Whats car insurance quote

Sometimes we do not realize how important car insurance so that we often overlook any insurance products offered by insurance companies. In this post I will share importance whats car insurance quote, but NOT life insurance.

When we mention the word insurance, The first question that I think is whats car insurance quote? Someone called an agent, wearing a tie, and then went to every house or standing offers in the navel insurance shopping? first may be true, and it usually tends to be done by a life insurance agent, not disrespect life insurance agent, it is only to further distinguish between insurance than life insurance.

I was never worked on one of the insurance company. On this occasion, I just want to share knowledge about insurance, as far as I know, because I am also not a specialist in the field of insurance. I will discuss motor vehicle insurance as our world is related to the automotive blog.

When talking about insurance, the first will be discussed is a premium, what is the premium?
Briefly Premiums are a number of value (money) paid to the insurance company as a substitute for the services performed by the company within a period of time ( e.g., 1 year or 2 years depending on the negotiation and existing insurance products ).

The premium insurance amount
The minimum and maximum amount of Indonesian insurance rates are set by the Indonesian Insurance Council.
The numbers of premium payments also affect the price of the vehicle. The new vehicle is more expensive premiums and easier to calculate. For the used car amount of the premium payment is determined based on market prices.

The insurance policy
Policy is a certificate that is proof that the car owner and the insurance company has agreed to perform the obligations in the period. Both policies are owned by both parties.

Insured and the Insurer
Insured is the owner of the vehicle and the policy holder pays a premium, while the Insurer is an insurance company that issued the policy and the premium receiver.

There are 2 types of insurance losses applicable to the motor vehicle insurance, which guarantees the All Risk / Comprehensive (AR) and Total Loss Only (TLO). All Risk / Comprehensive (AR) guaranteeing all losses owner of the vehicle, except those mentioned in the policy. Total Loss Only (TLO) is insurance that guarantees if the damage suffered by the vehicle up to 75 % or missing vehicle.

Example calculation of car and motorcycle insurance
1. Cars (e.g. Honda Jazz )
Type / Brand Vehicle: Honda Jazz i - DSI CVT on the market in 2005 for IDR 100.000.000
Rate / rates are valid for All Risk conditions: 2 %
So the premium to be paid is IDR 100.000.000x 2 % = IDR 2.000.000/year.
The warranty period of 1 year (i.e. August 20, 2013 - August 20, 2014). So the lads vehicle fully guaranteed for 1 year and covered by insurance
For the same calculation TLO only charge is usually lower than the All Risk, e.g. only 1 %

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2. Motorbike
Type / Brand Motorbike: Kawasaki Z250 IDR 48.500.000 (price in 2013)
Rate / rates are valid for conditions TLO: 1 %
So the premium to be paid is 48.5 million x 1 % = IDR 485.000/year.

As far as I know, All Risk insurance is only valid for motors up to 250cc motorcycle with a minimum price of IDR 50.000.000 or more.

Thus my short whats car insurance quote, if this article useful for you, please also share to other friends.