Although you have been careful and ensure that you are safe when driving, accidents can still occur due to the negligence of other motorists or due to natural conditions. For this reason, every four-wheeled vehicle owner is important to have protection in the form of car insurance.
As is known, car insurance provides protection for vehicles from various risks such as accidents, natural disasters, fires, damage, riots, to loss in accordance with the selected insurance policy.
The following are things that are important to know before deciding to buy a car insurance product.
Types of Car Insurance
The car insurance products that are generally circulating in the community consist of two types, namely All Risk car insurance or called comprehensive and Total Loss Only (TLO) insurance. The difference between All Risk and TLO car insurance lies in the coverage benefits.
All Risk car insurance provides coverage for all types of car damage, while TLO insurance covers the cost of total damage only with a claim cost of more than or equal to 75% of the car price.
Although All Risk car insurance premiums are more expensive when compared to TLO car insurance, they get more complete coverage protection. Therefore, the price issued is proportional to the benefits obtained by the vehicle owner.
Get to Know More About All Risk Car Insurance
As previously explained, All Risk car insurance covers all types of damage to the car due to accidental things, both small and large. So no matter how light or severe the damage or loss to the car, it can be covered by this one insurance.
Offering extensive coverage coverage, this one insurance has many benefits. Therefore, in general, the All Risk car insurance rate is higher than TLO insurance which can only cover 75%.
Some examples of forms of damage and losses that can be covered by All Risk car insurance are scuffed cars, damaged bumpers, burned cars, cars entering ravines, to stolen cars.
No less important to note, each insurance policy has different provisions. Therefore, before buying All Risk car insurance, make sure you have carefully read the mutually agreed policy.
Benefits of All Risk Car Insurance
All Risk or comprehensive car insurance has many benefits or advantages for vehicle owners, including:
1. Bear Any Kind of Damage
Although the All Risk car insurance rate is a bit more expensive, but this insurance can cover all kinds of damage, both small and large, including loss. Of course, this is comparable to the premium rate offered.
2. Gives Great Benefits
Because the tariffs are expensive, the coverage benefits obtained must also be very large.
Usually, All Risk car insurance not only covers the costs for repairing damage, but also covers other things such as third-party legal liability, third-party car repair compensation that was also damaged by a collision, and many others.
And some insurance companies exist that provide additional insurance in addition to car insurance, such as personal accident insurance.
3. Lighten Your Load
Without insurance and when you have to repair the car yourself, there are definitely a lot of costs that must be incurred to repair it in the repair shop. It's different if you have insurance, it will be able to ease the cost burden a little.
Benefits of All Risk Car Insurance Expansion
Although it has a wide scope, it is also important that you apply for additional benefits expansion or riders in All Risk car insurance. To get these benefits, of course, you as a customer will be charged an additional premium fee.
Here is a list of the types of expansion benefits of All Risk car insurance that insurance companies typically offer:
1. Coverage of claims due to hurricanes, floods, storms, hail, and landslides.
2. Coverage of claims due to earthquakes, tsunamis, and volcanic eruptions.
3. Coverage of claims due to riots, riots, terrorism, and sabotage.
4. Third-party legal liability benefits.
5. Personal accident insurance benefits.
6. Claim coverage at an authorized workshop.