Liga Asuransi – Dear readers, how are you? May your business and family always be well. Owning a car is a great achievement that brings comfort and pride. However, owning a car also means you have to be prepared to face various risks that may occur, such as accidents, theft or damage due to natural disasters. This is where car insurance plays an important role as a financial protection that helps you face unexpected situations without a heavy burden on your shoulders.
Imagine if your car suffered serious damage due to an accident. Without insurance, you have to cover all repair costs yourself, which often reach millions or even tens of millions of rupiah. With insurance, this financial risk can be minimized, so you can focus on solutions, not problems.
However, buying car insurance is not a simple matter. Many people often make mistakes in choosing insurance, such as being tempted by cheap premiums without paying attention to coverage, or not reading the policy in detail. These mistakes can result in financial losses or suboptimal protection when you need it most.
This article is here to help you understand common mistakes that often occur when buying car insurance. With the right information, you can make smart decisions and ensure your car gets the best protection. Let’s understand further to choose insurance that suits your needs.
Here are 10 mistakes that are often made:
- Not reading the policy in detail
Buying car insurance without reading the policy in detail is a big mistake that can have serious consequences. An insurance policy is a legal document that explains all of your rights and obligations, including coverage, exclusions, and other terms and conditions. If you neglect to read this document carefully, you may not fully understand what is covered—or worse, what is not covered.
For example, you live in Jakarta, a city that is often hit by floods. One day, a big flood hits your area and submerges your beloved car. In full confidence, you file a claim with the insurance company, only to hear the devastating words: “Sorry, flood damage is not included in your policy.” The result? You have to spend tens of millions of rupiah for car repairs.
This kind of risk is often overlooked because many car owners only focus on cheap premiums without checking the policy details. Apart from flooding, there are also other risks such as damage due to riots or negligence which are often excluded in standard policies. If you do not read and understand these provisions, your claim may be rejected.
Remember, insurance companies will not pay claims that do not match the coverage in the policy. For this reason, make sure you read the policy document carefully before signing it. If any part is unclear, ask your agent or broker. Don’t let this small negligence become a major disaster that destroys your financial stability. Reading the policy is a simple step that can save you from major losses.
- Choosing the Cheapest Premium Without Paying Attention to Coverage/Guarantee
Are you one of those people who is tempted by cheap premiums without thinking about the protection you get? If so, you’re not alone—but it’s a big mistake that can have fatal consequences. Cheap premiums may seem attractive, but there is often a hidden “price” you pay later: very limited coverage.
Maybe you bought a car insurance policy with a very cheap premium. Several months later, your car suffers serious damage in an accident. When you make a claim, you are told that your policy only covers a small portion of repair costs due to low coverage limits. The claim is rejected, and you have to cover the rest yourself. Regret? Definitely.
Why does this happen? Because you don’t pay attention to what is covered in the policy. You only look at the premium figures without considering the risks and your protection needs. Here are common mistakes you should avoid. Cheap premiums usually come with minimal coverage, which often doesn’t cover major risks like floods, riots, or total damage.
The solution? Don’t just focus on price. Compare premiums and coverage from different insurance providers. Make sure the policy covers the main risks you may face. Use the help of a broker if necessary, as they can provide the best recommendations based on your needs.
Don’t let the desire to save money compromise your coverage. Insurance is not just “cheap,” it is about providing financial security when risks arise. Be a smart shopper—choose insurance with appropriate coverage, not just because the price is low. Otherwise, you will bear the consequences yourself.
- Not Considering Location and Personal Risk
Are you sure your car insurance policy actually covers the risks where you live? If not, then you may have made a big mistake that could lead to financial loss. Each location presents different risks, and ignoring these factors when purchasing insurance would be reckless.
Imagine for those of you who live in flood-prone areas such as Jakarta or Semarang. You know that every rainy season, the risk of flooding is always present. However, you choose not to add a flood protection rider to your policy because you feel it is “unnecessary” or simply want to save. When a major flood comes and your car is submerged, your claim is rejected because flood coverage is not included in the policy. The result? You will have to pay very expensive repairs yourself.
These types of mistakes often occur because many people do not consider the personal risks associated with their location or vehicle usage patterns. The same is true for those who live in riot-prone areas, but ignore riders for protection due to riots.
To avoid this mistake, realize that insurance is not a “one size fits all” product. Choose protection that suits your environmental conditions. Enlist the help of an insurance broker to thoroughly analyze your needs. Don’t let indifference be the reason you suffer big losses in the future. Remember, it’s better to be safe than sorry. Choose the protection you really need!
