Luxury Car Insurance: what is covered and how much is the premium?

However, before deciding to buy vehicle insurance, there are some things that need to be known first, such as the types of vehicle insurance, what is covered by insurance, and how much premium must be paid. The following is the explanation.

Luxury Car Insurance: what is covered and how much is the premium?
Luxury Car Insurance: what is covered and how much is the premium?

Luxury cars are one of the symbols of status and prestige for some people. In addition, luxury cars also have high quality and performance, thus providing comfort and safety for users. However, owning a luxury car also means having to be prepared for possible risks, such as damage, accidents, or theft.

To protect this valuable asset, it is highly recommended for luxury car owners to have vehicle insurance. Vehicle insurance is a financial protection product that will cover the cost of repairing or replacing a car if things happen that are not desirable. With vehicle insurance, luxury car owners do not have to worry about spending big money if their car has problems.

However, before deciding to buy vehicle insurance, there are some things that need to be known first, such as the types of vehicle insurance, what is covered by insurance, and how much premium must be paid. The following is the explanation.

Types Of Vehicle Insurance

In general, there are two types of vehicle insurance available on the market, namely total loss only (TLO) insurance and all risk (comprehensive) insurance.

Total loss only (TLO) insurance is a type of insurance that only covers total damage or at least 75% of the value of the vehicle. Total damage means that the car can no longer be repaired or the cost of repairs exceeds the value of the car. TLO insurance also covers vehicle loss due to theft. If the damage to the vehicle is less than 75%, then the car owner cannot file a claim.

All risk insurance (comprehensive) is a type of insurance that covers all risks that occur in vehicles, both light and heavy damage, and even loss. All risk insurance will pay the cost of repairing or replacing the car in accordance with the agreed coverage value. All risk insurance also usually provides additional facilities, such as towing services, partner workshops, or temporary car replacement.

Vehicle Insurance Premiums

The vehicle insurance premium is the cost that the car owner must pay to the insurance company in return for the protection provided. The amount of vehicle insurance premium depends on several factors, such as the type of insurance, vehicle value, vehicle age, vehicle model, vehicle operating area, and claim history.

In general, TLO insurance premiums are cheaper than all risk insurance premiums. This is because the coverage of TLO insurance coverage is narrower than all risk insurance. However, TLO insurance premiums can also be more expensive if the value of the vehicle is very high or the age of the vehicle is very old.

For luxury cars, insurance premiums are usually higher than for regular cars. This is because luxury cars have a high selling point, expensive and difficult to obtain parts, and large repair costs. In addition, luxury cars are also more susceptible to being targeted by thieves.

To get an idea of how much vehicle insurance premiums are for luxury cars, the following are some examples of simulation calculations of tlo and all risk insurance premiums for several brands and models of luxury cars in Indonesia.

Simulation Of Luxury Car Insurance Premiums

Car brand and ModelCar Price (Rp)TLO insurance premium (Rp)all Risk insurance premium (Rp)
BMW X5 xDrive40i1.800.000.00018.000.00036.000.000
Mercedes-Benz GLC 2001.100.000.00011.000.00022.000.000
Audi Q7 45 TFSI1.900.000.00019.000.00038.000.000
Lexus RX 3001.300.000.00013.000.00026.000.000
Porsche Macan2.100.000.00021.000.00042.000.000
Source: cermati com

Note: the above simulation is only illustrative and non-binding, and does not take into account other factors that can affect the amount of insurance premiums, such as vehicle age, operational area, or claim history.

The Importance Of Protecting Your Luxury Car

From the simulation above, it can be seen that vehicle insurance premiums for luxury cars are not cheap, and can even reach tens of millions of rupiah per year. However, when compared with the benefits obtained, the insurance premium is actually very worth it.

By having vehicle insurance, luxury car owners will get peace and comfort in driving, without worrying about the risks that may occur in their cars.

Vehicle insurance will also help luxury car owners save on the cost of repairing or replacing a car in the event of damage or loss, which is certainly very expensive for luxury cars.

In addition, vehicle insurance will also provide additional facilities that can make it easier for luxury car owners to take care of their cars, such as towing services, partner workshops, or temporary car replacements.

Thus, vehicle insurance is a very useful and beneficial investment for luxury car owners.

So the article about luxury car insurance: what is covered and how much is the premium? Hopefully this article can provide useful information for those of you who are looking for vehicle insurance for your luxury car.

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