The amount of insurance premium cost Total Loss Only or All Risk will still be added with administrative costs, policy costs, stamp duty, and other costs. Based on the above calculation, All Risk insurance premium is greater than Total Loss Only. You need to provide more funds if you want to get an All Risk car insurance policy.
Such price differences can make potential buyers insurance policies confused. Want a cheap one, but who will pay in case of minor damage? Want the expensive, but what if the insurance money will eventually burn? Insurance premiums are paid only once, but insurance protection is only valid for one year.
No need to be confused about cheapest car insurance general. You can do a combination of Total Loss Only and All Risk. For example, if an insured car has just come out of the showroom or maybe you are crediting a used car, there is no harm in purchasing an All Risk insurance policy in the first and second year. After that, the car can be insured by buying Total Loss Only insurance policy in the third year and so on.
The financial burden is proportional to the risk of damage being an important consideration. The new car will definitely require a relatively higher cost even if the damage is only minor damage. As the age of the car getting older, there is no harm in switching to Total Loss Only.
The amount of insurance premiums described above is called a pure premium. There are some risks that are not covered by All Risk car insurance. You can decide to expand your car insurance coverage. This coverage covers what might happen to the car caused by:
- Floods, typhoons, storms, and water damage.
- Earthquake / Tsunami.
- Third Party Liability.
- Driver Accident.
- Passenger Accident.
- Legal Responsibility to Passengers.
- Authorized Workshop.