1. Protects from the Risk of Vehicle Theft
The price of buying a motor vehicle is not cheap, so you will definitely be very careful to keep your vehicle safe and remain yours. But disaster can happen to anyone, anytime, and anywhere. Even though you have taken care of it in such a way, the risk of vehicle theft is always there. So, what you can do to protect your vehicle from the risk of theft is with vehicle insurance. If your vehicle is stolen, the insurer will provide a certain amount of funds in accordance with the provisions of the insurance.
2. Protects from the Risk of Damage to Vehicles
Sometimes, even if you are very careful when driving your vehicle, accidents can still happen, be it minor or major accidents. No matter how small the impact of the accident, the cost to make it back to normal requires a lot of money. However, with vehicle insurance, the cost will be cheaper than the market price.
3. Helping You Accountable to Third Parties
When there is an accident involving a third party, usually you will have difficulty dealing with it and need a large amount of money to give responsibility for it. You will need legal and professional fees. If you have motor vehicle insurance, the insurance company will take over the responsibility of you or your driver in the event of an accident. So you don’t have to bother and pay dearly to be responsible.
How Much is the Premium Cost?
You can feel all the benefits of motor vehicle insurance as long as you are willing to pay a premium to the insurance company. The amount of premium you pay is based on several considerations, namely:
1. Vehicle type and price
The first thing to consider before determining the cost of vehicle insurance premiums is the type of vehicle you have. Types of vehicles are generally divided into 3 types, namely non-bus and non-truck vehicles, buses and trucks, and two-wheeled vehicles. This division based on vehicle type applies to Total Loss Only (TLO) and All risk insurance products.
After finishing categorizing the type of vehicle, the price of the vehicle is also a consideration before finally determining the cost of your insurance premium. Vehicle prices are also categorized into several categories. The more expensive the price of your vehicle, the more expensive the premium you have to pay.
2. Coverage Area
After considering the type and price of the vehicle, the area of coverage is the next consideration. The coverage area is divided into 3 parts, namely area 1 which includes Nanggroe Aceh Darussalam, North Sumatra, West Sumatra, Riau, Riau Islands, South Sumatra, Bangka-Belitung, Lampung, Bengkulu, and Jambi. Region 2 covers Jakarta, Banten, Bandung, Cirebon, Bogor, Purwakarta, Karawang, Subang, Garut, Tasikmalaya, Sumedang, Ciamis, and Banjar. And region 3 includes areas that are not covered in regions 1 and 2. This consideration also applies to TLO and All Risk products.
3. Vehicle Age
The last thing to consider in determining the premium price is the age of your vehicle when you enter insurance. The insurance facilities and rules also vary depending on each insurance company. The older your vehicle is, the more expensive the premium will usually be. As stipulated by the Financial Services Authority (OJK), there is an additional 5% per year for every vehicle that is over 5 years old and only applies to the All Risk type of insurance .
Let’s Register Your Vehicle Immediately
Taking care of your vehicle is important because it affects the safety of your soul, your finances, and that of others. It would be better if you register your vehicle for vehicle insurance when you just have the vehicle because in addition to being cheaper, this will also minimize losses that may occur to you and your vehicle. Let’s register your vehicle immediately so that it is always protected.