Having a car is not just a matter of buying it, but you also need to take care of it so that your vehicle still has an excellent condition and keep the selling price of the car. For your vehicle to stay protected, surely you will take care and maintain it by using car insurance. However, when you want to choose auto insurance, you should first know what your needs. Know also how to calculate car insurance premiums will not be cheated. You do not need to feel confused about insurance premiums because this car insurance premium rate is set according to applicable law. So, there is no such thing as the cost of stealth. Therefore, to let you know how to get a cheap car insurance for new drivers under 25, you should follow this instruction:
- Calculate The Premium Car Insurance
But before calculating the premium cost, it’s good to see the types of vehicle insurance available. Currently, there are Total Lost Only (TLO) and All Risk or Comprehensive car insurance. Everything is intended to protect from loss, but the coverage of protection between the two insurance is different. Every car insurance has a varied policy. In general, how to calculate the TLO car insurance premium and all risk based on the insurance rate multiplied by the price of the car. The amount of insurance rate varies between one car insurance with another. Type, year, and plate may also affect the amount of premium to be paid. There is also insurance that considers the location, age of the driver, type of guarantee, credit track record, until the age of the driver.
- Calculation of Car Insurance Premium with Expansion of Coverage
The price differences can make potential buyers insurance policies confused. Want a cheap but who will pay in case of minor damage? Want an expensive but what if the insurance money will eventually burn? Insurance premiums are only paid once, but insurance protection is only valid for one year. The high probability of damage risk needs to be considered well. The higher the risk of severe damage, you should pick the TLO one. Meanwhile, if the car price is high and requires a small cost even if slightly damaged, you should select the insurance scheme for all risk. A number of insurance premiums described above are called a pure premium. There are some risks that are not covered by all risk car insurance, and you can decide to expand your car insurance coverage. This coverage includes the things that may happen to the car, which is caused by:
- Earthquake / Tsunami
- Sabotage / Terrorism
Damage or loss due to the above things are very likely to happen in some country, especially in Asia. For the flood alone, for example, every year the people of the capital must be willing to deal with this one problem. The magnitude of each insurance rate is different. In general, there is only less than 0.5%.The cost of all risk is much higher than the TLO, even more so if you want to add a protection extension. If the price of the car you have spelled out high, so it costs not a little damage even mild, you should choose all risk. This type of insurance is also suitable for car rental business or vehicle courses because the risk of just a minor damage is relatively high. The frequency of car usage affects the type of insurance to be taken. The more frequently used, the greater the likelihood of the accident. Moreover, if the route is often used is a reliable path. Again all risk becomes an option.
Conversely, if the car is more often parked at home than on being invited out, better choose TLO. Accidents are not the only deciding factor. The crime rate also needs to be scrutinized. Crime in certain areas is high. If you live or often pass in such areas, make sure to insure your car with TLO. Both car insurance comparisons for new cars can be a consideration for you to determine which option is right for your favorite car vehicle. Understand and think in advance about the car insurance.