Insurance is important, but many are underestimated by some people.
Indonesian public awareness of the risks that might occur is still very low. This can be seen from the public interest in buying insurance policies. For example, car insurance is one type of insurance that is less attractive. It is rather ironic indeed, if we compare the risks that are likely to occur.
So it is very clear that this type of insurance is needed by car owners. Based on the data obtained, traffic accidents are the third biggest killer in world, after coronary heart disease and tuberculosis.
The high level of accidents is due to human negligence (motorists). Even though we have driven in an orderly manner, often accidents are caused by other parties or can be said to be reckless drivers.
There is no need for us to talk about life safety, because it must be watched out at all times by increasing security. However, the risk of damaged vehicles is often unavoidable, whether it is light or severe damage.
This is what makes our vehicle, in this case a car, need to be insured. Because if you do not, it will require a considerable additional cost for small damage, such as abrasions on the body of the car.
If we discuss the matter of the accident, it is only one factor. Another factor is the theft of cars whose intensity is getting higher every day in different ways.
Therefore it may not be doubtful that your car needs to be insured.
How do you decide what type of insurance we need to take?
The following is a little explanation of the type of car insurance as an illustration for you.
This type of All Risk insurance can guarantee small or large damage, criminal acts from other parties, or vehicles lost due to stolen.
Extensions can also be submitted to this type of insurance, such as collateral due to riots, third party guarantees, natural disasters, and others.
Total Loss Only (TLO)
Although using the word loss, but the risk to be borne is not only loss but also damage above 70%.
This number becomes a benchmark because with such damage conditions your vehicle cannot be used anymore, even though the vehicle itself is still there.
So it can be concluded that vehicle insurance type TLO is a type of vehicle insurance that guarantees losses when your vehicle has an accident with damage above 70%, burns, and is lost due to being stolen.
So, for those of you who only experience minor damage such as beret on the body of the car or just a broken mirror, this type of insurance cannot be claimed.
Although every car insurance company has its own variation of policy, basically how to calculate TLO and All Risk car insurance premiums based on the insurance rate multiplied by the price of the car.
Insurance rates will vary from one another. This difference is based on type, year, and car plate which can also affect the amount of premium to be paid.
There is also insurance that considers the location, the age of the driver, the type of guarantee, to the credit track record.
For TLO insurance premiums, the average car insurance rate is 0.8-1%.
Following the calculation
The Average Cost Of Car Insurance By Age
According to a 2018 study commissioned from Quadrant Information Services, the average cost of car insurance varies significantly based on the driver’s age. The following example is the average cost of liability coverage of for a one-year-old Honda Accord, based on rates offered by the 6 largest insurance carriers:
Age: 20; State Minimum Coverage: $1,102; Recommended 100/300/100: $3,214 Age: 25; State Minimum Coverage: $608; Recommended 100/300/100: $1,745 Age: 35; State Minimum Coverage: $552; Recommended 100/300/100: $1,564 Age: 45; State Minimum Coverage: $525; Recommended 100/300/100: $1,469 Age: 55; State Minimum Coverage: $494; Recommended 100/300/100: $1,363 Age: 65; State Minimum Coverage: $515; Recommended 100/300/100: $1,402 Age: 75; State Minimum Coverage: $630; Recommended 100/300/100: $1,651 Age: 85; State Minimum Coverage: $778; Recommended 100/300/100: $1,987
As you can see, car insurance is significantly more expensive when you’re a very young driver, and it starts going down as you get more experience on the road. Once you’re over the proverbial hill, the rates start to climb back up again.
It pays to be a more experienced driver. Even as you begin to reach “elderly” territory, you’ll likely never pay more for car insurance than when you’re first learning how to drive. Recommended liability coverage is more than $1,000 more expensive per year for a 20-year-old on average than it is for an 85-year-old on average. Even the statewide minimum coverage is much more expensive for a young person than it is for an older person.