2 Types of Car Insurance and Its Benefits You Should Know

The car that you have is certainly not just a vehicle, but the most reliable friend when you travel. This is why, you have to protect this beloved car with all your heart, so that if something unexpected happens, the car can still be saved, or at least you can avoid big financial losses. In this case, getting to know the various types of car insurance is important so that you can provide the best protection for your vehicle.

Also Read: Gasoline Officially Rises, Protect Your Car with MAGI to Keep Your Finances Safe!

Types of Car Insurance

In general, the types of car insurance are divided into two major types, namely the Comprehensive type, and the type of Total Loss Only or known as TLO. However, in several other vehicle insurance products, protection for the vehicle that you have can also be divided into two different types.

Each explanation will be mentioned in the brief points below.

1. Comprehensive Insurance

Comprehensive Insurance is a type of insurance that will pay claims for all types of damage. So you will get protection from all types of vehicle damage from minor damage to heavy damage, to even vehicle loss.

This type of insurance usually has a higher price than Total Loss Only insurance because there is a difference in the protection provided between the two.

Furthermore, this insurance also covers a wider range of coverage, and the benefits provided will be more. In addition to coverage due to accident or loss, comprehensive insurance can be received with the following additional premiums:

• Covers the expansion of floods, windstorms, and water damage
• Earthquake expansion guarantee
• Guaranteed expansion of riots, attacks, and civil commotion
• Guarantee the expansion of terrorism
• Third-party loss expansion guarantee
• Coverage for the expansion of personal accidents involving passengers or drivers
• Guarantee the expansion of legal responsibility for passengers

You can easily ask for complete information regarding this expansion insurance from the company where you bought the car or vehicle insurance product.

2. Total Loss Only (TLO) Insurance

The second type is Total Loss Only Insurance. This type of car insurance can be filed for loss or total loss due to an accident. Total loss due to loss, namely loss caused by theft by unknown persons and theft due to violence. Total loss due to accidents if the repair costs have reached 75%.

Benefits of Having Car Insurance

Similar to many other types of insurance that you may have read before, car insurance or vehicle insurance also has considerable benefits in terms of protecting against financial losses that may occur. Some of the benefits include the following.

1. Provides a sense of calm and security

By having the right type of car insurance, you will be calm and more at ease with all the risks that arise if you own and drive your favorite car. Various risks will be borne, preventing you from suffering big financial losses. At the same time, this can also be a preventive measure or countermeasure when something unexpected happens.

2. Helping Financial Management

Why can it help manage finances? Because of regular payments on the insurance used, you will be more careful and efficient in using money. The same thing happens when unwanted things happen. You can reduce unexpected expenses that may arise, and the value is not small.

3. Provide Risk Guarantee on Losses

Having a guarantee against the risk of loss is the next benefit of owning car insurance. This will be felt when something unexpected happens while you are driving your car. Losses that arise will be borne and assisted by the insurance company that you have, so the burden that arises will be significantly reduced.

Also Read: 3 Fun Activities For Automotive Enthusiast As A Type of Self Reward

In the end, choosing the right type of car insurance will be the key to how you prepare yourself for unwanted situations in the future. With the right product, losses that arise can be reduced in value, keeping financial conditions in check when they occur.

For the right product and type of car insurance, you can use SmartDrive Insurance provided by PT Mandiri AXA General Insurance ("MAGI"). This insurance can help you protect the car you care about from the risks of breaking down, scratches, dents, lost keys, theft, and unwanted incidents on the streets. Free your thoughts and worries with car insurance from MAGI and enjoy the #AsikTanpaPanik journey right now with this insurance!

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