There are 2 types of car insurance products that need to be understood by customers, namely all risk car insurance and Total Loss Only (TLO). The difference lies in the protection provided, where all risk insurance provides comprehensive protection against all vehicle risks (unless there are exceptions). This makes people more choose all risk products for vehicle insurance, especially new ones (vehicles under 5 years old), even though the premium is, the cost of all risk is far above TLO insurance. While TLO Insurance itself only protects the vehicle if there is total damage (more than 75% cost) or loss.
Given the relatively large costs, then before taking this all risk product, prospective customers must really understand the product so as not to be disappointed or misperceptions that can cause losses in the future.
The following points need to be considered before taking an all risk insurance product, given the frequent misunderstanding that leads to disappointment:
Customize with Needs, Do You Need All Risk or Enough TLO?
Car protection needs can be seen from the level of crime or other levels of risk such as the density of traffic where you live or travel frequently with the car. If you don't have exact data, you can check on the internet or other media. If the neighborhood is not too dense and minimizes the risk of accidents whether mild or severe then the TLO product is suitable for you to take.
But if you live in an area with heavy traffic, the risk of a vehicle accident, at least a large enough scratch. Just one stroke will cost at least 500 thousand-1 million if you go into body painting. If this condition occurs, then the risk product is suitable for you to take. Another example is for example where residences are often affected by floods, then the all risk insurance chosen must have an extended guarantee against floods.
Before applying for all risk insurance for your car, do the following first:
1. Check Your Budget, Is It Possible to Cover All Risk Insurance Premiums?
Because it protects all risks, the premium costs for this type of all risk insurance are indeed more expensive than TLO type car insurance. Car premium payments are usually once a year, for a new car with a price of 200 million usually requires a premium of 3 million per year. Well, check the budget and adjust the financial budget. Vehicle protection is an important condition because movable assets are usually risk-prone. So, if you are ready to buy a car, you must prepare more funds to buy all risk insurance.
2. Compare Products and Choose the Best and Most Trusted
The amount of premium costs is indeed one of the considerations, but it is also necessary to consider the benefits and reputation of the insurance company that you will take. This reputation is important because it will affect the claims process later. It may be that the premium is a bit expensive but the ease of the claim process and the partner car repair shop network is much more. This is of course an important consideration besides premium costs.
By comparing products and seeing the reputation of insurance companies, it will be easier to get the right product from an insurance company that has a good reputation. Especially when comparing products and reputation can be easily done through the internet network.
3. Pay Attention to Company Reputation, Customer Testimonials To Not Be Disappointed
One way to look at a company's reputation is to be keen to pay attention to the testimonials of customers who have used insurance products, especially the problem of claims. Car insurance is identical to the claim process. If the claim is easy, the network is wide, the customer is satisfied then the testimonial will usually be good too. This is what drives the company to get various awards and slowly but surely its reputation will also go up.
In addition to paying attention to some important things before taking the all risk insurance products above, another important thing that needs to be understood is the claim mechanism. In general, the claim mechanism is relatively easy, if there is a risk the customer lives, contact your call center or sales acquaintance and submit a plan for the claim process. Just follow the instructions given.
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