Cheap Car Insurance Policy For Full Coverage Claim – Insurance is one of the important needs if you want to have stable and healthy personal finances. In addition to adequate emergency funds, ownership of protection is something that should not be postponed.
By having insurance, personal finances can be protected from the risk of loss that may occur when faced with conditions that require large costs. For example, when you fall sick and need medical expenses or when the backbone of your family dies in an accident, your family income stops.
The pandemic conditions make the need for insurance even more relevant. The risk of contracting infectious diseases and the risk of death that threatens to make insurance an important effort to maintain physical and financial health and peace of mind in addition to social distancing.
Well, if you are currently considering buying insurance in the US, Canada, Australia, England, Germany, France, the Netherlands, Italy, Singapore, and Luxemburg, you should first identify the important terms in insurance.
Cheap Car Insurance Policy For Full Coverage
Understanding the terms of insurance will help you find the insurance product that best suits your needs. What are the insurance terms that are important to understand? Listen below:
What is an Insurance Policy
Insurance Policy is a term to refer to a written cooperation agreement contract between the Insurance Provider Company (Insurance Insurer) and the customer of the Policy Holder. All Insurance contracts, be it Life Insurance, Health Insurance to Loss Insurance, are called Insurance Policies.
The content of the cooperation agreement contained in the Insurance is an agreement that the Insurance Provider is willing to bear the risk of the Insured whose name is listed in the policy, within a certain period of time according to the agreement. To get insurance protection from the insurance provider, the policyholder is required to pay the agreed premium fee.
The Insurance Policy also contains General Policy Provisions, details of the rights and obligations of the Insurance Provider, Policy Holder, the range of Insurance Benefits provided, articles that mention exceptions to protection, and articles that mention things that can cancel the Policy.
In addition, the Insurance Policy is usually accompanied by a sheet of Coverage, Special Provisions, and a photocopy of the Insurance Application Letter (Claim Letter).
Insurance Policy includes important documents that have legal force. Therefore, you must store it in a special place that you can easily access when needed, for example when you want to claim insurance.
Risks occur unexpectedly and can result in financial losses. For example, my friend had a dengue fever and had to be hospitalized.
This happens suddenly and requires medical expenses, so emergency funds or savings need to be sacrificed. Of course, it’s a shame if the money we save to buy something is actually used because of risk. Therefore, we need to carry out risk management so that financial losses can be mitigated.
In financial planning, you can do risk management by buying insurance products. You need to pay a premium to be able to transfer the risk to the insurance company, so the risk of financial loss will be borne by the insurance company.
For example, if you buy a health insurance policy, then you can claim medical expenses and hospitalizations with the insurance company, so you don’t have to sacrifice savings or emergency funds.
Then, how to buy an insurance policy? The first thing that needs to be done is to determine the type of insurance. Choose an insurance product that suits your needs. If you want to reduce the risk of getting sick, then you need to buy health insurance.
However, if you want to mitigate the risk of death and protect the family you support, then you can choose life insurance. Make sure you buy insurance products from an official agent of an insurance company that is registered and supervised by the OJK. Next is to study the product and the contents of the insurance policy.
An insurance Policy is a contract/agreement letter as proof of risk transfer from the insured to the insurance company. When buying insurance products, you have time to study the contents of the insurance policy. Here are 5 things to consider when reading an insurance policy:
- Personal data of the insurance holder and the insured
- Insurance benefits and excluded risks
- Terms of premium payment and claim procedures
- Cost and illustration of insurance value; as good as
- Rights and obligations along with other provisions.
Make sure you understand the exclusion clause and don’t let your claim fail because you don’t understand the content of the exception clause.
After understanding the products offered, you can start filling in data and filling out insurance forms. Henceforth, the insurance company will conduct a risk survey. For example, if you buy health insurance, a health check will be carried out, while for home insurance, the company will check the condition and location of the house.
After the results of the risk assessment are carried out, you will get an overview of the calculation of the insurance value and premiums to be paid.
