Before buying a luxury car, first identify everything that exists in your luxury car insurance.
Of course, knowing more about luxury car insurance allows you to think carefully before making a decision.
What is The Difference Between Luxury Car Insurance And Regular Cars?
Many people think that luxury car insurance is exactly the same as regular car insurance.
So, in the end, car owners feel fooled when they realize that the price of luxury car insurance is higher.
To predict this, you need to know and understand the difference between luxury car insurance and regular cars.
According to Research Manager and Astra Garda Auto Insurance Research Manager Bangan Pam Budy, luxury car insurance is generally treated the same as a regular car.
However, the price difference of spare parts can cause a considerable price difference. Especially when it is difficult to find spare parts.
Insurance Premiums May Vary Due to This Price Difference.
However, as Laurentius Iwan Pranoto, Marketing, Communication and PR Manager at Garda Oto revealed, the premiums available for cars are also different.
Second, the risk of a luxury car accident or theft is relatively low, but unfortunately many insurance companies aren’t trying to guarantee it.
This is due to the high repair costs, the difficulty of finding special spare parts and imported spare parts, and the difficulty of finding special workshops.
Therefore, consider this before buying a luxury car.
For additional information for your consideration, take a look at the following types of car insurance!
Types of Car Insurance
After learning that luxury car insurance isn’t much different from regular car insurance (except in terms of price), let’s take a look at the types of car insurance.
Basically, car insurance or car insurance can be divided into two types: Total Lost Only (TLO) insurance and all risk (comprehensive) insurance.
What is the difference? Let’s take a look at the following explanation.
1. Total Lost Only (TLO) Insurance
In general, Total Lost Only (TLO) is an automobile insurance that can only be claimed in the event of a “total loss”.
This means the risk of theft or damage if the repair cost is estimated to be at least 75% of the vehicle price just before the loss.
If the damage is less than that, you will not be compensated for the damage.
The 75% benchmark is used because it is certain that a car that has been damaged will not be usable.
One of the advantages of TLO-type insurance over all risks is that premiums are relatively low.
With low insurance premiums, you can divert available funds for other needs such as vehicle maintenance costs.
However, of course, the disadvantage is that you can file a new claim if the condition of the car is severely damaged and the risk of occurrence is very low.
For minor accidents, you will be responsible for the repair costs.
2. All risk insurance (comprehensive)
Generally interpreted, all risk or comprehensive insurance is “all risk” or “all”.
In this sense, it can be concluded that this type of insurance covers claims for all types of damages, from minor damages, serious damages to losses.
If the vehicle is slightly damaged or slightly damaged, the insurance will pay the insurance amount.
The benefits of all this risk insurance are widespread for dependents, so you can claim for any damages.
Of course, knowing that your car has good insurance premiums, you can drive more calmly.
However, the downside is in terms of cost, and the cost of premiums is certainly higher than TLO insurance.
In addition to the above two types of insurance, there are additional insurances that can be applied to enhance the security of the vehicle.
For example, third party legal liability (TPL), riots, riots, terrorism, sabotage insurance (RSCCTS), natural disaster insurance, etc.