Types of Motor Vehicle Insurance

Insurance is insurance (an agreement between two parties, one party is obliged to pay the fee and the other party is obliged to guarantee fully the dues payer in the event of something that happened to the first party or his goods in accordance with the agreements made. Motor Vehicle Insurance is the owner of a motor vehicle entered into an agreement to the insurer to pay insurance contributions (premiums) are usually per year, but can also be done in a few years at a time and the vehicle insurance is obliged also to provide assurance to the insured vehicle in the case of mild to severe damage repair and replacement of part or all insured motor vehicle if you have a variety of things that damage caused by a variety of things in accordance with the insurance agreement.

The amount of motor vehicle insurance premium is calculated based on the percentage of the price of the new vehicle and the vehicle in the market price if not a new vehicle. The more expensive the car, the percentage is smaller. This percentage is calculated results for the insurance premium to be paid by the users of insurance services to the insurance. In this insurance agreement, the owner of the vehicle / premium payer would have a valid certificate of insurance as insurance participants to have a policy number and contains the selected type of insurance. This policy is useful when going to make an insurance claim.

Types of Motor Vehicle Insurance

Types or kinds of motor vehicle insurance is mostly composed of two (2) types of insurance, namely: type Comprehenship Insurance and Insurance Type TLO (Total Loss Only).

Comprehenship / All Risk: is the type of coverage that must be borne by the insurer to the insured vehicle, namely a guarantee against mild to severe damage and even loss of the vehicle. So, if the vehicle is damaged slightly, then the insurance company will cover all repair costs.

TLO (Total Loss Only): that is a guarantee against loss of any vehicle or if the damage is more than 75% of the price of the vehicle.

Thus, this type of insurance Comprehenship or All Risk is a type of insurance that is widely used in the vehicle passenger cars. While many types of insurance TLO used for freight vehicles and motorcycles.

In addition to the above options, there are a variety of additional insurance packages such as insurance due to natural disasters and others. The amount of premium for All Risk / Comprehenship greater than the premium type of TLO (Total Loss Only).

The cost of insurance claims is around Rp. 200.000, - every time you make an insurance claim per incident. As for the claim TLO around Rp. 500.000, - per occurrence. If the repair cost is less than the cost of a claim, the insurance company itself will give consideration to the owner of the vehicle to do the repairs themselves or through insurance claims. For example, the cost of repairs around Rp. 100.000, - while the cost of insurance claims amounting to Rp. 200.000, - then you should do the repairs yourself just because it is cheap.

For TLO warranty coverage will be reduced each year from the initial price of new vehicles, for example: The first year of the insurance company will provide coverage guarantees 100%, 80% the second year, third year 70%, and so on, because the price of the vehicle each year will continue to decline. Different again if the premiums are paid every year, of course, will remain a guarantee of 100%.

How to Claim Insurance

To make an insurance claim vehicles were damaged, lost, etc., then the various conditions that must exist such as: Photocopies (Photo Copy) Insurance Certificate, Driver's Licence, ID cards, and the cost of claims, Certificate of Loss of Police (if the vehicle missing), etc. This claim must be made within a maximum limit of insurance claims, so that the claim can be accepted and not lost in vain.

Motor Vehicle Insurance is urgently needed in order to obtain assurance assets in case things are not desirable in the future. We can not predict bad things will happen, whether it was an accident, loss, natural disasters and other calamities. With so many party motor vehicle insurance providers today, of course, we can choose the amount of insurance premiums vary.