Make sure you also understand the cost and illustration of insurance value, for example in the unit link illustration, you need to understand the risk of insurance impairment.
If you do not understand, you should ask the insurance agent that offers the product. After understanding, you need to pay the premium and confirm the premium payment. Henceforth, the insurance company will apply for an insurance policy for you to keep.
If you experience the risk covered by the insurance policy, then you can file a claim with the insurance company by filling out a claim form and bringing the necessary documents.
That’s the explanation of how to buy an insurance policy, let’s start buying insurance to protect yourself and your family.
How to claim car insurance smoothly
Car insurance is included in the type of motor vehicle insurance. Motor vehicle insurance is divided into two types, namely All Risk insurance and Total Loss Only (TLO) insurance.
TLO is an insurance program that only protects cars from two types of accidents, namely lost due to theft and collisions whose repair costs are above 75% of the insured value.
All Risk car insurance is insurance that protects against all kinds of risks or damage that occur to motorized vehicles as long as they are not excluded from the insurance policy.
For cars that are over five years old, insurance companies usually only provide insurance in the form of TLO. However, there are several insurance companies that offer All Risk or All Risk Plus Huru Hara insurance. However, the premium costs are more expensive than cars that are less than five years old.
Car Insurance Claim Requirements Documents
The documents required for a car insurance claim are:
- Photocopy or scan of ID card.
- Photocopy of Motorized Vehicle Owner’s Book.
- Photocopy of Driver’s License and Vehicle Number Certificate
- Registration form (can be obtained from the website of the agent or insurance company).
- Vehicle photo.
After the conditions are met, the insurance officer will conduct a motor vehicle survey.
How to Claim Car Insurance
There are several ways to claim car insurance according to the type of loss suffered, namely:
Claims for loss/damage of vehicle parts due to malicious acts: The Insured fills out a loss report and signs it.
- Photocopy of insurance policy.
- Photocopy of Vehicle Number Certificate.
- Own identity
- Information from the local police.
Claims for the loss of the entire vehicle due to evil deeds: The Insured fills out a loss report and signs it.
- Photocopy of insurance policy.
- photocopy of Vehicle Number Certificate.
- photocopy of Driver’s License.
- Information from the local police.
- Certificate from the local police for a certificate from Kaditserse for the missing vehicle.
- Car identity blocking letter.
Claims for vehicle damage due to accidents: The Insured fills out a loss report and signs it.
- Photocopy of the insurance policy.
- Car identity.
- Driver’s License.
- Information from the police and a letter of demand from a third party if any.
Risks Not Covered by Car Insurance
Risks that are not covered by car insurance that cannot be claimed include:
- Loss of profit/earnings.
- As a result of the insured’s evil deeds, husband/wife/children/brother, people with the knowledge/permission of the insured, and people who work for the insured.
- As a result of pulling/pushing another vehicle, pulling a trailer, learning to drive, waiting in line, committing a crime, being overloaded, being hit by someone under the influence of alcohol, and embezzlement.
- Vehicle material wear, rust, and due to nuclear reaction/radiation warfare.
- Due to insects or small animals.
- Driving on forbidden roads/crossing closed roads.
- The driver does not have a valid driver’s license.
- Used in skill competitions.
- The vehicle is operated in a damaged/unfit-for-road condition.
Car Insurance Indemnity
In auto insurance, compensation can be made by repairing the damaged vehicle at a repair shop selected by the insurance company. The Insured can take the vehicle that has an accident to the workshop and fill out a claim form, then the vehicle will be inspected and repaired.
Determination of Compensation Value
In the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI), the determination of the compensation value includes:
- If the damage is repairable, it is based on a reasonable repair fee.
- If the damage cannot be repaired, it is based on the cost of spare parts in the free market plus a reasonable installation fee.
- If spare parts are not available in the free market, pricing is based on the last price recorded in Indonesia or the insured provides the spare parts concerned and the insurance company reimburses the cost of the spare parts, including reasonable installation costs.
This is an explanation regarding cheap car insurance policies. The cost of the policy depends on the facilities that you will get.