Car insurance is an important part of ensuring financial security when you own a car. Depending on your needs and financial conditions, each car owner will have different choices about car insurances. However, not everyone clearly understands the difference between these types of insurance and how to choose the right insurance package. The following article will help you compare popular types of car insurances so that you can make an informed decision.
1. CIVIL LIABILITY INSURANCE (COMPULSORY INSURANCE)
Civil liability insurance (also known as compulsory insurance) is a type of insurance that every car owner must participate in according to the law. The purpose of this insurance is to protect the rights of those who suffer damages in case you cause an accident. This insurance will pay for damages to property or injured people when you are the one causing the accident.
The benefit of public liability insurance is that it helps protect you financially in the event of an accident. However, this type of insurance only covers third-party damages and does not protect your car in the event of an accident.
2. COMPREHENSIVE CAR ACCIDENT INSURANCE (COLLECTION INSURANCE)
Comprehensive car accident insurance, also known as collision insurance, protects the owner of the car in the event of damage to the car due to collision with other vehicles, fixed objects or traffic accidents. This type of insurance includes the cost of repairing the car after a collision or even the cost of replacing the car if the car is severely damaged.
The advantage of comprehensive accident insurance is that it helps the owner reduce the financial burden when the car has an accident. However, this insurance is usually more expensive than public liability insurance due to its broader coverage. It may also have exclusions such as not paying for damage caused by natural disasters or factors unrelated to traffic.
3. CAR THEFT INSURANCE
Car theft insurance provides financial protection when your car is stolen or damaged by a thief. This type of insurance will help you receive compensation when your car is lost or severely damaged due to causes not caused by you.
The benefit of car theft insurance is that it helps you protect your assets in case of events that are beyond your control. However, you need to pay attention to the terms of the insurance contract to ensure that you will receive reasonable compensation in the event of theft.
4. COMPREHENSIVE PROTECTION INSURANCE (COMBINED INSURANCE)
Comprehensive protection insurance (or combined insurance) is an insurance package that combines civil liability insurance, comprehensive car accident insurance, and car theft insurance. This is a popular choice for those who want the most comprehensive protection for their car. With this insurance package, you will be protected not only in case of an accident, but also when the car is lost or damaged due to the actions of others.
The advantage of comprehensive protection insurance is that it provides a high level of protection and helps car owners feel more secure when traveling. However, because this insurance includes many benefits, the insurance premium is also higher than basic insurance. This premium may vary depending on the value of the car, the conditions of use, and the area where you live.
5. NATURAL DISASTER INSURANCE
Natural disaster insurance is a special type of insurance that protects your car from damage caused by natural phenomena such as storms, floods, lightning, or earthquakes. Although this type of insurance is not as common as other types of insurance, if you live in an area where natural disasters occur frequently, this can be a useful option.
The benefit of natural disaster insurance is that it provides you with financial protection in case a natural disaster damages your car. However, this insurance is only valid for accidents caused by natural disasters, and the cost of insurance can be quite high if the area you live in is at high risk of natural disasters.
6. VOLUNTARY INSURANCE (EXTENDED INSURANCE)
Voluntary insurance, also known as extended insurance, is an additional insurance package to basic insurance types, helping to increase the level of protection for the vehicle. With voluntary insurance, you can choose additional benefits such as insurance for luggage, vehicle accessories, or costs related to vehicle rescue in case of an accident.
The advantage of voluntary insurance is that you can flexibly choose insurance benefits that suit your personal needs. However, the insurance premium will be higher depending on the benefits you choose to add.
CONCLUSION
Choosing the right type of car insurances is an important decision, helping you protect your assets and minimize financial risks when participating in traffic. Depending on your needs and financial conditions, you can choose different types of insurance, from compulsory insurance to comprehensive insurance packages or voluntary insurance to ensure the safety of your vehicle and driver. It is important that you understand the benefits and limitations of each type of insurance to make the most appropriate choice.
