Car Insurance All Risk vs Total Lost Only

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If previously we have discussed what is insurance, benefits and types, this time we will discuss about Car Insurance

Not only humans need protection, our assets are also protection workers, including vehicles such as cars.

There are two types of car insurance that you can choose, including All Risk and Total Lost Only. Both of them have their own advantages and benefits. More fully, we discuss below!

Why is car insurance important? Because the car is one of the valuable assets that you have and has a high buy and sell value. So that the car's financial records become high personal assets.

Because, the car can be pawned as a loan and a high sale value. Well, because the car is in the category of valuable assets, so the car also has a high financial risk if something happens

For example, if one day your car is damaged due to being hit or experiencing something like someone's car stolen, then the cost of repairing or repurchasing a part of a stolen car is not cheap.

Well, to be clearer, it's a good idea to first know what car insurance is and how to choose the best protection for your needs.



Definition of all risk insurance and total lost only

Protection of this car is divided into two types, namely all risk car insurance and total lost only. For car owners who want to take car insurance, you must know clearly what the differences are, both in terms of understanding and the advantages and disadvantages of each.


1. All risk car insurance

The first thing we discuss is all risk car insurance or commonly known as comprehensive insurance or overall insurance. All risk car insurance is protection that is intended for all types of damage to our vehicle, both small and large damage such as abrasions, broken mirrors, loss, accidents, destruction due to riots, to coverage against third parties (third party liability).

This type of all risk car insurance has a premium that is much larger up to 2-3 times compared to the type of total lost only because it can be said that the cheapest all risk car insurance covers all kinds of risks that can make you lose big or small.



2. Total car insurance lost only

As for the total lost only car insurance, this is car insurance that provides protection when your car is damaged above 75%. Why must it be 75%? Because when the car was damaged up to 75% whether it was due to an accident or something else, the car was said to have been badly damaged so it could not be used so it had to be replaced.

Since the protection provided by car insurance is totally lost only only covers large damage, the premium paid is lighter than all risk car insurance because you will not get a replacement if the car is only scratched or slightly damaged.

You need to know that most of the major damage covered by car insurance is totally lost only due to accident and theft. As for the risks due to riots to natural disasters such as tsunamis, landslides, earthquakes, volcanic eruptions, etc., you must add to the expansion of additional guarantees.


The thing that determines the level of car insurance premiums

In determining insurance premiums, each insurance company has a different calculation. But in general there are several factors that are considered by the insurer in determining your car insurance premium. Are as follows :


Transportation type

The type of vehicle you have is the main factor determining the amount of premium you have to pay. This type of vehicle is divided into several types, ranging from sedans, sports cars, trucks, and so on. In addition, the insurance company also looks at the brand, age, and status of the car in order to estimate the price of the car you have.


Driver age

The age of the driver is included in the determinants of considering the value of your car insurance premium. On average, under 30 years of age and over 60 years are included in the vulnerable age category so the premiums charged can be higher.

Why is age vulnerable? Because this age is an age where the risk factors for accidents are quite high.

Young people under 30 years old are ages where a person has bad driving habits such as breaking traffic, getting drunk and so on.

Whereas the age above 60 years is an age that is unproductive and the ability to drive a car becomes less like fatigue, focus and so on.


Credit track record

This is also an important factor in determining your low premium car insurance. If you have a good credit track record at a bank or other financial institution, you can get a low insurance premium.

Why is that so? Because the insurance is also involved with the bank so that if you have been in arrears in the payment of credit installments or have a blacklist status from the bank, the premiums needed can be higher.



Driving history

For those of you who often violate the traffic rules, now try to be more obedient. Because the insurance will also ask the police about your driving history.

Are you often hit by speeding tickets, accidents, and so on. This is done to assess the level of risk you have. If your driving history is clean, the premiums obtained can be lighter.



Location of domicile and distance traveled

The domicile location is very influential in determining car insurance premiums. Because the insurance company has a record of locations that are considered prone to crime. In addition, they will also survey whether your house has a garage or not.

If questioned again, it is better to choose which type of insurance, both of them have their own advantages and disadvantages so that you can adjust it to your needs and financial conditions. But what if we want to combine or combine the two? Combining both types of car insurance all risk and total lost only is indeed already done so that the benefits provided can be more maximal.

It is recommended to choose all risk car insurance in the first and second year first because the condition of the car is still very new so that if there is a scratch or a small risk, you can still get protection. Later when you enter the third year, you can extend your car insurance using a total lost only with an additional guarantee. This method is done so that later you will benefit from this type of combination protection.



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