What does all risk car insurance cover?

As is well known, using car insurance services is no longer a stranger to car owners. Even when prospective car owners will apply for a car purchase credit, generally the dealer will automatically include a purchase package plus car insurance.

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Car insurance What is offered generally depends on the type of car chosen. For passenger cars, they generally use all risk (comprehensive) type car insurance, while for commercial cars (trucks and pick-ups) often use Total Lost Only (TLO) type car insurance.

These two types of car insurance have many differences both from the amount of premiums paid and the types of protection that can be provided. But for sure, both of them can provide protection against financial losses that may occur to your car due to accidents and other things.

At least, the risk of financial losses that can occur due to accidents, floods, riots or just dents due to being hit by other cars can be transferred to insurance companies. However, the type of car insurance used to cover losses thoroughly is the All Risk (comprehensive) type of car insurance.

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This all-risk car insurance has insurance premiums that are relatively more expensive than the TLO type, especially if it includes the risk of flooding, riots and damage by other parties. For example, if your car costs IDR 200 million, then the premium that must be paid is at least around IDR 5 million to IDR 7 million per year.

With premiums that are relatively more expensive, then what does all risk car insurance cover? Here are some things that can be covered and cannot be covered by all risk car insurance.

General things can be covered by all risk car insurance

Here are some common things that can be covered by car all-risk insurance, but all conditions refer to the insurance agreement contract that is generally included in the respective insurance policy.

1. Car damage as a result of hitting another vehicle or being hit by another vehicle, or for a car that hits an inanimate and stationary object such as a power pole, wall or tree.

2. The car body is dented and scratched due to grazing, cracked glass, broken rearview mirror, broken stop lamp, lost accessories and others in accordance with the provisions of the insurance claim agreed in the insurance policy.

3. Total or partial damage caused by falling objects and other traffic accidents.

4. Loss of vehicle due to violent crimes such as robbery, theft and expropriation.

5. Loss of vehicle or total damage due to disasters and riots.

Losses that do not include all risk car insurance coverage

Although this all-risk car insurance can cover all losses incurred in your car, this all-risk car insurance also has limits on losses that can be covered

The damage or loss that cannot be covered by this type of All Risk insurance is generally negligence, there is an element of intentionality, and false reports. The following are the conditions of loss that cannot be covered by all risk car insurance

1. Car damage that occurs as a result of the car being used to push or pull the car.

2. Car damage due to use for training, races, channeling hobbies, marches and being used by people who do not have a driver's license.

3. Loss of the car due to embezzlement and fraud, as well as events that are beyond reason such as hypnosis and the like.

4. Vehicles are used for crimes committed by the policyholder and by the policyholder's family

5. The vehicle is exposed to chemicals coming from inside the car and then hits the surface and others.

6. Damage to the car due to carrying cargo that is beyond the limits set by the manufacturer.

7. Car damage due to carrying goods, animals that do not comply with the provisions of the use of the car.

8. The car was lost as a result of using vallet parking services. This incident is considered that the owner of the vehicle deliberately handed over / left the car to an unknown person with the risk of loss.

9. Damage to the car engine that occurs due to negligence of use such as overheating, obl that has been changed specifications (modif) and the use of spare parts that are not installed in authorized workshops.

All of the above all risk car insurance coverage is only a general provision. For more certainty regarding things that can be covered by all risk car insurance, of course, it refers to the terms and agreements stated in the agreed insurance policy.

Therefore, it's a good idea to read more carefully in the letter of the all-risk car insurance agreement that you have.