Benefits of Vehicle Insurance and Types of Policies

Vehicle Insurance

The benefit of vehicle insurance is to provide compensation if there is damage to the vehicle. Coverage of coverage, among others, if there is a loss, for example, submerged in a flood, damaged due to a hit or hit, and so on. Therefore, when deciding to own a vehicle, both private and commercial, make sure you are protected by vehicle insurance.

So, what benefits can be obtained in a vehicle insurance policy? Come on, see the following reviews:

7 Benefits of Vehicle Insurance

Simply put, the benefits of vehicle insurance are providing coverage or a financial solution when there is a risk of a total loss to part of it. The risk of total loss in question is lost, stolen, stuck, and the like. While partial losses are blisters, dents, and the like. 

So, the benefits you get depend on what type of vehicle insurance you choose. Even so, in general, there are 7 vehicle insurance benefits that you can get.

  • Become a financial solution when there is a loss
  • Help manage finances better
  • Practical solutions when losses occur
  • Cover the cost of the rental car and crane
  • Provides peace of mind
  • Maintain vehicle value
  • Solutions to the risk of high accident rates

1. Become a financial solution when there is a loss

The cost of repairing vehicles, especially cars, is not cheap, it can even reach millions of rupiah. Especially if the loss is large, for example, if it is stolen by an irresponsible person, it means that the value of the loss can reach the total price of the vehicle. Now, when protected by vehicle insurance benefits, the value of the loss will be borne by the insurance.

2. Help manage finances better

When your vehicle is damaged, it will indirectly have an impact on your financial arrangements. For example, a private vehicle breaks down due to being submerged in a flood, you have to use emergency funds or savings for the repair costs.

Meanwhile, conventional vehicles will interfere with your income. For this reason, the importance of vehicle insurance benefits is to cover repair costs in the event of a loss.

3. Practical solutions when losses occur

Some car insurance options provide pick-up services for cars that are damaged or suffer a loss. That means, you no longer need to bother taking your car to partner workshops.

Simply call the insurer to file a claim and the insured car will be picked up at a certain location. After the repair and claim process is complete, the customer's car will be handed back to the location as stated in the policy. Very practical, right?

4. Cover the cost of the rental car and crane

Besides, there are also car insurance policies that provide vehicle insurance benefits in the form of rental and crane fee coverage. This means that as long as the car is being repaired, the insurance company will cover the cost of a rental car or taxi with mutually agreed terms in the policy.

Besides, if the insured car crashes while on the way, the insurer will swiftly provide tow services for free according to the terms of the policy.

5. Provides peace of mind

Knowing that there is insurance that will cover the cost of damage to the vehicle can certainly make us calmer in driving every day. However, of course, insurance is not a reason for us not to be careful when driving, huh.

6. Maintain vehicle value

This vehicle insurance benefit is very important, especially if you plan to sell it in the next few years. This is because the value of the vehicle will decrease if there are deficiencies such as dents, berets, and the like.

Therefore, insurance can help maintain the value of your vehicle by ensuring that your car or motorbike is in the best condition.

7. Solutions to the risk of high accident rates

The accident rate in big cities is quite high. Because it is very important to have insurance to cover the cost of losses if an accident occurs in a vehicle. 

Besides, some car insurance policies also provide personal accident insurance benefits at once. This means that if an accident occurs, the passenger and driver's hospital treatment costs will also be covered by insurance.

Types of Vehicle Insurance and Coverage

After knowing the benefits of vehicle insurance in general, you also need to understand the types of policies offered by insurance companies in Indonesia. There are two types of vehicle insurance that you can choose from, namely Total Loss Only (TLO) and All Risk.

  • Asuransi Total Loss Only (TLO)
  • All Risk Insurance

1. Asuransi Total Loss Only (TLO)

This type of vehicle insurance provides benefits in the form of compensation if the customer's vehicle is damaged. So, what is meant by total damage in this type of TLO insurance is that the value of the loss reaches more than 75 percent of the price of the vehicle at that time. As for the coverage provided by the insurance, namely compensation for the replacement of a new car. Depends on the policy chosen.

2. All Risk Insurance

All risk insurance, also known as comprehensive, covers more complete losses, both minor and severe damage. So, not only the risk of the car being lost and mired in but minor damage such as abrasions and dents will also be covered by insurance. Therefore, the premiums for this type of vehicle insurance are generally more expensive than TLO.

What are the benefits of vehicle insurance?

The benefit of vehicle insurance is to provide compensation when there is a risk of loss such as renewables, dents, being flooded, and the like. The benefits provided are adjusted to the insurance policy chosen.

How do you claim vehicle insurance benefits?

There are three stages of vehicle insurance claims that need to be done, namely reporting the loss to the insurance company as soon as possible, submitting a claim, and preparing the required files.

What are the characteristics of good vehicle insurance?

In choosing good vehicle insurance several criteria need to be considered. Among others are:

  • The types of vehicles that can be insured vary
  • Has complete customer service
  • The police fully explain the benefits up to the risks incurred and excluded
  • The vehicle insurance premium is proportional to the coverage provided

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