7 Tips for Choosing the Best and Cheapest Car Insurance - Choosing a cheap and good car insurance must consider several factors, such as the type of insurance, the product, and the right ratio between premiums and services.
Here are some tips for choosing the best vehicle insurance that you can consider:
1. Choose the appropriate type of insurance (all risk / TLO)
Identify the needs and the terrain that is often passed by cars, whether in a crowded city area or a damaged road. Usually, all risk car insurance is suitable for city car drivers because there is a high risk of getting blisters. Meanwhile, TLO car insurance is suitable for cars located in crime-prone areas.
2. Look for third party car insurance
Third party car insurance is a policy benefit that provides compensation in the event of a risk of an accident or collision involving a third party. For example, you accidentally hit the car in front at a red light. Well, the cost of damage to the car that you hit will be covered by the vehicle insurance. Even so, this vehicle insurance policy also has some exceptions, such as:
- The customer hits or pushes another vehicle while doing driving practice
- Losses occur due to vehicles used for racing, crime, carnivals, campaigns, and rallies
- Losses occur as a result of intentional or planned things
- The vehicle is driven by a driver without a SIM
- The vehicle suffers a loss due to the driver under the influence of alcohol or drugs
- Vehicles suffer losses due to natural disasters or riots
3. Compare policies from various vehicle insurance companies
In order to get an insurance policy with low premiums and complete benefits, prospective customers are advised to compare policies from various vehicle insurance companies in Indonesia online.
4. Choose an insurance company with trusted credibility
Credibility is not only a well-known brand, but also reliable about its services and as much as possible minimal complaints.
5. Choose a vehicle insurance that has a wide partner workshop
Vehicle insurance usually works with an authorized (authorized) repair shop from your car brand. However, there are also those who work with non-authorized workshops. Well, only a few vehicle insurance brands allow you to be able to make repairs to any repair shop. So far, the product that has this benefit is ACA Otomate Solitaire from ACA. Usually, vehicle insurance benefits like this are very useful if your car is damaged in an area that you are not familiar with.
6. Compare premium prices versus service features
Vehicle insurance premiums are already regulated by the OJK. However, the features and services from one product to another may vary even though the premium is the same. There is vehicle insurance that only covers the damage to the car, but there is also a cover for the driver and passengers as well. In fact, without additional fees. So, when you receive a vehicle insurance policy, you should first have what protection, features, and extra benefits are provided, then sign.
7. Complete the terms of car insurance
After determining the desired insurance policy, then complete the necessary car insurance requirements. There are several conditions that need to be completed when you want to register your favorite car in vehicle insurance. The following are the requirements for registering car insurance:
- Registration form provided by Lifepal or vehicle insurance company
- Photocopy of Vehicle Registration Certificate (STNK)
- Photocopy of Identity Card (KTP)
- Photocopy and original of Driving License (SIM)
- For foreign nationals, they must include a KITAS or KITAP
- Original TIN or SIUP Surat
How does car insurance work
Customers need to register their vehicle and then get a vehicle insurance policy which will usually be valid for one year. At the beginning, the customer must pay an insurance premium which the funds will be managed by the vehicle insurance company to cover various claims from customers.
How to choose a good car insurance
To choose a good and cheap car insurance, there are three main things to measure and benchmark, namely:
- Offers premium prices according to the table of upper and lower limits set by the government.
- Providing basic protection guarantees with a wider coverage throughout Indonesia.
- Offers premiums commensurate with the services and coverage provided.
Car insurance consists of two products that customers can choose from, namely all risk (comperhensive) and Total Loss Only (TLO). All risk car insurance which covers all types of risk of damage and TLO car insurance which provides protection or guarantees for severe damage or loss.
Is car insurance usury
Based on the MUI fatwa No.21/DSN-MUI/X/2001 concerning Sharia Insurance Guidelines, car insurance is allowed because insurance is considered a form of protection, contains elements of mutual help, and has an element of goodness (tabarru contract).
Basically every vehicle insurance product has a legal basis. The legal basis of insurance is protected by law, among others:
- Law Number 2 of 1992 concerning Insurance Business.
- The Criminal Code (KUHP) Article 1320 and Article 1774 concerning the coverage and agreement of two parties as well as agreement on the case of an uncertain event.
- Government Regulation Number 73 of 1992 concerning the Implementation of Insurance Business.
- Circular letter of the Financial Services Authority Number 6/SEOJK.05/2017 which regulates the determination of premium rates or contributions to property insurance and auto insurance business lines in 2017.
Thus the discussion about tips on choosing the Best and Cheapest Car Insurance, Hopefully the above reviews are useful for all of you.