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Types of Motor Vehicle Insurance

Insurance is an agreement between two parties, one party is obliged to pay the fee and the other party is obliged to guarantee fully the dues payer in the event of something that happened to the first party or his goods in accordance with the agreements made. Motor vehicle insurance is the owner of the motor vehicle into an agreement to the insurer to pay insurance contributions (premiums) are usually per year, but can also be done in a few years at a time and the vehicle insurance is obliged also to provide assurance to the vehicle insured in case of damage repair mild to severe and the replacement of part or all of an insured motor vehicle if you have a variety of things that damage caused by a variety of things in accordance with the insurance agreement.

The amount of motor vehicle insurance premium is calculated based on the percentage of the price of the new vehicle and the vehicle in the market price if not a new vehicle. The more expensive the car, the percentage is smaller. This percentage is calculated results for the insurance premium to be paid by the users of insurance services to the insurance. In this insurance agreement, the owner of the vehicle / premium payer would have a valid certificate of insurance as insurance participants to have a policy number and contains the selected type of insurance. This policy is useful when going to make an insurance claim.

Types of Motor Vehicle Insurance

Types or kinds of motor vehicle insurance is mostly composed of two (2) types of insurance, namely: type Comprehenship Insurance and Insurance Type TLO (Total Loss Only).
  • Comprehenship / All Risk: is the type of coverage that must be borne by the insurer to the insured vehicle, namely a guarantee against mild to severe damage and even loss of the vehicle. So, if the vehicle is damaged slightly, then the insurance company will cover all repair costs.
  • TLO (Total Loss Only): that is a guarantee against loss of any vehicle or if the damage is more than 75% of the price of the vehicle.
So, this type of insurance Comprehenship or All Risk is a type of insurance that is widely used in the vehicle passenger cars. While many types of insurance TLO used for freight vehicles and motorcycles.
In addition to the above options, there are a variety of additional insurance packages such as insurance due to natural disasters and others. The amount of premium for All Risk / Comprehenship greater than the premium type of TLO (Total Loss Only).