Buying a used car is one option in choosing a car. The main reason is because the price is cheaper, so there is no need to go back and forth and so on. Owning a vehicle like a car certainly has a number of risks that must be faced, such as damage in the event of a traffic accident. Of course, used car insurance is also needed, because events in the middle of the road are sometimes unpredictable.
Some insurance providers stipulate that the maximum age for a used car cannot be more than 10 years, and the condition of the vehicle at registration does not indicate the absence of any physical defects.
Of course, the officer will conduct a thorough review of these conditions before the company agrees to provide protection. In addition, the insurer also evaluates the number of used vehicles to be insured. If the population is considered small, then consideration of protection will be quite difficult.
Therefore, for those of you who intend to buy a used car, it is highly recommended to buy used car insurance. In order not to get confused in choosing the right insurance for your used car, you should pay attention to the following things.
1. Vehicle Depreciation
Cars are assets that can be depreciated or depreciated in value quite high. If you choose a vehicle that is more than 5 years old, you can save money and spend your money on other needs. However, owning a car that is more than 5 years old is not easy. You must remember that the intensity of use and mileage greatly affect the condition of the car.
If you do decide to buy a used car, you should pay attention to the quality of the car engine. Don’t be fooled by the sleek appearance of the car. Because usually someone polishes the appearance of his car thoroughly before selling it at a high selling price.
2. Adapt to Vehicle Conditions
As with new cars, for used cars, you can also choose total loss only (TLO) insurance. Used cars are more at risk because the engine condition has deteriorated. Used cars are also more likely to be targeted by crime, especially theft, because used cars are easier to sell than new cars.
To determine the right type of used car insurance, you need to pay attention to the age of your car. If your used car is less than 5 years old, you should choose all risk insurance to reduce repair costs. Even if it’s only minor damage, the intensity is quite high, you’ll often have to take your car to a repair shop.
If your used car is more than 5 years old, you can upgrade to TLO. Whichever type of insurance you choose, be sure to add extended coverage. For example, flood conditions, natural disasters, third party coverage.
3. Change the Name of the Insurance Policy
If you buy a used car that is still in installments, the first thing you should do is change the name of your insurance policy. Usually, insurance is sold as a package for cars purchased on credit. To do this, all activities related to the car must be known to the insurance company. You must do this to keep the vehicle safe.
So, if the car is in your hands, as the new owner, you can submit a claim to the appropriate insurance company. Conversely, if purchases and sales are not reported to the finance company, then the insurance company is not required to claim compensation for the car. This is fully stated in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) which is an official regulation issued by the regulatory body.
4. Combining All Risk Insurance and TLO Insurance
In terms of coverage costs, all risk insurance does provide a number of benefits and conveniences for car owners. This is of course proportional to the amount of premium that must be paid.
But don’t worry, you can also combine all risk and TLO for your dream used car insurance. For example, at the start of a purchase, you insure all risks. After the age of the car, you can use this type of TLO insurance.
5. Document Completeness
If you buy a used car that is still in installments, the first thing to do is change the name of your insurance policy. Usually, insurance is sold as a package for cars purchased on credit. To do this, all activities related to the car must be known to the insurance company. You must do this to keep the vehicle safe.
So, if the car that is already in your hands is at risk, you as the new owner can submit a claim to the appropriate insurance company. Conversely, if purchases and sales are not reported to the finance company, then the insurance company is not required to claim compensation for the car.
This is fully stated in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) which is an official regulation issued by the regulatory body.
This can be done in several ways, namely:
The seller and the buyer of the vehicle enter into an agreement to transfer ownership of the vehicle.
Complete the required documents, namely STNK and vehicle sales deed.
After the documents are ready, the new owner can submit an application to the nearest insurance company branch
Once submitted, the insurance company will review the documents and issue a file called an attestation, including the vehicle’s ultimate owner as the insurer. Thus, the insurance premium for the next vehicle will be paid by the new owner.
It should also not be forgotten that the new owner must be aware of the risks covered and excluded, as well as the duration of coverage.
To find out more about the status of the policy, you can directly consult with the relevant insurance company agent.
6. Take Advantage of Digital Services
To make it easier to apply for used car insurance, it is recommended to use digital services provided by insurance companies for your convenience.
With this service, you will enjoy various conveniences, from managing claims to monitoring repair status to completion. You can apply for a vehicle at a different location, such as your office, home or mall.
Those are six tips that you can consider before signing up for used car insurance. Apart from the points above, make sure you also choose a reliable and trusted insurance company. Don’t be fooled by the size of the allowance that is set, but it’s not in accordance with the opportunities given!