vehicle insurance
Also called: asuransi mobil, asuransi motor
Insurance that covers damage to or loss of a vehicle according to the type of coverage.
What it means
Vehicle insurance is a product that covers financial losses due to damage to or loss of an insured car or motorcycle. There are two common types of protection: all risk, which covers comprehensive losses, and total loss only, which covers only severe damage or total loss. In Indonesia, premiums are influenced by the vehicle's value, the type of protection, and the claims history. The policy usually sets out the compensation limit, excluded risks, and the obligation to report claims.
Why it matters for families
Vehicles are often a family's major asset, so severe damage can drain savings. Choosing the right type of protection determines whether minor damage is also covered. Misunderstanding the coverage can make families think all damage is guaranteed, then be disappointed when a claim is rejected. Match the premium to the vehicle's value and your budget capacity.
Example
For example, a family car worth about Rp180 million is insured with an annual premium of several million rupiah, depending on the type of protection and risk profile. If a minor scratch occurs, a claim can only be filed if the policy covers that risk. For severe damage from an accident, compensation follows the policy terms and the insured value.
Common misunderstanding
Some owners think vehicle insurance automatically replaces all damage. In fact, some risks are excluded and there are deductions or compensation limits according to the policy.