Having a private vehicle is certainly everyone’s dream, but owning a private vehicle but not having vehicle insurance let alone living in a capital city with a substantial risk of accidents, vehicle insurance is an important thing, besides having vehicle insurance will also make vehicle owners calm down.
As long as we still have a monthly installment of vehicle insurance becomes very important, because the risk of us buying a vehicle in installments becomes greater.
Reduce the financial impact of risks
When we talk insurance we have to pull back about our vehicle installment credit. Risk will always be present in all areas of life. Insurance is here to reduce the financial impact of risks that can occur at any time.
All types of car loans can quickly increase your credit score as a customer and your digital credibility has been recorded when you make your recorded credit payments.
You can make car loan and credit card payments in the Giant application, because only in the Giant your credit score can be known every time you make payments every month and the more you trade in the Giant, the value of your Giant score will also increase here is one of the benefits if you make credit payments at Giants.
Insurance is an official agreement that guarantees that the insurance company will protect you from risk and you will not bear losses that can occur alone.
Insurance Premium Calculation
There are costs that must be paid if you want to transfer the risk of loss of the vehicle to the insurance. These costs are known as insurance premiums.
Each insurance company has its own rules in determining the amount of premiums. Even so, vehicle owners certainly crave a premium but at the same time the protection is complete. To be sure, do not be tempted directly with cheap premiums but ignore the quality of service.
Then, what is the basis for insurance companies to determine the amount of premiums, for example in the case of Adi, who has a business of this transport fleet. Basically, the premium is calculated from several factors below:
Type of guarantee (all riks or TLO)
The all-risk guarantee premium is certainly higher than TLO. The more so if all risk is added to the expansion of collateral which in turn will increase the amount of the premium.
In general, every insurance company offers the same two types of protection, namely Comprehensive (All Risk) and Total Loss Only (TLO). Comprehensive (All Risk) is compensated by insurance companies for the loss of part or all of the cars due to falling objects, fires, misdeeds, theft, seizure, collision, collision or other traffic accidents.
Total Loss Only (TLO) is compensation that the company will ONLY provide if the car is damaged or above 75%. In addition to the two types above, you also need to know the ‘expansion’. Expansion is the addition of protection coverage. Expansion includes:
• tsunami and earthquake
• terrorism and sabotage
Is this extension of protection necessary / not? It depends. For example, if you live in Jakarta, you MUST take the expansion of floods and riots because these 2 events occur quite frequently here. If you do not take the expansion and your car is ‘off the engine’ due to flooding, the insurance will NOT compensate. Now it is up to you to decide!
- Transportation type
The type of vehicle is a factor in calculating the premium, which is the value of the percentage of the price of new vehicles and the price of vehicles on the market if their status is secondhand. The more expensive the price of the vehicle, the smaller the percentage. Even so, vehicles equipped with safety features could be considered a premium discount.
- The age of the driver
Drivers in the age range below 30 years and over 60 years may be subject to high premiums. The reason, accident statistics show that the age mentioned above is at high risk of having an accident. Thus, the age of the driver Adi recruited was also considered by the insurance.
- Credit track record
A good track record at banks or other financial institutions can be the basis for getting premium relief. And vice versa, if previously had problems with credit history can be burdensome premiums. Fortunately, Adi has not had a problem with credit at the bank so that it could be an additional point in the eyes of the insurance.
- Driving history
The insurer has eyes and ears in the police. That is, they can know your driving history. If you often get a speeding ticket, have had an accident, and so forth, then the insurance rate you have a high risk, which in turn costs them more expensive premiums. This should be Adi’s concern in recruiting his fleet driver.
Your domicile also affects the amount of the premium. Because the insurance company has a record of locations that are considered prone to crime such as vehicle theft. In addition, the insurance company will also survey your home whether it has a warranty or not.
- Average mileage
The more often the car is used, the higher the risk. That way, vehicle mileage will be a factor that affects the amount of the premium. Even so, this factor does not apply to new vehicles.
Basically, the insurance together offers the protection of loss protection and the worst risk at a later date on the vehicle. Even so, making choices on TLO and All Risk types of insurance is very dependent on the needs, economic and functional aspects.
Determining the best insurance choice is yours
The final decision in determining the best insurance choice is yours as the owner of the vehicle. Before taking out insurance products, it is better to measure the risk picture of the vehicle. For example, if a vehicle is used as daily mobility then the risk of experiencing disaster is higher.
In addition to having to pay car loan installments every month, but if we have vehicle insurance, the burden of having a private vehicle will be easier and do not forget to always make credit payments in the Giant application.