Transportation is important for those of you who have to move to a place far from home. Especially the means of transportation are needed for people who live in big cities, such as in Jakarta. Although public transportation in City is getting better, owning a private vehicle is something that is also needed for ease of activity. When you have a vehicle, you will definitely keep your vehicle in good condition and fit for use. One form of protection that you can do is through motor vehicle insurance. This insurance product covers any loss or damage to your motorcycle or car. Is this insurance important? Yes! This is the reason.
Reasons for the Importance of Vehicle Insurance
1. Protect against the risk of vehicle theft
The purchase price of a motorized vehicle is not cheap, so it is certain that you will really keep your vehicle safe and remain yours. But disaster can happen to anyone, anytime, anywhere. Even though you have guarded it in such a way, the risk of vehicle theft is always there. So, what you can do to protect your vehicle from the risk of theft is vehicle insurance. If your vehicle is stolen, the insurance company will provide you with an amount of funds in accordance with the provisions of the insurance company.
2. Protects from the risk of vehicle damage
Sometimes, even though you have been very careful when driving your vehicle, there can still be accidents, be they minor or major accidents. No matter how small the impact of the accident, the cost of making it back to normal requires a lot of money. However, with vehicle insurance, these costs will be cheaper than the market price.
3. Helping You Responsible To Third Parties
When there is an accident involving a third party, usually you will have difficulty dealing with it and need a large amount of money to give responsibility for it. You will need both legal and professional fees. If you have motor vehicle insurance, the insurer will take over responsibility for you or your driver in the event of an accident. So you don’t have to bother and pay dearly to be responsible.
How Much is the Premium Fee?You can feel all the benefits of motor vehicle insurance as long as you are willing to pay the premiums to the insurance company. The amount of premium that you pay is based on several considerations, namely:
1. Types and prices of vehicles
The first thing to consider before determining the cost of a vehicle insurance premium is the type of your vehicle. Types of vehicles are generally divided into 3 types, namely non-bus and non-truck vehicles, buses and trucks, and two-wheeled vehicles. This distribution based on vehicle type applies to Total Loss Only (TLO) and All risk insurance products.
After completing categorizing the type of vehicle, the price of the vehicle is also a consideration before finally the cost of your insurance premium is determined. Vehicle prices are also categorized into several categories. The more expensive your vehicle is, the more expensive the premium you will have to pay.
2. Vehicle Age
The last thing to consider in determining the premium price is the age of your vehicle when you enter the insurance. The insurance facilities and rules also vary depending on each insurance company. The older your vehicle is, usually the premium price will be higher. Such as the rules set by the Financial Services Authority, which is an additional 5% per year for every vehicle that is over 5 years old and only applies to the All Risk type of insurance.