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Types of car insurance and the calculation of premiums

Car insurance will reduce the financial burden if unexpected things happen while driving. Therefore, this protection product is important for every owner of a four-wheeled car. For your safety and comfort while driving, you of course have to pay the insurance premium as per the agreement in the insurance policy. Before selecting an insurance product, it is a good idea to check modified Best Car Insurance First!

This is done so that you can choose what suits your needs and financial capabilities. Including if you want to own a car at 150 million rupees, of course you have to know the full list of 150 million cars. Well, before choosing the best car insurance product, let’s first get acquainted with the types of insurance premium calculation.

Types of car insurance

Before you choose the most suitable car insurance, the first thing you need to do is to determine the types first. Because different types of auto insurance have different rules and benefits.

You can also choose the type of car insurance that best suits your needs and financial capabilities. Here are some of the most popular types of car insurance for owners of four-wheelers:

1. Total Loss Only (TLO) Insurance

Total Loss Only (TLO) insurance is a type of insurance that will provide replacement in the form of a new car when you lose the car.

This insurance will not provide replacement only if your vehicle is damaged. When viewed in terms of the premium you have to pay, this type of TLO insurance is relatively cheaper than other types of insurance.

If you are going to file a claim for TLO insurance, you need proof of a loss report from the police. In addition, there is evidence of personal data and proof of ownership of the vehicle that you must submit to the insurance. TLOs are a great option for cars that are still on credit through rental companies or banks.

2. Car insurance against all risks

The second type of car insurance is all-risk car insurance Inclusive. This type of insurance is classified as safe and profitable, as it will cover all forms of loss or damage that you suffer.

If your favorite vehicle is damaged or has an accident, you will continue to get a replacement in an amount in accordance with the repair costs to be incurred.

In terms of monthly or yearly premiums, all-risk car insurance has a relatively higher price compared to total loss only (TLO) insurance. However, it is recommended to insure the car against all risks because it covers all risks of damages that may occur.

Calculate insurance fees or premiums

As we explained earlier, if you want to get the various benefits that car insurance provides, you are obligated to pay the premium. You can directly ask the insurance company of your choice to calculate the costs and how to claim the insurance.

This has become very important because many people are starting to distrust different insurance products due to the many insurance frauds taking place in the community.

Therefore, when you intend to buy a car insurance product, you should really study all the terms and rules. In addition, the amount of costs should also be already calculated so that you do not feel burdened when you have to pay insurance premiums.

In the part of the agreement signed at the beginning of the agreement period, you must understand each point in it. If you feel that there is a part that is still not understood, feel free to inquire directly with the insurance company.

All auto insurance premiums against risks

the following is modified Auto insurance against all risks according to the OJK circular in force in Indonesia:

category car price first area Zone 2 Zone 3
Class 1 0 – 125 million Indonesian rupiah 3.82% – 4.20% 3.26% – 3.59% 2.53% – 2.78%
Class 2 >125 million rupees 200 million 2.67% – 2.94% 2.47% – 2.72% 2.69% – 2.96%
Class 3 > 200 million rupees – 400 million rupees 2,18% – 2,40% 2,08% – 2,29% 1.79% – 1.97%
Class 4 >400 million rupees – 800 million rupees 1,20% – 1,32% 1,20% – 1,32% 1.14% – 1.25%
Class 5 > Rp800 Gutta 1.05% – 1.16% 1.05% – 1.16% 1.05% – 1.16%


  • Zone 1: Sumatra and surrounding islands.
  • District 2: DKI Jakarta, West Java and Banten.
  • Zone 3: Apart from Zone 1 and Zone 2.

TLO . premium

the following is modified TLO insurance according to the OJK Circular Letter.

category car price Zone 1 Zone 2 Zone 3
Class 1 0 to 125 million rupees 0.47% -0.56% 0.65% -0.78% 0.51% -0.56%
Class 2 > 125 million rupees 200 – 200 million rupees 0.63% -0.69% 0.44% -0.53% 0.44% -0.48%
Class 3 > 200 million rupees – 400 million rupees 0.41% -0.46% 0.38% -0.42% 0.29% -0.35%
Class 4 > 400 million rupees 800 – 800 million rupees 0.25% -0.30% 0.25% -0.30% 0.23% -0.27%
Class 5 > 800 million Indonesian rupiah 0.20% -0.24% 0.20% -0.24% 0.20% -0.24%


  • Zone 1: Sumatra and surrounding islands
  • District 2: DKI Jakarta, West Java and Banten.
  • Zone 3: Apart from Zone 1 and Zone 2.

These are the types of car insurance and premium calculation. It might be useful!

Types of car insurance and the calculation of premiums


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