KNOW THE TYPE OF VEHICLE INSURANCE FOR NEW CARS

 Buying a new vehicle is certainly a dream for many people and is usually still very well taken care of by the owner. For this reason, new vehicle owners usually use vehicle insurance for their cars. But before you use vehicle insurance, it's a good idea to know the types of vehicle insurance for new cars available on the market.

This is of course so that you can choose the right type of insurance according to your needs. For example, if you live in a flood-prone area, it must be ensured that the insurance you use has a claim for flooding. In addition, car insurance is not only useful for insurance owners and car drivers. There is also a coverage option that can replace other driver's car damage due to your negligence, so you don't have to panic and worry because the damage will be compensated by the insurance company.

In general, there are two types of insurance products that new car owners can choose from; All-risk or comprehensive insurance and TLO.

All-Risk or Comprehensive Insurance

All Risk in the true sense does mean 'all risk'. This insurance is also called comprehensive or whole. This means that the insurance will pay claims for any kind of damage due to the risks covered by the policy. Starting from minor damage, heavy damage, to loss. If the car has a slight scratch, the insurance will pay the insurance claim.

Even though the name is all risk, there are still some risks that are not covered by All Risk car insurance. For that, you may decide to expand your car insurance coverage. The extension of this coverage covers things that may happen to the car due to

1. Floods, typhoons, storms, and water damage
2.  Riot.
3. Earthquake/Tsunami.
4. Sabotage/Terrorism.
5.  Third Party Liability (TPL).
6. Driver Accident.
7. Passenger Accident.
8. Legal Liability to Passengers (TJHP).
9.  Official Workshop.

Asuransi Total Lost Only (TLO)

Meanwhile, Total Loss Only (TLO) insurance only covers the risk of theft and damage if the repair costs are estimated to be equal to or exceed 75 percent of the vehicle price immediately before the loss. Replacement is carried out if the repair cost reaches a minimum of 75 percent of the vehicle price which is calculated based on the market price/year of manufacture. Not based on the amount of damage that reaches 75 percent of the physical car.

If the car is only dented or scuffed and then submits a claim, it will not be replaced. TLO insurance is usually chosen because the premium price is relatively cheaper than all risk insurance.

Basically, insurance frees you from the extra costs that must be incurred in the event of damage to the car. Imagine if you don't have insurance, when the car is damaged, you have to spend personal funds to repair it.

Ownership of new or used cars on credit usually automatically gets vehicle insurance that has been included in the installment program which is paid every month. But don't forget to make sure again when you buy an insurance product is to study the issued policy so you don't misinterpret it. Because the policy is a document that contains information about the vehicle, the value of the insured vehicle and clauses. So that there are no problems when submitting a claim.