Not complete if you have a vehicle but do not have car insurance. Although indeed up to now more people do not insure their vehicles than those who take out insurance policies. They reasoned that insuring the car would cost every year. Even though they actually know there are benefits to having this insurance.
Actually, it is not right if you think that insurance is burdensome. Do you know there are two types of car insurance? Maybe all this time you only know one insurance premium. There are more affordable insurance premiums. Therefore, first understand the following two types of car insurance.
Types of Car Insurance You Can Have
Type of All Risk
One type of insurance is the most widely taken is all risk. If you take this type of insurance, the cost of any repairs, whether small or large, will be borne by the insurance company.
All types of damage are borne by the company, so that means the risk is very likely to occur. That is what causes insurance companies to set premiums that are quite expensive.
For example, if you have an accident on the highway that results in slight damage to the body, please contact the insurance. They will fix the car body as long as the claim you submit is qualified.
Likewise when damage is so severe. For example, your car has an electrical short circuit that causes the car to burn almost the entire body. Then you don’t need to worry. The company will still make changes.
So, it is very reasonable right if many people take this type of car insurance? However, you must remember that insurance premiums are quite expensive. More expensive compared to other types of vehicle insurance.
Different from the previous one. TLO stands for Total Loss Only. This means that coverage will only be given if the damage to the car exceeds 75 percent. Or your car is gone? The company will also replace a new car.
What if minor damage such as a car body blister due to being stuck by other cars on the road? Unfortunately, you cannot make a claim. So, not all damage is borne by the company, which is why this TLO car insurance premium is cheaper compared to all risk.
At first glance, it’s better to choose TLO than all risk. Not necessarily, actually. This depends on which benefits you. Need other considerations besides price when you want to make a decision.
Car insurance: Not Just the Price That Is Considered
Many people think that the important thing is getting vehicle insurance at a low price. Until finally they could finally choose TLO insurance.
There is one stage that they forget. Is TLO insurance really what they need? Are all the benefits of this TLO insurance that they want to get?
There should be a number of things that need to be taken into consideration.
Frequency of Car Usage
There is one formula that you must understand. The more often you use the car, the higher the risk of accidents. Conversely, if you don’t use the car too often, the risk of a car accident is low.
Now, you answer. Do you use the car often? Do you move by car every day? If yes, then all risk car insurance is right for you to choose.
Conversely, if you only occasionally drive a private car, just choose TLO.
Road Conditions that You Frequently Pass
Do you live in a city with high traffic jams? If yes, the potential for bumping into other cars is very high. That means minor damage such as a car body being scratched by another car body is very likely to occur.
Approximately, if the conditions are like that, what product do you have to choose? Precisely. All risk insurance is the right choice.
Potential for Theft
If you don’t use cars too often and in your area car theft often occurs, then choose TLO. This is the best.
At least these three things that you can use for consideration. So, you should not be too hasty, so choose the type of insurance by only considering cheap insurance premiums.
In addition to choosing the type of insurance, you also need to carefully choose an insurance company. You may have heard that there are people who find it difficult when making a claim. It could be because there is a claim procedure that is not fulfilled. However, it could also indeed be from the company which makes it difficult.