Best Car Insurance 2020 and Tips for Choosing it

How important is car insurance? – You might have been driving the car carefully, wearing a safety belt , and obeying the prevailing traffic signs. Unfortunately, the same thing is not necessarily done by other motorists. 

It is quite possible, the negligence of others threatens the vehicle, even your safety. Not only accidents, criminal acts such as theft can happen to anyone.

Fortunately, there is car insurance that can minimize financial losses experienced when these unexpected situations occur. That way, the losses incurred are not as big as the actual losses.

But, having car insurance means you have to pay a premium. Compare with the benefits? The answer, of course is comparable. As long as … you can choose the right insurance.

Having car insurance is one way to maintain a healthy financial condition. The benefits can be greater than the premiums paid. 

When there is a risk, insurance companies will bear the losses we experience, so that the financial burden we feel becomes much lighter. 

As you know, a car is an asset that requires no small cost in purchasing or maintaining it. Therefore, it is natural to plan a budget well to keep the value of the asset from diminishing, one of which is having car insurance.

After realizing the importance of having car insurance, first understand the type of car insurance available so as not to get confused when choosing.

Generally, insurance companies provide two types of car insurance, namely all risk car insurance and total loss only (TLO). Understand the difference between the two through the following explanation. 

Difference between all risk and total loss only (TLO) car insurance

1. All risk car insurance

As the name suggests, all risk car insurance provides protection for all risk of loss that may occur. Regardless of the percentage of damage large or small.

Typically, this insurance also provides extended coverage covering damage caused by floods, riots, and other protections.

In some insurance companies, all risk car insurance is often referred to as comprehensive insurance or joint insurance.

2. Total loss only (TLO) car insurance

TLO car insurance coverage only covers losses of more than 75 percent of the price of the car or loss due to crime, such as theft. 

If there is minor damage with a loss below 75 percent of the value of the car, the loss will not be covered by the insurance company.

The 75 percent benchmark is used as an assumption that damage to the car has made the car unusable.

For example, if a car is burglarized and stolen while parked, TLO car insurance will cover the financial losses incurred. However, if the car is only scratched so that the resulting loss is certain to be below 75 percent of the price of the car, the insurance company will not provide compensation.

With a comprehensive guarantee, the cost of all risk car insurance premiums is higher than TLO car insurance. That way, if you want complete protection, choose all risk car insurance . But if you want to save and feel careful enough in driving, TLO car insurance is enough for you. 

In addition to these two types of car insurance, vehicle insurance is also known as third party liability (TPL), which is insurance that guarantees protection from a third party claim. A third party is anyone involved in an accident with your car. 

For example, the car you are driving was involved in an accident with another car containing three people, and all three were injured. Then the medical expenses of the three passengers will be borne by the insurance company. 

Or if the passenger is fine, but the car is damaged, the car repair costs can be borne by your insurer.

If you already know the type of car insurance that suits your needs, here are seven choices of the best 2020 car insurance to choose from.