Now you have seen the type of insurance and how to calculate the premium. But should you choose which car insurance?
There are many car insurance companies available. If you are confused in choosing, you should first examine, note some of the following.
What is car insurance?
Understanding Vehicle insurance is a type of insurance that is devoted to vehicles where the risk that may occur in the vehicle is transferred to the company’s subscription risk. By choosing a vehicle insurance thing to consider is the services (service) offered and the cost or premium expenses to be paid. The policy covers protection against cars and engine protection.
Why do we need vehicle insurance?
Many of us assume that car insurance or car insurance is not very important to have because it has assumed that the risk of accidents can be avoided by driving the car carefully and always focused. Furthermore, the cost of vehicle insurance requires us to pay a certain amount of money or insurance premium that is not cheap.
But you know that we should be awake and always ready to face the risk that the actual risk of accidents can happen at any time and it may happen to someone because sometimes people who are not careful about driving and accidentally damage others. As a way of dealing with the risk of accidents that may occur, it is as expected. The solution is to buy the best car insurance that suits your needs.
Buy the best vehicle insurance policy. Accepting all the risks that may arise is a very good step to avoid total loss due to accidents, third party loss due to accidents or loss of car / motor can be transferred to the insurance company.
What is the best car insurance we should choose?
What is the premium cost per year you must spend and what coverage can you get?
Benefits of car insurance
Vehicle insurance is typically aimed at protecting against unforeseen threats of potential hazards such as collisions, theft of vehicles or theft of vehicles. By protecting the vehicle with the best car insurance, we can drive the vehicle with a sense of calm and safe for anyone traveling. Because the risk that already occurs is covered by the best protection company you choose.
There are 2 types of car insurance, that are:
All risk coverage guarantee
Warranties that cover damage due to major and minor accidents or loss of additional car accessories by forced or damaged or lost vehicle. Car and motor insurance usually provides this type of all risk insurance. Generally, this type of protection also provides many partner workshops, tow services and others.
Total loss only (TLO)
Car or motor insurance that guarantees loss due to accidents with a minimum requirement of 75% of the insurance sum or lost vehicle.
In addition to the mentioned basic safeguards, car insurance or car insurance also provides protection extensions as legal liability to third parties and passengers, protection when it is raid (Strike, Riot and Civil Commotion), natural disasters, etc.,
It is now very easy for you to get the best car insurance that is attractive and suited to your needs, so many insurance companies in Indonesia compete strictly by offering interesting programs and the best car insurance. Today, many who have realised the importance of insurance, this shows that the public’s awareness of protecting their property from potential hazards that will hurt or damage is getting better. Meanwhile, insurance companies in the country are now also competing to provide the best service to society, both in terms of the requirements for the problem.
Tips on choosing car insurance
Choosing a car insurance is not easy. Particularly in the midst of intense competition today. Almost all insurance companies have car insurance products. Keeping potential customers choose which one is worth taking. For the below, we present some criteria for not choosing errors:
- Expected customers should not be fixed at cheap premium prices. Because in today’s competition many insurance companies are priced in price and offer cheap prize prices. Although not necessary, it is a guarantee of service.
- See the insurance package offered. For example, the extent of the guarantee to how much. Therefore, the scope of this warranty should be tailored to the wishes and abilities of potential customers.
- See also the network of affected insurance companies. For example, how many have a branch office or how many have a partner workshop, so it’s not a long time waiting to repair the vehicle or report the missing vehicle.
- May be asked in advance for the convenience, facilities or value creation that can be obtained from the purchase of the policy in the company. For example, there is a cable car, replacement car or hotline service, mechanic, ambulance car and so on. And no less important is easy to make changes and easy to ask.
- It should also be considered as a bonus by the insurance company. Do not leave it a requirement, no partner’s workshop. Because many insurance companies claim they are the best. Although the economic condition is very serious.
In addition to the above, there are still some factors that should be considered in the process of selecting an insurance company that is included in the selection of a product. Things to keep in mind that when choosing a private insurance company, it should generally be considered as three factors.
First, the economic strength (security). Secondly, services (service). And third, cost or expense. The financial strength of the insurance applies to the company’s financial ability to fullfil the promises if circumstances so require. This is important to know, because not a few insurance companies that look beyond the classy. For example, the building is terraced, the vehicle is quite good. However, when there is a claim from the customer, the company is unable to pay.
By assessing these economic strengths, there are several goals that need attention.
a. Assets and liabilities. This can be seen from the financial balance published in the newspaper. See also if the investment is invested in current or long-term. In terms of liability (payment ability) it will be seen in the balance, how the debt will be reasuradur, how he meets the obligation to pay claims and so on.
Indicators for debt include net equity (net capital) divided by “net premium” (net premium) of at least 50%. Equity divided by `gross premium ‘(gross premium) of at least 20%. Solvency level limit, visible from equity, is divided with a minimum net premium of 10% and investment fund divided by 100% minimum engineering reserves.
b. Underwriting Policy. In the balance sheet and the annual report, it will be seen that the insurance is still profitable or experiencing profit growth. This means that the underwriting policy is good.
c. Underwriters him. The insurance has qualified personnel or not. It is known from the company profile which includes its guarantors.
Services (service) are a reflection of whether or not human resources in the company are eligible. Furthermore, the insurance company sells the services, so the excellent service is the key. For example, to what extent the speed of service both in terms of issuing a policy, not least in the payment of compensation or claims.
In addition, the actual service can be followed by the customer. Is this insurance company really providing the best service to its customers.
In this context, it should also be asked whether the insurance company is reinsured for reinsurance if security is first class. This can be seen from the annual report. This is important to note because if the company is not backed up by reinsurance, it is likely that the company is wondering to receive prizes.
The cost problem is how much the insurance company costs in its business. If the cost is greater than the revenue, it is clear that the company is ineffective. If it is not effective, the edges will lose. And if it constantly loses, it would not be healthy.
Compare the insurance company rate with other insurance. Which is the quality is very good.
Today, the government is definitely one of the health insurance standards (not the only ones) that is through the Risk Base Capital (RBC) mechanism. If the RBC numbers are large, this means that the company is rated in good condition. But we can not get stuck with RBC numbers. Because there can also be big companies that make a huge expansion like opening many departments, then the number of RBC will be small.
Conversely, it is a small insurance company, but never expansion, then the RBC numbers can be much bigger.
So, the RBC figure can not be the only goal if the insurance company is healthy or not.
In this case it is also worth noting that the company’s results are the last two or three years. How much profits are earned each year, how much of the gross premium they receive each year, how much capital and asset increases each year.