- Ignoring the Insurance Company’s Reputation
Have you ever bought something just because it was cheap, only to regret it because the quality was bad? The same mistake can happen when you choose a car insurance company without paying attention to its reputation. Buying insurance from an unreliable company just because you are tempted by cheap prices is a reckless action and can lead to financial disaster.
Why is an insurance company’s reputation important? Companies with good reputations usually have better claims services, high levels of transparency, and a commitment to helping customers in difficult times. On the other hand, companies with a bad reputation often complicate the claims process, sometimes even denying claims for unreasonable reasons.
If you choose insurance with cheap premiums from an unknown company. When your car is badly damaged in an accident, you try to file a claim, but the process is slow, and ultimately your claim is rejected for unclear reasons. Instead of getting protection, you instead have to bear the losses yourself.
To avoid this mistake, take the time to check the insurance company’s reputation before purchasing. Check customer reviews on the internet, the company’s ratings on financial institutions, and its financial reports to ensure their stability. Don’t hesitate to ask for recommendations from a trusted insurance broker.
Remember, insurance is about security and trust. Don’t sacrifice your protection just because you’re tempted by cheap prices. Choose an insurance company with a good reputation so you get the best service when you need it. Your decisions now determine your peace of mind in the future!
- Not Using Insurance Broker Services
Have you ever bought car insurance just because of a friend or agent’s recommendation without doing further research? If so, you may have made a mistake that could result in protection that doesn’t meet your needs.
Many people are tempted to buy insurance directly from an agent or friend because they feel it is more practical or they want to “help” them. In fact, agents often only offer products from one insurance company they represent, so you don’t get a complete picture of the options available. As a result, you risk paying premiums for coverage that may not be optimal.
This is where the role of insurance brokers becomes very important. A broker is an independent party who works for you, not the insurance company. They have access to a wide range of insurance products from many providers, allowing you to compare premiums, coverage and additional benefits more objectively. In addition, brokers also help you understand the policy details, ensuring you choose a product that truly suits your needs and budget.
Imagine this scenario: You buy insurance directly from a friend’s agent without checking the coverage offered. When your car suffers flood damage, you realize that flood coverage is not included in the policy. With the help of a broker, situations like this can be avoided as they will ensure your cover covers the relevant risks.
Don’t let feelings of embarrassment towards friends or the desire to be practical make you lose maximum protection. Choose an experienced insurance broker to help you get the best solution and accompany you when making a claim. Insurance is a serious decision—make it wisely!
- Postponing Buying Insurance
Are you one of those who think, “Ah, I’ll just buy insurance later, my car is still safe”? If so, you are playing at huge risk. Delaying purchasing vehicle insurance is a fatal mistake that can cost you protection when it matters most.
Accidents or losses never provide prior warning. Imagine this: You just bought a new car and are thinking about delaying purchasing insurance because you feel like you are “in no rush.” A few days later, your car is involved in a road accident. Without insurance, you have to bear the repair costs yourself, which can reach tens of millions of rupiah. Regret? Definitely. But all of that happened because you chose to delay.
This mistake is often based on a false sense of confidence that the risk will not occur in the near future. In fact, the facts show that traffic accidents can occur anytime and anywhere. Procrastination only provides greater opportunities for risks to destroy your financial stability.
Don’t let laziness or a casual attitude make you lose the protection you should have had in the first place. Immediately insure your vehicle as soon as you buy it. If you feel confused about choosing the right product, use the services of an insurance broker to get a solution that suits your needs. Remember, delaying is never a wise choice—protection must start now!
- Not Understanding the Types of Insurance Available
Are you buying car insurance without really understanding what you’re paying for? If so, you may have made a reckless decision. One of the biggest mistakes that often occurs is not understanding the difference between All Risk and Total Loss Only (TLO) insurance, so you choose a product that doesn’t suit your needs.
All Risk Insurance provides comprehensive protection, covering minor to major damage, including loss of vehicle due to theft. This type is ideal for new, luxury cars or high-value vehicles. In contrast, TLO insurance only covers total loss, such as serious damage or theft, provided that repair costs are more than 75% of the vehicle value. TLO is more suitable for old vehicles with low market value.
However, many people actually buy TLO for new cars on the grounds that the premium is cheaper. When minor damage occurs such as dents or scratches, they realize that the TLO policy does not cover these repairs. On the other hand, there are also those who choose All Risk for old cars, spending more for protection that is not really necessary.
This error occurs due to a lack of understanding of the types of insurance and their coverage. In fact, choosing the wrong type of insurance is the same as throwing away money or jeopardizing your financial protection.
To avoid this mistake, adjust the type of insurance to the age, value and usage pattern of your vehicle. If you are unsure, consult an insurance broker who can provide professional guidance. Don’t let ignorance be the reason you regret it later. Be a smart and responsible buyer!
