Tuesday, July 16, 2019

How to avoid car insurance without profitable claims

When you want to choose the most appropriate car insurance, there are usually a lot to be considered including future claims. Pretty much think of taking car insurance and unused it's name waste and loss. Because if there is no claim at all, means the premium is just so scorched and it's a pity already wasted a million money in a year only to buy insurance. So this triggers people think twice when it will insure his car.

Many people feel disappointed by this kind of situation. They do not feel satisfied with the policies applied by the majority of automobile insurance companies. Imagine, already paying a fairly high premium, but if unused goes away. Not to mention if there is a claim, not necessarily the sum insured that is out of expectation. Sometimes, when filing claims that paid claims are not in accordance with the agreement because this rule is from insurers that are often missed due to less thorough reading the term and condition filed. So as to be right?

This is what a number of insurance companies eventually begin to understand. Because there is no need to lose customers due to the aforementioned kind of things, then many car insurance start to offer car insurance products "no claim, money back". With the advent of this type of products, the rhythm and excitement of the car insurance market is increasing. Customers mostly feel tempted by the offer, because they think there is no harm in paying in advance if later money can be refunded. If it thinks it looks nothing hurt. But what is so easy?

Know the Program ' car insurance No Claim money back '

Often this type of insurance installs traps that are not thought by the customer. Surely many are thinking during the car either and there are no obstacles or accidents then the money can come back completely. Well, this thought should be revised. Because there could not be a losing business or not a profit at all. Don't easily think that money can come back easily. There must be a term and condition that should be studied clearly before deciding to take the car insurance.

Put in mind that premiums are the main source of life insurance companies. These premiums are usually used by insurance parties to pay a fee. Therefore there are several cost components that have been taken into account by the insurance company before setting a premium. The following costs are:

1. Claim ratio

rasio klaim
This cost component is the ratio between the premiums received and the claim paid. So if in a year of 1000 cars there is 1 claim, the ratio of the claim is 0.1%.

2. Acquisition fee

Biaya Akusisi
The cost of acquisition is the cost to pay the marketing fee. This fee also includes fees on behalf of intermediaries such as banks, insurance agents, insurance brokers, leasing, and so forth.

3. Overhead

That includes overhead costs for paying the operational costs of the insurance company. Such as employee salary, building rental fee, maintenance fee, electricity fee, pay ads, etc.

4. Profit Margin

Profit Margin
Surely no companies are willing to lose. Therefore, this component is mandatory and must be taken into account by the insurance company in setting the amount of premium. If not then the insurance company is certainly difficult to profit from the products that are marketed.

From the four components of the fee, it is created a premium that must be paid by the customer. Logically, all such costs will be used by the insurance company. So how will they return the money if there is no claim? Of course with the term and condition earlier.

Usually the main requirement is to never make a claim in the period of running insurance. Rather difficult isn't it? Because every day we use vehicles, every day there is a risk to our vehicles.

If it is true there is no claim and is refunded, not necessarily the insurer will refund the customer 100%. Surely later there will be a chunk of this fee and that's the edges of your funds just back around 50% only. It can also be refunded percent and the customer must continue the insurance the following year. The funds will be refunded in the form of insurance fee in the following year.

Actually, in general if further thought these conditions are reasonable applied. The insurer certainly does not want to lose its credibility and strive to keep its promise. Therefore, a condition that does not burden the insurer to refund the customer. The insurer seeks to keep its promise in the beginning but on the other hand will think of seeking maximum profit.

For example, if a return of insurance fund is returned in the following year, it means that the insurance has time to play the funds on another investment until it reaches a certain profit. Additionally the more years the value of money will be decreased. So in the following years the value of the initial insurance that we pay is not felt heavily by the insurance. Compared to the premium value that each year will also rise. So the deduction of funds made by the insurance can be only a few percent.

One more thing, generally the premium size in the insurance form is much more expensive, can reach a difference of about 10%-15% with other types of insurance. Thus, even if it is partially restored, surely the insurance does not feel lost. But conversely, as a customer of course we will feel lost. Because the slogan specified at the beginning was not entirely true.

Don't be easy to be tempted!

Looking at some of the above explanation, it is quite clear that preferably in determining the car insurance that will be used do not origin tempted by their advertisements stating the money can be refunded if there is no claim. If you want to choose the right car insurance, you should consider the risk to your vehicle, easy to make claims, reasonable premium costs and the credibility of the car insurance company. Immerse in the mind, that buying protection is nothing free. There must still be a fee you should spend. It is only, with intelligent thinking, that these costs can be reduced to a minimum. Happy Hunting car Insurance products!


  1. We always take care of the cars and read the references of companies that insure cars

  2. Ohhh muy buena información
    un bes💕

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