Confused About Car Insurance? Here’s What You Need to Know

If you own a car or are planning to buy one you’ve probably thought about getting insurance. And no, it’s not just a formality. Car insurance is a smart way to protect your finances in case something unexpected happens.

From accidents and theft to natural disasters and vandalism, car insurance covers a wide range of risks. Without it, you're left to cover all the repair or replacement costs out of pocket and that can get expensive, fast.

There are plenty of insurance companies out there offering different types of vehicle protection. And while that means you have options, it can also make the decision process a little overwhelming.

So before you commit to a policy, it’s worth getting to know the main types of car insurance commonly offered in Indonesia.

5 Types of Car Insurance

Total Loss Only (TLO)

TLO insurance only covers total loss either when your car is stolen or damaged beyond 75% of its current value. It's a more affordable option and is best for those looking for basic coverage. But keep in mind: minor damage like dents or scratches won’t be covered.

All Risk / Comprehensive

This is the all-in package. All Risk or Comprehensive insurance protects you against a wide range of incidents from minor scrapes to major damage, even theft.

Because of its broader coverage, premiums are higher. But for new or high-value cars, this level of protection is often worth it.

Some insurers differentiate between Comprehensive and All Risk coverage. The difference usually lies in the range of added protections included, with All Risk sometimes offering more extensive options.

Combined Insurance

Combined insurance blends the best of both worlds starting with Comprehensive coverage in the early years and switching to TLO as the vehicle depreciates over time.

It’s a common setup for cars bought on credit and helps you manage premium costs while keeping coverage in line with the vehicle’s value.

Collision Coverage

This type of insurance is focused specifically on damage caused by a collision or crash. It not only covers your car but can also help pay for medical costs if you're injured in the accident. It's a good choice if you want extra peace of mind on the road.

Add-On Coverage (Riders)

Riders are optional extras that expand the protection offered by your main insurance policy. These can include Third Party Liability (covering damage you cause to someone else’s vehicle or property), natural disaster coverage (floods, earthquakes, landslides), or even terrorism coverage.

While optional, these riders can make a big difference just note that each one adds to your overall premium.

Drive Easy with TRAC: Car Rentals That Come Fully Protected

Choosing the right car insurance is a key part of being a responsible vehicle owner. But what if you don’t want to deal with the hassle of buying insurance, managing claims, or handling maintenance?

That’s where TRAC car rental comes in. When you rent from TRAC, everything is handled for you, including insurance and regular maintenance. You get to drive worry-free, knowing your vehicle is fully protected and ready to go.

TRAC offers flexible rental periods, whether you need a car for a day, a month, or even a year. From weekend getaways to daily commutes or business travel, there’s a service package that fits your needs and your budget.

All cars in TRAC are well-maintained and ready to use. In fact, the majority of cars are still young with a service life of under 5 years. So it's definitely safe to take anywhere.

And then, every TRAC rental comes with Comprehensive Insurance, including Third Party Liability and Passenger Legal Liability, so you’re covered not just for the vehicle, but also for damage to other parties and passenger belongings. With this level of protection, you can focus on enjoying the ride.

To find out more about TRAC's insurance provisions, you can directly visit the TRAC car rental service terms and conditions page.

Easily book TRAC car rental services on the homepage of the website or TRACtoGo application. Download the app on Playstore and Appstore.

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Whatever the track, just use TRAC!