Car Insurance All Risk: Costs, Advantages & How to Claim
Having car insurance seems to be a mandatory requirement, as unexpected events can occur at any time. Car insurance products consist of Total Loss Only and All Risk, here is an explanation about All Risk car insurance starting from costs, advantages, to how to claim it!
Understanding All Risk Car Insurance
What is All Risk insurance? Check out the explanation of costs, advantages, and how to claim it below.
Definition
As the name suggests, for types of car insurance, all risk means that the owner will receive comprehensive protection for all risks. Thus, the insurance party guarantees claims for all damages from minor damages such as dents or scratches, to major damages such as vehicle theft or accidents.
In addition, this type of insurance can also provide more comprehensive protection, for example, damage to the car due to riots, third-party liability if an accident occurs that causes injury to other drivers, to being affected by natural disasters such as earthquakes or floods.
Costs
Compared to Total Loss Only insurance, All Risk charges a higher cost because the owner will receive more comprehensive protection for all risks.
Meanwhile, the costs that must be incurred for this type of insurance generally range from 1.05% to 4.2% of the car price and the region.
For example, if the owner has a car worth Rp250 million, the premium that must be paid by the vehicle owner is 2% of the vehicle price. Therefore, the owner must pay an insurance fee of Rp5 million per year.
Advantages
What are the advantages of this type of insurance?
- Comprehensive Protection. The first advantage is that the owner receives comprehensive protection from accidents or events from small to large. The owner only needs to report and make an insurance claim without needing to categorize the incident or car accident, and the company will cover it.
- Creates a Sense of Security. Vehicle insurance can also create a sense of security when driving and provide total comfort for the owner, as the vehicle is protected by insurance.
How to Claim
Here are the steps to claim All Risk insurance that need to be known:
- The first thing to do to make a claim is to document the losses or damages that occurred to the car. Immediately create a report attaching evidence of the loss or damage to the insurance party.
- Submitting a claim does not have to be done in the hometown, as it can be done if the owner is out of town. The way is to contact the insurance agent and explain the chronology experienced, so that the owner can get a recommendation for a partner workshop in that city.
- After receiving a recommendation for a partner workshop, fill out the provided form correctly and completely.
- The workshop party will confirm to the insurance party. If the claim is accepted, the workshop will directly handle your vehicle.
Read Also: Is Your Car Scratched? Don't Worry, Here are 6 Ways to Claim Scratched Car Insurance
Things to Know Before Buying All Risk Car Insurance
Before purchasing All Risk car insurance, there are several things that must be known to avoid misunderstandings later.
High Costs
Because the costs of All Risk insurance are relatively high, the owner must adjust the budget first if deciding to use this type of insurance.
There are Own Risk Costs
Both All Risk and Total Loss Only insurance apply own risk costs that must be paid by the owner when the incident involves personal negligence.
For example, the insurance party asks you to pay an own risk fee of Rp1 million. Then the owner must pay that amount, and the insurance party will cover the remaining costs to repair the vehicle.
So, are you interested in buying All Risk car insurance? If you are still confused, you can check our previous discussion about tips for choosing the right car insurance that suits your needs, come on check it out!