- Not Taking Advantage of Discounts and Promotions
Did you know that many insurance companies offer various attractive discounts and promotions on car insurance premiums? If not, or if you don’t care to ask, then you may have missed an opportunity to save money. This is a common mistake and shows a lack of attention to detail that could actually be very profitable.
Discounts such as loyalty for loyal customers, No Claim Bonus (NCB) for those who do not submit a claim within a certain period, or profit sharing on sharia insurance are some examples of great opportunities to cut premium costs. However, many insurance buyers only focus on the initial price without realizing that they can get additional discounts.
This mistake is often based on ignorance or even being lazy to ask. In fact, one simple question like, “Are there any discounts or promotions available?” can save you hundreds of thousands to millions of rupiah a year.
The tip is simple: don’t be lazy about asking! Always ask about discounts or promotional programs when purchasing insurance. If you use a broker, make sure they help you take advantage of all the benefits available.
Remember, every rupiah you save from premiums can be allocated to other needs. Don’t let your indifference be a reason to pay more. Be a wise shopper and maximize the benefits of every savings opportunity!
- Not Updating Protection As Needed
Have you ever re-evaluated your car insurance policy after many years of owning it? If the answer is no, then you may have made a big mistake. Protection needs are not always fixed, and neglecting to renew your policy as risks change could leave you vulnerable to loss.
Over time, the condition of your vehicle, location of residence, or car usage patterns may change. For example, cars that were previously used only for personal purposes have now become the main means of transportation for businesses. Or perhaps you’ve moved to a flood-prone area, but your policy doesn’t yet include protection against natural disasters. Unfortunately, many people don’t bother to renew their policies, assuming that the old coverage is sufficient.
This mistake is often caused by complacency or even indifference. In fact, not adapting the policy to current conditions is the same as taking a big risk. You may find that the protection you have is no longer relevant when new risks emerge, and your claim could be rejected.
The solution is simple: review your protection periodically. At least annually, check that your policy still meets your needs. If you find it difficult, engage the services of an insurance broker to help you analyze new risks and recommend relevant coverage.
Don’t let laziness or small mistakes ruin your protection. Ignoring a policy evaluation is a reckless decision and could end in major regret. Act now before it’s too late!
- Not Filing a Claim Properly
Are you frustrated because your car insurance claim was rejected? Before blaming the insurance company, have you ensured that the claim was submitted correctly? In fact, many claims are rejected not because of the insurance company’s fault, but because of the customer’s lack of understanding in following established procedures.
The most common error is incomplete claim documents. Many people take this for granted, thinking that they can complete the paperwork later. In fact, every claim has a reporting deadline. If you are late or the documents are not correct, your claim may be rejected immediately. Another mistake is not reporting the incident clearly, so that the insurance company has difficulty verifying the incident.
Imagine this: You have a minor accident and think, “Ah, I’ll just report it to insurance later.” However, when you finally report the claim after a few days, the insurance company rejects it because the report was not filed promptly. As a result, you will have to cover all repair costs yourself. Regret? Certain. But this is the result of your indifference to the procedure.
To avoid this mistake, make sure you understand the claims process from the start. Report the incident as soon as possible, prepare necessary documents such as police reports, photos of damage, and details of the incident. If you feel confused, an insurance broker can be your savior. A broker will help ensure claims are filed correctly and speed up the process.
Don’t let small mistakes ruin your financial protection. Claims are your right, but these rights can only be obtained if you comply with the procedures correctly. Don’t be careless!
Conclusion
Purchasing car insurance is an important step to protect your valuable assets from risks such as accidents, theft or natural disasters. However, mistakes in choosing insurance, such as not reading the policy in detail, being tempted by cheap premiums without paying attention to coverage, or delaying purchasing insurance, can cause significant financial losses.
Understanding the appropriate type of insurance, updating coverage as needed, and ensuring the claims process runs smoothly are important steps that should not be overlooked. This is where the role of an insurance broker, such as L&G Insurance Broker, becomes very relevant. As a trusted broker registered with the OJK, L&G Insurance Broker has extensive experience in helping customers get the best protection tailored to their needs and budget.
With access to various leading insurance companies, including PT Asuransi Zurich General Takaful Indonesia, L&G Insurance Broker ensures you get competitive offers and optimal protection coverage. Not only that, the broker also accompanies you in the claims process, making it easier and more efficient.
Don’t let a small mistake ruin your protection. Use the services of a professional broker such as L&G Insurance Broker to ensure you get the right car insurance solution, without any hassle, and according to your needs. Wise decisions today will provide you with security and peace of mind in the future.
—
DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773 (CALL – WHATSAPP – SMS)
website: lngrisk.co.id
Email: customer.support@lngrisk.co.id
—
