Monday, July 22, 2019

Things to note in car insurance All Risk

There are 2 types of car insurance products that need to be understood by the customer, namely all risk car insurance and Total Loss Only (TLO). The difference lies in the protection provided, where all risk insurance provides comprehensive protection against all vehicle risks (unless there is an exception). This is what makes people prefer all risk products for vehicle insurance in particular that is still new (vehicle age under 5 years), although in a premium, the cost of all risk is far above the insurance TLO. While TLO insurance itself only protects the vehicle in case of total damage (cost more than 75%) or loss.
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Given the relatively large cost, so before taking this all risk product, prospective customers should actually understand the product so as not to be disappointed or misperception that could cause losses in the future.

Some of the following things need to be considered before taking an all risk insurance product, given the frequent misunderstand that leads to disappointment:

Adjusting to needs, does it take All risk or just TLO?

Car protection needs can be seen from crime rates or other levels of risk such as the traffic density where you live or travel often with the car. If you have no definite data, you can check on the Internet or other media. If the living environment is not too dense and minimal risk of accidents either mild or heavy then the TLO products match you take.

However if living in an area that traffic is dense, then the vehicle risk of accidents occur, minimal scratches are quite large. One stroke alone takes at least 500 thousand-1 million if it goes to body painting. If this condition is the case, then the ALL risk product suits you take. Another example is that housing is often affected by flooding, then all risk insurance is selected must have an expansion of the guarantee against flooding.

Before filing all risk insurance for your car, do the following first:
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1. Check your budget, is it possible to charge insurance premium ALL risk?

Because it protects all risks, the premium cost for insurance type all risk is more expensive than car insurance type TLO. Premium Payment car is usually once a year, for new car output with a price of 200 millions usually need a premium of 3 million per year. Well, check the budget and adjust it with financial budget. Vehicle protection includes important conditions because moving assets are usually risk-prone. So, if you are ready to buy a car, you must prepare more funds to buy all risk insurance.

2. Compare products and choose the best and reliable

The amount of premium costs is indeed one consideration, but it is worth considering also the benefits gained and the reputation of the insurance company that you will take. This reputation is important because it will affect the claims process later. It could be a little expensive premium but the ease of claim process and network of car repair shop is much more. This of course becomes an important consideration in addition to the premium costs.

With many comparing products and seeing the reputation of the airline's insurance will be easier to get the right product at an insurance company that has a good reputation. Moreover, nowadays comparing products and reputation can be easily done through Internet network.

3. Pay attention to company reputation, customer testimonials to avoid disappointment

One way to see the company's reputation is to pay attention to the testimonials of customers who have used the insurance product, especially the problem of claims. Car insurance is identical to the claim process. If the claim is easy, the network is widespread, customers are satisfied then the testimonials will usually also be good. This is what encourages the company to get various awards and plans but surely its reputation will also rise.

In addition to paying attention to some important things before taking the insurance product all risk above, another important thing that is Peruvian understood is the mechanism of claim. In general, the mechanism of claim is relatively easy, if there is a risk of customer staying in call centre or sales contact you and submit a plan for the claim process. Just follow the instructions given.

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Avoid this if you do not want All Risk car insurance denied

For the sake of smoothness and avoiding rejected claims, pay attention to and understand some factors causing the following car insurance claims rejected:

1. Driver does not have a SIM

SIM is the case for drivers. If you don't have a SIM it means the driver is not yet worth driving and it's not automatic to get insurance protection. Incidents are often happening insured car insuring cars for automobile insurance all risk, and apparently the car is used by his child under 17 years, and experiencing the risk of accidents.

For such cases, the most fundamental thing can not be fulfilled ie the driver does not have a SIM will make the car insurance claim is rejected.

2. The SIM has expired

Don't have a SIM and the expired SIM is a three-money alias of the same. Claims with such conditions will also be rejected because according to the traffic regulations each vehicle driver must have a driving licence (SIM), each conducting the insured claim must fill the claim form about the chronological incident.

3. Late at the claim report

One of the bad habits of a vehicle owner is to delay a claim if it encounters a light vehicle risk such as scratch, beret or the other. After wounds on the car body began a lot of new claims. Claims like these are at risk of being rejected due to claim reporting deadline of maximum 5 days.

Generally, as contained in PSAKBI (the standard Motor vehicle insurance policy) any damage in the nature of the car, the policyholders have the obligation to report to the insurance maximum 5 days since the occurrence of damage .

4. Providing false information

For large-value claims, the insurer has its own investigation. Sometimes, in the event of a distorted condition, a potential claim is denied to false information. For example, customers have the risk of driving a heavy accident with damage above 75%, while the ride is his child who does not have a driver's license. In order for the claim to be entered, the vehicle owner created a police report that he was driving during an accident.

When the investigation of the insurance company apparently found the fact that the rider is his child who does not have a driver's license. This condition results in a claim being rejected and damaging your own reputation.

5. Loss of fraud, evasion, anaesthesia, and hypnotist

Cases of loss such as this usually happens in the case of a car borrow by a friend himself and eventually brought to a blur, or some of which happened in the case of car rental but it was brought blurred. If the case is reported to the insurance that the car is carried on the run away by his friend or renter, based on PSAKBI mention that the vehicle in the insured is lost in the same because it is closed by the nearest person or rental carried blurred then claims Car insurance will be rejected, therefore after insuring his car to re-read the writing, policy clauses, and PSAKBI.

6. Goods damaged due to being transported with a vehicle insured not in insurance protection

This risk occurs a lot in the entrepreneurs distribution of goods between cities. For example, you buy a pickup car for a fleet to send merchandise to customers and join the insurance All risk program. In the process of delivery of goods turns out to have a traffic accident that makes pickup cars and transported goods severely damaged. In such cases, the pickup car can claim losses to the insurance, but the goods are transported not participating in the protection.

7. Automobile body damage due to chemical fluid

Chemical fluids include substances that are not protected if they cause damage to the car body. For example, you walk along the toll road with vehicles transporting chemicals. It turned out that the chemicals transported by the vehicle were spilled due to an accident. Chemicals regarding your vehicle and cause damage to the body of the car.

Cases like this can not be claimed because according to the Standard Motor Vehicle insurance Policy (PSAKBI) damage that can be on the cover of insurance is a total or partial damage caused by accident, malicious action, falling objects and Other traffic accidents.

Understand the insurance product terms and benefits

All Risk car insurance provides total protection on vehicles from all sorts of small vehicle damage including vehicle body, broken rear light, vehicle being dragged, stoplamp rupture, major damage caused by natural disasters such as flooding, , terrorism to lost vehicles. This product is very beneficial even with a slightly more expensive priemi. However, it is also necessary to consider some of the above before taking this product to fit the needs and avoid the risk of claims on the decline.


  1. Gracias por tus recomendaciones

  2. Fortunately, I haven't any car accidence :)

  3. sadly, i don't have a car yet hehe. maybe soon i will take insurance for my car

  4. Y yo que no me entero de nada con los carros, uff, gracias por las recomendaciones.

  5. Estupendos post los que haces para que sepamos un poquito mas lo que nos están vendiendo. Muchas gracias :D

  6. Un post muy interesante! Gracias por la información! Feliz fin de semana! ♡♡♡

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