How Much Car Insurance Do I Need?
Many people may ask “How much car insurance do I need?” Many people are also afraid to follow the insurance because they get information that is not appropriate. People’s doubts about car insurance are not only due to the lack of correct information about the functions and benefits of car insurance, but also because they are still confused about the cost of premiums.
Actually, do not need to be confused about insurance premiums because the amount of car insurance premium rate is already set according to applicable law. So you do not have to worry that you will be charged extra when paying your vehicle insurance premium.
But before calculating the premium cost, it’s good to see the types of vehicle insurance available. Currently, there are Total Lost Only and Comprehensive car insurance.
Types of car insurance
Everything is intended to protect from loss, but the coverage of protection between the two insurance is different. You can freely choose the vehicle insurance by adjusting the ability and needs.
- Car insurance TLO
This type of insurance TLO just give a replacement in case the vehicle suffered severe damage above 70 percent, or it cannot be repaired again. This also includes a lost vehicle stolen. If you buy a car on credit, you will usually already be a customer of a car insurance. The amount of premium you have to pay depends on the length of the credit term. Premiums will be cheaper if your loan tenure is shorter.
In contrast to TLO, all risk insurance has a wider coverage, both minor and major damage. Minor damage such as abrasions caused by being grazed or cracked car lights can be protected by this insurance. Of course, the premium cost is higher than the TLO insurance. To be remembered, insurance companies are required to charge an additional premium, if the age of the vehicle is above five years with a minimum magnitude of five percent.
Calculation of vehicle insurance premiums
The amount of premium depends on the area where you live. Each region has different characteristics. For those of you who live in urban areas, prone to crime, or areas that have extreme weather will be subject to a more expensive premium.
In addition to territory, In addition to area considerations, the selling price of the vehicle is also a factor in the amount of vehicle insurance. The more expensive the vehicle price, the smaller the percentage of the premium.
Different car insurance may have variations of policy. In general, how to calculate the TLO car insurance premium and comprehensive based on insurance rate multiplied by the price of the car. How much the insurance rate varies between one car insurance with another. Type, year, and plate may also affect the amount of premium to be paid. There are also insurance that consider the location, age of the driver, the type of guarantee, credit track record, until the age of the driver.
For the TLO insurance premium, the car insurance rate averages 0.8-1%. Meanwhile, the all-risk car insurance rate averaged 2.5-3.5%. Certain insurance even provides a 1.5% insurance rate for valuable cars above $ 30,000. Now you can count “How much car insurance do I need?”