workshop. Usually only certified auto repair shops are allowed to carry out car repairs. Examples of cheap cars to insure are SUV and hatchback brands.
Theft Risk – again insurance will discuss risks like this, of course we can see if a car is very desirable or not. There is even a list that includes information on what types of car brands are often stolen and if our car is on the list, the cost of insurance premiums will certainly be higher.
Other factors such as the presence of anti-theft devices in our cars and hybrid or electric cars often get a discount on the cost of car insurance premiums that will be paid. Liability insurance (umbrella insurance) is needed to protect the family?
Liability insurance known as Umbrella Insurance is indispensable to help finance our family’s coverage. This insurance provides additional coverage covering the cost of medical bills for injuries suffered by the driver that are not covered by the main insurance.
Case in point: while driving we hit another car and cause an accident, the driver who was hit asked for compensation of 10 billion while the insurance he owned was only able to cover as much as 7 billion, Umbrella Insurance will help us to cover the rest – to a certain extent that has been agreed upon – so that the responsibilities are completed.
Insurance that covers home or vehicle coverage can be started if the premium payment for the main insurance has reached the specified limit. This insurance can be claimed if a case like this occurs, otherwise this insurance is not enough and possibly increase expenses. But of course, we can use this insurance at an affordable cost to get extra protection. To understand more, we need to read more about this insurance.
Conclusion
In conclusion, the decision to buy car insurance is very important in order to save time and money. Of course, if we buy insurance products at the right company. Also pay attention to the reputation of claim services other than insurance products when buying car insurance, claim services really need to be considered to save time and avoid hassle after an accident so that the process can run well from towing vehicles affected by accidents to medical bills and car repairs.