Don't Pick the Wrong Path! How to Select the Appropriate Auto Insurance

 

The Covid-19 pandemic and the still-recovering economy, which is being overshadowed by concerns about the 2023 worldwide recession, have prevented the Indonesian people from purchasing new vehicles. People that need cars are more likely to choose used vehicles realistically.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), which reveals that total sales of used cars in Indonesia reached 3.2 million units in 2018, the market has grown since 2018.

In reality, sales of secondhand automobiles have reportedly surged throughout the pandemic and have increased by as much as 8%, according to OLX Autos data up to 2022.

In this context, PT Asuransi Allianz Utama Indonesia (Allianz Utama) emphasized the value of having vehicle protection, which includes used automobiles, to ensure that driving used cars stays convenient and secure.

Alwin Jaslim, Head of Personal Lines & Product Development at Allianz Utama Indonesia, stated in a written statement that prospective used automobile buyers "need to be aware of the numerous risks of damage that may occur, both in the long and short term."

Alwin added that even though he had purchased a good used car, risks could arise at any point when traveling.

"Starting with the chance that a car would break down, accidents and crimes can happen when traveling. Therefore, in order to prepare for these negative outcomes, used vehicles also require insurance "explained he.

Almost all insurance firms now offer coverage for vehicles. Naturally, it becomes harder to choose the automobile insurance package that best meets your needs the more options there are.

Here are some recommendations for selecting the best auto insurance to avoid making a mistake:

1. Learn about the insurance provider.

Only insurance providers with an OJK (Financial Services Authority) license are permitted to sell to the general public. Due to this, make sure that anybody who uses a car only choose insurance that has been approved by the OJK. Additionally, look into the company's reputation by looking at its past performance and annual report.

2. Have clear knowledge of the many types of auto insurance.

There are two types of coverage available through auto insurance: comprehensive and total loss only (TLO). A comprehensive automobile insurance policy offers protection from all types of damage, including dents, scratches, broken glass, and theft-related losses. Of course, the nominal premium paid is more expensive given the level of insurance offered.

Comparatively speaking, TLO auto insurance has a lower premium than comprehensive insurance. TLO vehicle insurance, however, only offers defense against significant loss and damage.

The automobile in question has suffered severe damage as a result of an accident, and repairs will cost more than $75,000. Additionally, insurance firms may offer services for coverage expansion, such as risks related to riots, natural catastrophes like floods and earthquakes, and other hazards.

3. Examining various insurance options

Each type of auto insurance provides a different level of protection. Compare the insurance for each vehicle with a number of crucial factors, including partner repair shops, claim simplicity, and service features, to choose the one that best meets your needs.

4. Modify the needs and spending plan

The decision to get vehicle insurance must be made with the budget's availability in mind, much like the decision to purchase a used automobile. Avoid forcing yourself to get expensive auto insurance. But don't let the promise of low premiums sway you. The more exceptions that apply to the automobile insurance plan, the lower the premium typically is.

"Allianz Utama has produced a number of ongoing developments as a result of realizing that the public needs protection for their vehicles. By creating a product portfolio is one of them. We are taking this action to offer more Indonesians insurance cover "Alwin came to an end.