JAKARTA, HARIANHALUAN.COM – The risk of having a car accident still exists, even though we are the owners car have obeyed the signs and be more alert when driving on the road.
Accidents are risks that will force you to shell out large sums of money. Meanwhile, car repair costs are not cheap, both for damage to the car body and engine.
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Can accidents be avoided 100%? It’s possible, the way is to not operate your vehicle at all, but that’s certainly not what we want.
In order to be aware of the financial risks caused by this event, take several steps given by the financial planner and financial educator Lifepal Aulia Akbar CFP®, AEPP®:
Choose the right car insurance
The only product that can protect you from any financial risk in the event of an accident, crash, or vehicle theft is vehicle insurance.
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Simply put, the financial burden that you have to bear as a result of the accident will be transferred to the insurance company.
Broadly speaking, car insurance is divided into two types, the first is total lost only (TLO) which covers financial losses due to motor vehicle theft or serious damage, which is equivalent to 75% of the price of the car.
Meanwhile, all risk car insurance will cover all types of risks experienced, unless there are agreed exceptions.
If you live in a densely populated area, choose all risk because the risk of minor damage is quite high.
Prepare an emergency fund for your car
There is also an emergency fund for cars, which is quite useful for dealing with unexpected expenses related to car ownership. Call it such as changing important spare parts such as car tires, batteries, and so on.
In addition, an emergency fund is also very useful if you make a car insurance claim.
Please note, your car insurance will not cover 100% of the repair costs incurred due to risk. There will be a fee called Own Risk (OR) which is generally IDR 300 thousand which must be paid by the car owner when making a claim per incident.
The purpose of enacting a deductible or OR is so that car insurance owners remain careful driving a car.
Also protect yourself and your family
It is not enough if you only have insurance that protects the car. Protect yourself with personal accident insurance.
Some all risk car insurance generally have benefits in the form of personal accident protection. However, the amount of compensation for personal accidents provided by car insurance may be considered insufficient, so there is no harm in adding protection in the form of personal accident insurance.
Medical expenses for accidents are also not cheap. And what’s worse than that, the driver could be disabled, to death due to this event.
When the driver suffers from a total disability or dies, and he happens to be a breadwinner in the family, it is certain that the family he leaves behind will lose his monthly income.
Therefore, the car owner who is the breadwinner must also be protected by accident and life insurance.
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