reduce the risk of loss in car loans

 Owning a car has many additional costs.

It starts with taxes, services, insurance.

We could have driven safely and followed the rules of the traffic.

But there are still risks in the name.

First, we have external causes such as the fault of others, flooding or even theft.

And the name of the machine, we don’t know when it might break.

The insurance company will cover the cost of repairs to the workshop, there is a guarantee of new replacement.

Often when you buy a car with a bank, the bank requires you to have car insurance.

if you don’t pay, you want the bank to make sure the car is in good health and can be repaired and covered by insurance.

I explain the types of car insurance:

1. All Risk, also known as Comprehensive car insurance.

This type of insurance accepts vehicle damage claims ranging from minor damage to major damage.

All Risk insurance is available to us who have just bought a car and if it moves we need to make a claim right away.

Because he bears all the damage, of course, the cost of All Risk insurance is more expensive. For example, the All Risk premium for an area in the city center is 3.14% of the price of a car.

Meanwhile, the premium percentage is much higher than the most expensive TLO “Total Loss Only” premium which is only 0.78%.

2. type of car insurance TLO or Total Loss Only.

TLO insurance provides coverage or insurance premiums in the event that the vehicle is not lost due to theft, or there is damage of more than 75% of the cost of the vehicle at that time.

This means that the vehicle must be fully usable before it can file a claim. So once the car is only one cm long, or hit and move, don’t expect the claim to be accepted.