Types of Car Insurance Policy Guarantees

If you have a car, you are required to insure it. This insurance not only protects your car but also you as the driver, your family as a passenger, even the car, and other drivers. You may experience a dilemma in determining the best insurance option, but is it possible to get that guarantee and at the same time save your money?

Basically, vehicle insurance covers two main categories, namely guarantees for your vehicle, as well as guarantees of legal liability to third parties. In addition to providing protection for vehicles, this insurance can pay compensation to third parties who suffer losses.

According to articles in car insurance sundries, in Indonesia there are generally two types of car insurance policy guarantees which will be explained below.

Total Loss Only

This type of guarantee or insurance coverage is protection against physical damage to vehicles that reaches 75% or more, up to total damage from the condition of your car caused by an accident. Common examples are collisions, collisions, cars skidding, falling off, or overturning. The total loss here means that the insured (ie you) can no longer use the vehicle, either for a certain period of time or indefinitely.

This type of coverage is usually included in the vehicle loan package, because the vehicle is used as a credit guarantee and the lender must ensure that his interests can be protected.

Four main reasons for choosing a total loss insurance guarantee:

  • Everyone makes mistakes. Even though you are basically a good driver and always careful, there will be times when you are complacent and lack focus for a reason. The main reason for buying this type of insurance is to protect when an accident occurs is considered as your fault.
  • You drive a new car. A new car is an asset, of course, having a higher value than the old car. You can protect this asset with a guaranteed total loss.
  • To get advocacy assistance. This advocacy assistance is needed when you have an accident where the guilty party cannot be decided directly.
  • For protection when driving a rental car. Some companies offer extended warranties for rental cars that are used for personal and non-business purposes.
  • Combined or Comprehensive ( All Risk )
  • If the total loss guarantee protects against damage of 75% or more of the condition of the car caused by an accident or collision with another car, in principle the combined or comprehensive policy guarantee provides compensation for the damage to the car caused by any matter whether collision, accident or including floods, storms, fires, theft, fallen trees, vandalism, to damage due to wild animal attacks.
Three main reasons for choosing a joint or comprehensive guarantee:
  1. The resale value of your car is still high. Just like the second point of the reason for choosing the total loss guarantee above, this combined guarantee can protect your assets, not only from accidents but also from natural disasters or other calamities.
  2. Your car is a target of theft. Not only branded and expensive cars are the target of thieves, but antique cars can also skyrocket in value and can be hunted for expensive and rare spare parts.
  3. You cannot predict the future. If a car accident can still be avoided with a more careful driving attitude, this is not the case with natural disasters or other calamities that you cannot expect and control. By having this type of guarantee, you will always be ready to face the unexpected.
The two types of guarantees above have different terms and conditions. Usually these provisions depend on the type of vehicle, the purchase price, the brand and type, and the age of the vehicle. Each insurance company also sets different conditions, so you need to pay close attention to this in order to get the best guarantee.