The average old car owner is an antique car collector who really loves and cares about the vehicle he owns. There is a certain satisfaction for the owner of this vehicle if he can take care of it properly.
There are not many. Therefore, it is very important to enroll in an insurance program. This is done as part of our concern for the old car. Here are some tips to consider in choosing the right old car insurance product.
Understand This before Choosing Insurance for Old Cars
So that you don’t choose the wrong choice, here are some things to consider when choosing old car insurance.
- Understand Comprehensive Insurance / All Risk Protection
Even though the premium costs are quite high, most customers like to choose this type of insurance with partial or full compensation for damages that have occurred. For example, when you have an accident on the highway, a fire accident, theft, or other accidental events occur.
- Understand Total Loss Only (TLO) Insurance Protection
This insurance can only make claim changes if the customer’s car is damaged by more than 75% due to natural disasters or other problems. If the damage is less than 75%, the insurance service provider does not pay for the losses faced and is borne by the owner of the car.
- Compare Several Services from Insurance Service Providers
Get the best insurance service provider by comparing. To get it, consider the following points.
- The value of the premium that needs to be paid is compared to the protection received.
- Advantages and disadvantages of types of insurance offered by service providers and compared to features and claims process.
- The number of customers and branches the service provider has. The more customers who use the service and the number of branches means that the insurance service company has good financial management and services.
Pay attention to the factors that cause the old car premium value
Please note that the following premiums must be paid.
- Car prices
The price of the car is directly proportional to the amount of the premium. This means that the higher the value of the car, the more expensive the overall premium that must be paid per month. If the insured car is an antique car, the premium price can be higher because the price of equipment or auto parts is also rare and expensive.
- Car Year
The year of the car is also directly proportional to the value of the premium. So, the older the car, the higher the value of the premium paid or according to the customer’s interests.
- Type of Plates
The type of car plate according to the region also affects the size of the premium because it is related to the entire repair shop in the city where the license plate comes from.
Do You Use Used Car Insurance? This is the advantage
The prices of new and used cars are very different. Just to illustrate, each year a new car experiences a shrinkage of the after-sales price of approximately 10%. No wonder most people want to buy a used car because they really want to get a car at a lower price.
Even though the status of the car is used, still it must be protected by insurance, considering that the car is a movable asset that is most prone to accident or loss. Ideally, in choosing used car insurance, choose used car insurance that meets the 3Ts: the best when the car is used, the best in terms of protection, and the best in terms of price.
The benefits of using the 3T principles above are:
- Get comfort, calmness, and avoid sufficient financial losses due to damage or loss of the car.
- There are other additional benefits, such as special facilities or services from insurance companies for their customers.
Understand the Treatment of Used Car Insurance and New Cars
In theory, the process and treatment between used and new car insurance are the same. However, in practice, used car insurance arrangements are a little longer than new cars and the premiums are also slightly higher. Because it often makes used car owners reluctant to take care of insurance.
The used car insurance process follows the following flow.
- Assess first the market price of used cars when insured by the insurance company. This is slightly different from a new car whose price has been fixed, aka definitely based on the price of the time of purchase on the road (OTR).
- The insurance company will also carry out a survey process of the car that is going to be insured to measure the risk which includes a physical survey, including pre-existing damage, aka checking for damage to pre-existing used cars.
To make it easier to get used car insurance, one easy way is to buy a used car at the official manufacturer’s showroom.
Benefits of Buying a Used Car at an Authorized Manufacturing Showroom
Buying a used car through an authorized showroom, such as a BMW Used Car Center, has several benefits compared to one that is not from an official showroom. These benefits include:
- Used cars purchased through the official showroom of the manufacturer are usually not accompanied by a risk survey, so the process of joining the insurance program is faster.
- The insurer thinks the car from the manufacturer’s showroom has been reconditioned.
- The insurance company can confirm this because the used cars sold in the manufacturer’s showrooms have been reconditioned so that they are in good condition and no longer need a risk survey.
It is also important to note that the age of the vehicle can also be a point of consideration for the car to be insured or not. Each insurance company has a different policy in determining the maximum age of used car vehicles that can participate in insurance. Some have a maximum of 7 years and some are up to 10 years.
Insurance products that are suitable to be a mainstay of old cars and their benefits
The greatest risk from vehicles is just before the major religious holidays. It doesn’t matter if the car is new or used, the risk of accidents during homecoming or theft is increasing. Here are some tips for choosing the right insurance product.
- Check and confirm the product to be purchased. Usually, the insurance company can provide leeway for its customers to obtain All Risk car insurance protection by being subject to additions for old cars.
- Also consult with the insurance company, whether the owner of an old vehicle whose vehicle age is more than 8 years and a maximum of 10 years can still get special Total Loss Only (TLO) insurance coverage which is suitable for old car insurance. If so and the risk of your vehicle is relatively minimal, this product is suitable for taking.
If your choice is the TLO type of insurance, you should apply for a coverage extension that can be added and of course with the addition of premium payments that are just right for old car insurance, namely:
- Expansion of third-party legal liability.
- Riot, terrorism and sabotage, and natural disasters.
- Personal Accident for motorists and passengers.
Even though it’s not as complete as all risks, pay attention to the following advantages of TLO
On the basis of consideration of cheaper premiums and relatively low risk, many vehicle owners choose TLO type protection with the following benefits.
- If there is a risk of loss, a replacement will be given by the insurance company. Usually, the replacement is 10% lower than the actual price.
- If there is a risk of an accident that causes damage above 75% and the condition of the car is badly damaged beyond repair, the insurance company will provide a full replacement.
- The premium rate will be much cheaper.
- In the event of an accident that harms other people with the addition of the extension of the Legal Liability coverage, the insurance company will provide compensation for the loss suffered by the third party or the third person.
Insurance Provides Convenience
Having an old car besides physical care also needs protection. The presence of old car insurance can make the car maintenance budget controlled and provide driving comfort. You can choose TLO insurance products or All Risk car insurance according to your needs based on the reviews above.
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