Vehicle Insurance: Ensuring Protection on the Road

On this occasion, we will review the benefits, types, and importance of vehicle insurance, especially cars or motor. Check out the following description to get more information. Insurance is an agreement between the insurer and the insured regarding the transfer of risk from the insured to the insurer.The existence of this agreement requires the insured to pay a premium every month.

On the basis of this premium, the insured has the right to protection against financial losses that occur within a certain period of time. This protection is provided by the insurer, in this case the insurance company.

There are several benefits and importance of car or motor insurance for vehicle owners, as follows.

Provides a sense of calm

car or motor insurance can provide a sense of calm for drivers and owners because with this insurance, it means that damage to the vehicle has been covered. This sense of calm is a form of benefit because insurance holders have taken preventive action to deal with losses to their vehicles.

Train financial management

Another benefit of car or motor insurance is training to manage finances, because paying insurance premiums every month makes us learn to manage the expenses needed for vehicles. Making regular insurance payments also provides convenience because it can prevent unexpected expenses when there is vehicle damage.

One way to invest

Using insurance can be a way to invest. Currently, there are many unit-linked insurance products. This type of insurance includes investment products in it.

So, when you choose to buy unit-linked insurance, you will get two benefits.

1. the benefit of protection from insurance.

2. the financial benefits of the investment products purchased.

Types of Car or motor Insurance

In general, insurance products are divided into two, namely comprehensive (all risk) and total only loss (TLO). Here is the full explanation.

1. Comprehensive (all risk)

This type of car or motor insurance provides coverage for overall car damage ranging from minor to major damage, including when a vehicle is lost. Because it covers all damage to the car, the cost of this insurance premium is more expensive than TLO car insurance.

2. Total Loss Only (TLO)

TLO insurance is car or motor insurance that only covers major damage (more than 75% damage) or loss of vehicle. So this insurance can only be disbursed when the damage to your car is very severe or you lose your car due to theft or robbery. If the damage that occurs is below 75%, the disbursement of these insurance funds cannot be done.

That's a brief explanation of the benefits of car or motor insurance types and importance. By understanding this information, it is hoped that you can determine the right type of insurance for your vehicle.

In choosing an insurance product for your favorite car or motor , make sure to choose a product that suits your needs and abilities. Thus, you will not feel burdened to pay insurance premiums every month.