You may have heard the sad news that we have recently found a lot from online news and our social media, about the fatal accident that befell an Indonesian artist due to a car accident on the toll road, this news was also accompanied by news of the victim's vehicle which was not covered by insurance. The existence of this tragedy then reminds us how important it is to insure our car gets guaranteed protection from the risks we don't want. Especially now that the number of vehicles continues to increase, the roads are increasingly congested, finally, the risk of accidents is even higher. But unfortunately, not a few people still take this insurance for granted, maybe because they don't know what car insurance is, what are the benefits, and what are the types of products.
Vehicle insurance is a type of insurance that is intended for vehicles that if an unwanted event occurs, the risk will be taken over by the insurance company.
What are the Benefits
of Insuring a Car?
1. Cover repair costs in case of damage
If your car for some reason causes damage to car parts, insurance will cover the cost of repairing the car. Generally, insurance companies work with workshops in various areas around you. This really helps you from inflating expenses due to car repairs.
2. Protect from the risk of accidents
Sometimes we as drivers or owners of the car do not really understand the condition of our car whether it is in good condition or not, the condition of the road we are passing is smooth or not, even our body condition is fit or not to drive a car, which of the above things if we Carelessness can be the cause of an accident that we certainly don't expect, therefore insurance can help you in repairing the car after an accident and helping other losses that can be covered by the insurance company.
3. Protects from the risk of loss
Some insurance products can even replace a new unit if you lose your car. But of course, it must be accompanied by strong evidence, like CCTV and other evidence, so you no longer need to worry about losing big costs due to the loss of your car.
4. Help reduce losses
The risk of accidents, damage and loss force us to spend a lot of money for repairs and recovery, these large costs are often stressful because financial plans that have been arranged in such a way become a mess. By insuring your beloved car, your financial plans will not be disrupted, and your financial condition remains stable.
5. Provide comfort and safety in driving
By insuring your car, you are no longer wary of unwanted possibilities that come. You are protected from bearing big costs, so your economy remains stable.
6. Help stabilize selling prices
Not many know that insurance can stabilize the selling price of a vehicle due to price declines every year. This is done by replacing car components that have decreased in price due to damage.
7. Providing Legal Aid
Car insurance also protects against accidents with legal assistance if a third party is involved in the accident. This insurance is very helpful in facilitating legal matters which are often troublesome and stressful for people who do not understand the law, so this insurance is one way out that can be offered.
8. Help Free from Third Party Dependents
Still related to the previous type of insurance, this type of insurance not only bears the costs of a single accident that harms oneself but also bears the costs of third-party losses. If you have an accident involving a third party and you have to be responsible for that third party you no longer need to worry, you no longer need to pay for the third party involved in the accident. This insurance will take care of everything from repair costs to medical treatment.
What Are the Types of Car Insurance?
After knowing what car insurance is and having understood the benefits, then to buy this insurance you must also understand what the types of car insurance are, so you can decide to buy insurance that suits your needs. The following are the types of car insurance.
1. Total Loss Only (TLO) Car Insurance
This is an insurance product that guarantees the risk of theft and destruction of a car if the loss value is above 75% of the vehicle price before the theft or vandalism occurs. This insurance is known to be cheaper than all risk insurance.
2. All Risk Car Insurance
All-risk car insurance or comprehensive car insurance will cover the losses you experience due to minor car damage, heavy car damage, or even car loss. But you have to pay a lot of money to get the benefits that are not small.
3. Combined Car Insurance
This type of insurance is a combination of the two previous types of insurance, all risk and total loss only or TLO. By buying this insurance, you will get the benefits of a combination of the two types of insurance. The mechanism of this insurance is that car owners will benefit from all risk insurance in the first year and TLO protection in the following year.
4. Expansion Car Insurance (Rider)
This insurance is an insurance whose benefits are that the car owner will be given additional features in addition to the main protection of the selected type of insurance. However, in choosing this insurance, you must pay attention to your need, do you need these additional features or not. In addition, this additional feature is also not provided for free because there is a fee that you have to bear.
5. Collision Coverage Car Insurance
This type of insurance is insurance that protects against losses due to car accidents caused by the driver. The benefit of this insurance is to replace the cost of damage to the car and can even provide compensation according to the price of the car.
6. Car Liability Insurance
If you choose this insurance, you can claim against cases of car accidents caused by drivers such as collision coverage car insurance, but there is still an additional fee in the form of medical bills if the driver is injured and requires medical services.
7. Personal Injury Protection Car Insurance
This type of insurance provides special protection for drivers who experience a personal accident while driving a car.
From the explanation above, hopefully, you are familiar with hearing about what car insurance is, the benefits of the types of products, and can answer your doubts to start thinking about what type of car insurance you might need and have more benefits for yourself. Insuring your car does not mean expecting bad things to happen to your car or yourself, but this is a form of anticipating bad possibilities which of course we don't expect but might happen at any time. Insuring a car also does not mean that we can then drive arbitrarily without vigilance and caution because bad events that occur can be covered by insurance losses. Precisely by insuring the car, you still have to be careful.