Car insurance is one of the important things for motor vehicle owners, especially in Asia.
This is because the risk of accidents, theft or damage due to natural disasters is quite high in this area. However, not everyone knows what to pay attention to before buying car insurance.
The following are some things you need to know before buying car insurance in Asia.
- Types of car insurance
There are two types of car insurance that are commonly offered by insurance companies, namely total loss only insurance (TLO) and comprehensive insurance (all risk). TLO insurance only covers losses if your car is totally damaged or lost due to theft. Meanwhile, comprehensive insurance covers losses due to partial or total damage, theft, fire, flood, and legal liability to third parties. Of course, the premium that must be paid for comprehensive insurance is higher than for TLO insurance.
- Factors affecting car insurance premiums
Car insurance premiums are costs that you must pay periodically to the insurance company in exchange for the protection provided. Car insurance premiums are influenced by several factors, including:
- Car types and prices. The more expensive and luxurious your car, the higher the premium to be paid.
- Age and condition of the car. The older and damaged your car, the higher the risk of damage or loss that must be borne by the insurance company.
- Operational area. The more congested and riskier the area where you drive your car, the higher the premium to be paid.
- Claim before. If you have filed an insurance claim before, your premium will increase because you are considered a high-risk customer.
- Additional facilities. If you want to get additional protection, such as life, health or personal accident insurance for the driver and passengers, then you have to pay an additional premium.
- How to choose a car insurance company
Choosing a car insurance company should not be arbitrary, because it will affect the quality of service and your satisfaction as a customer. The following are some tips for choosing the right car insurance company:
- Check the reputation and legality of insurance companies. Make sure that the insurance company you choose has a business license from the relevant authority and has a good track record of settling customer claims.
- Compare products and prices. Don’t stick to one insurance company, but compare the products and prices offered by several insurance companies to get the best offer according to your needs and budget.
- Choose the appropriate insurance package. Adjust the type and coverage of insurance coverage according to the type and condition of your car. Do not choose an insurance package that is too low or too high, because it will make you lose in the future.
- Read the terms and conditions carefully. Before signing an insurance policy, make sure that you understand all applicable terms and conditions, including your rights and obligations as a policyholder, claim procedures, limitations on coverage, and exclusions and limitations.