How to Choosing the Most Profitable Car Insurance

Choosing the most profitable car insurance is quite difficult, because there are a number of factors that must be considered. There are those who say that the TLO type of insurance is more profitable, while others think that the all risk type of insurance can provide more protection. Then which one is correct?

 

1. Consider the premium

Because everyone's financial condition is different, the premium price set by the insurance company also has various effects. However, generally all risk charges a fairly large annual premium, which is around 2% – 3% of the car price, while the average TLO value for car insurance is 0.8% – 1%. The amount of all risk premium payments is often twice as high as TLO. Higher premiums are not always better, especially when your car has not suffered any damage. Remember all premiums paid annually are non-refundable even without a claim.

 

2. Consider the Year of the Car

Choosing the most profitable car insurance can also be seen from the age of the car being protected. The older the car, the cheaper the selling price. This of course will have an impact on the amount of insurance value obtained, especially if the car is over 10 years old. It should also be noted that the average insurance company does not accept applications for cars over 15 years old. The age of the car that is getting older means that the risk of damage is also higher and wider. So for this one it is recommended to buy all risk insurance only. Because the value that will be obtained can cover almost all vehicle repair costs. Even though it doesn't cover 100%, it's quite light.

Meanwhile, for new cars that may rarely experience damage, you should consider choosing the type of TLO insurance only. Because most likely the damage is only experienced in some parts of the car, which does not require high repair costs. Even new cars under five years old usually only experience minor damage such as scratches and abrasions.

3. Consider the Location of Residence

Consider the location where you live to choose the most profitable auto insurance. If the area where you live tends to be quiet with less heavy traffic, usually the risk of an accident is also low, so TLO insurance can be an option. It's a different matter if you live in a densely populated vehicle environment with a high number of accidents such as in Jakarta and its surroundings, the all risk type is the most ideal because it can protect the vehicle to the maximum.

 

4. Choice of a Credible Company

Currently, there are many insurance companies that offer their services in Indonesia. On average they provide the same benefits with not much different premiums, the difference is the quality of their services. Before buying a policy, try to find more information about the insurance company of your choice. In addition to the amount of premium and the insured value, another important thing that must be considered is the location where they are insured.

If you happen to often travel out of town, then choose a protection product that has facilities covering a wider area. It's a shame if for several years you have to pay for repairs yourself just because the accident is outside the coverage radius? The most important thing is to only choose companies that are already registered with the Financial Services Authority (OJK).

Read Too : Caring About Cars A Bit More By Choosing The Best Insurance Companies

 

5. Make a Comparison

Choosing the most profitable car insurance cannot be separated from how we compare. Since there are so many insurance companies that offer vehicle protection in Indonesia, you have to weigh which one provides more of the required benefits. Usually each type of insurance has a difference in terms of premiums, policies, and benefits.

Especially for new vehicle insurance companies, many of the promos they offer are usually free of premium discounts. However, don't get stuck on price alone if it turns out that the protection provided doesn't match your expectations. Look at the track record, if you often ignore customer claims, it could be that this insurance company is not healthy. At least from a conversation forum about insurance, if 70% of them talk about the negative side of a company, it is very likely that the products offered are not profitable for customers.

 

6. Consider the Quantity of Car Usage

Often policyholders feel disadvantaged because they continue to pay high premiums but never file a claim. Policyholders often feel cheated or cheated. Even though from the beginning every prospective insurance buyer has been explained about this. That there is a claim or not, the amount of premium deposited by the customer will become the property of the insurance company.

Therefore, for those of you who park your car in the garage more often, you should choose TLO protection instead of all risk because the risk of damage that will occur is relatively small. Unlike the case with car owners who often use their vehicles, or indeed travel by car everyday, you should choose all risk plus additional protection for demos, floods and other natural disasters that pose other risks to the vehicle.

 

7. Consider the Protection of the Showroom

We can also consider choosing the most profitable car insurance from the showroom where you bought the car. Currently, many car showrooms offer free maintenance and protection for several years for their customers. Protection includes repairs against minor damages such as scuffs and scratches. Because your car is still relatively new so the risk of major damage is small, while the showroom also provides additional protection, you should choose only TLO type insurance that provides protection for minor damages.

When buying a car, try asking the showroom, do they provide free maintenance and protection facilities? However, usually the price at the showroom that offers this benefit is slightly higher and repairs can only be made at a partner workshop whose location may be far from where the car was when it was damaged.

 

8. Consider the Budget

All car owners certainly want maximum protection by buying a policy for the all risk type. However, high premium prices are often an obstacle that discourages them from buying insurance. In fact, there is a lower premium if you choose the type of TLO insurance. However, because the claim can only be disbursed when the damage to the car reaches 75%, people prefer not to have any vehicle insurance. In fact, minor protection will still reduce the cost of repairs when the car is damaged.

Don't force a high budget just because you want comprehensive protection for your car, but choose one that suits your financial capabilities. At least the amount of the annual premium should not suck up more than 10% of your monthly income.

 

9. Consider Additional Benefits

There are several vehicle insurance companies that provide additional services in the form of life and health insurance for policyholders. This can protect you if at any time involved in an accident. In addition, the average vehicle insurance also offers an extension to various vehicle protections such as damage due to natural disasters. However, there is always an additional cost for this expansion. Get to know the additional costs and coverage of additional coverage. Which one provides the most extensive protection is the ideal one to choose.

Those are some tips and tricks for choosing the most profitable car insurance. Understand the types, benefits and amount of premiums, adjust to financial conditions. Don't force yourself to buy the highest police, because vehicle protection for one individual is not the same as for another. Be careful in choosing a company, because many old companies are bad in terms of management and service.

 

Insure your vehicle as soon as possible! 😊