Used vehicle insurance: is it necessary and how to get it?

Used vehicle insurance: is it necessary and how to get it?
Used vehicle insurance: is it necessary and how to get it?

Megasports4u.com – Used or second hand vehicles are options that are in great demand by the people of Indonesia. The reason is, the price of used vehicles is more affordable than new vehicles. In addition, used vehicles can also be a profitable investment if they are resold at a later date.

However, owning a used vehicle also has its own risks. The risk of damage, accident, or loss of used vehicles can occur at any time.

Moreover, the age of an old used vehicle makes its performance more susceptible to decline. Not to mention, used vehicle parts that may be difficult to find or expensive.

To anticipate these risks, you should consider having used vehicle insurance. Used vehicle insurance is an insurance product that provides financial protection for losses suffered due to the risk of damage, accident, or loss of a used vehicle.

By having used vehicle insurance, you don’t have to worry about spending a lot of money to repair or replace your used vehicle if unwanted things happen.

Used vehicle insurance will cover part or all of the cost of repairing or replacing your used vehicle in accordance with the terms of the policy.

Then, how to get the right used vehicle insurance? Here are some things you need to Consider Before Buying Used Vehicle Insurance.

Select the appropriate type of Used Vehicle Insurance

There are two types of used vehicle insurance commonly offered by insurance companies in Indonesia, namely:

  • Total Loss only (TLO) insurance. This type of insurance only covers losses resulting from total damage or complete loss to a used vehicle. Total damage means that the cost of repairs exceeds 75% of the price of the vehicle before a loss occurs. Total loss means that the vehicle is lost and not found within a certain time. This type of insurance is suitable for used vehicles over the age of 10 years.
  • All Risk or comprehensive insurance. This type of insurance covers losses due to partial or partial damage and total damage or complete loss to the used vehicle. Partial damage means repairs cost less than 75% of the vehicle’s price before a loss occurs. This type of insurance is suitable for used vehicles with an age of less than 10 years.

You can choose the type of used vehicle insurance that suits the age and condition of your vehicle. Also consider the amount of premiums and benefits offered by each type of insurance.

Compare quotes from different insurance companies

After determining the type of used vehicle insurance you want, the next step is to compare offers from different insurance companies. You can find information about used vehicle insurance products available on the market through the internet, social media, or recommendations from friends or family.

Some things you need to compare include:

  • The amount of the premium. A premium is a fee that you have to pay periodically to the insurance company to get protection. The amount of the premium is usually determined by factors such as the age and type of vehicle, the value of the coverage, the operational area, among others. Find out how much premium you have to pay to get the used vehicle insurance you want.
  • Sum insured. The sum insured is the maximum amount that will be paid by the insurance company in the event of a claim. The amount of coverage is usually adjusted to the market price of your used vehicle. Find out how much coverage is offered by the insurance company for the used vehicle insurance you want.
  • Additional benefits. An additional benefit is an additional facility or service provided by an insurance company in addition to basic coverage. Additional benefits can be emergency assistance on the road, reimbursement of vehicle rental costs, legal protection, among others. Find out what additional benefits are offered by insurance companies for your desired used vehicle insurance.
  • Terms and conditions. Terms and conditions are binding rules between you and the insurance company related to used vehicle insurance products that you buy. Terms and conditions can be general, special, or additional requirements that must be met by you as a policyholder or by the insurance company as an insurer. Find out what are the terms and conditions that apply to the used vehicle insurance you want.

After comparing offers from various insurance companies, choose a used vehicle insurance product that best suits your needs and capabilities.

Apply for Used Vehicle Insurance Online or Offline

After choosing the used vehicle insurance product you want, the last step is to apply for used vehicle insurance online or offline. You can apply for used vehicle insurance online through the insurance company’s website or application or other online platforms. Or, you can apply for used vehicle insurance offline through an agent, branch office, or insurance company partner.

Some documents that are usually needed to apply for used vehicle insurance include:

  • Completed and signed used vehicle insurance application form
  • Copy of vehicle owner’S ID card
  • Copy of vehicle registration and BPKB
  • Proof of premium payment
  • Photos of vehicle conditions

After applying for used vehicle insurance, you will receive an insurance policy as proof that you have become a customer of the insurance company. Keep the insurance policy well and re-read the applicable terms and conditions.

Thus the article about used vehicle insurance: is it necessary and how to get it. May be useful for those of you who are looking for financial protection for your used vehicle.

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