5 Types of Motor Vehicle Insurance Coverage – Insurance is one of the protection products currently needed by private vehicles. This is inseparable from the many types of bad possibilities that occur in the middle of the trip.
To anticipate costs that arise as a result of this possibility, insurance comes as a financial savior. With insurance, some of the costs that arise are borne by the insurance company.
The types of motor vehicle insurance coverage that are generally provided by companies are as follows.
Insurance is one of the protection products currently needed by private vehicles. This is inseparable from the many types of bad possibilities that occur in the middle of the trip.
To anticipate costs that arise as a result of this possibility, insurance comes as a financial savior. With insurance, some of the costs that arise are borne by the insurance company.
The types of motor vehicle insurance coverage that are generally provided by companies are as follows.
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5 Types of Motor Vehicle Insurance Coverage
1. Guarantee A: Total or partial loss
This guarantee is given to the insured who insures the car. Compensation will be given for all types of costs that cause losses to the insured. In addition, damage and loss is also the responsibility of the insurance company concerned.
The amount of coverage given does not exceed the value of the car insured. If the price of the car at that time was Rp. 300 million, then the sum insured provided by the company for a total loss of less than Rp. 300 million.
2. Collateral B: Loss for a maximum of one time
The company provides compensation for repair costs that may arise due to damage or accidents that occur. However, the loss incurred is only one incident, no more.
That means if the car in question wants to submit a claim for a total loss, the claim will be automatically rejected. An exception is if the insured cars are different, but still in the same company.
3. Guarantee C: Losses due to third party claims
Insurance companies are willing to pay compensation for damages or losses suffered by the policy. This includes if the loss arises as a result of a third party claim. For example, when the insured accidentally crashes into another car, the cost of compensation demanded by the other driver becomes the responsibility of the insurance company.
If the damage is more than 75% or the car is declared lost and not found within a maximum period of 60 days, then this loss is included in the category of total loss. The insurance company will replace this loss as recorded in the policy terms.
4. Guarantee D: Total loss
Overall loss or damage that causes the motorized vehicle to not be used again is also the responsibility of the insurance company. This is stated in the policy policy when registering a vehicle in an insurance product.
As for losses that are not included in the category of total loss, the cost of compensation will follow other types of guarantees.
5. Guarantee E: Coverage is for third parties only
The last guarantee is the type that is only given to third parties. In this case, the sum insured is given if a third party demands compensation from the insured whose vehicle is included in the insurance policy.
The amount of compensation costs is given in accordance with the policy of the insurance company concerned. However, it should be noted that the cost of compensation will not be the same as the amount of repair costs for damage suffered by third parties.
Things to Look For When Submitting a Claim
1. Not an element of intent
If it is proven that the customer intentionally crashes the car in order to get compensation from the insurance company, the claim will be rejected. For that, don’t make a far-fetched accident so that the costs that have been paid from personal pockets are reimbursed by the company.
2. Not a form of violation
Submission of claims is accepted if the accident arises due to a literal incident that occurred on the trip. If the accident is caused by personal actions, for example violating traffic signs or parking the vehicle carelessly, there is a potential for the insurance claim to be rejected immediately.
3. Force the vehicle to be driven
Compensation costs are not forced to be reimbursed if the vehicle is forced to be driven when the condition is not roadworthy. In the sense that the condition of the engine is worn out or the spare parts are damaged. It would be better to take the vehicle to a partner repair shop to get an intense repair if the condition is not suitable for traveling.
4. Being driven by someone who doesn’t have a driver’s license
Anyone who drives your personal vehicle, make sure the person already has a SIM. If a bad event occurs during a trip, such as an accident, the insurance company is willing to cover the costs of compensation that arise. But if the driver doesn’t have a driver’s license, don’t be disappointed if the claim for damages is rejected outright.
5. The driver is under the influence of liquor
Consuming alcoholic beverages, drugs or other addictive substances before driving can endanger the driver’s safety. If an accident occurs as a result of this, the costs are not the responsibility of the insurance company.
Avoid Possible Claims Rejected
Although insurance provides guarantees in the form of compensation, not all claims are acceptable. There are some things that are included in the exception. It is better to pay attention to these several things in order to avoid the possibility of a claim rejection at a later date.
