All-Risk Car Insurance Coverage: What Is Included

What Does All-Risk Car Insurance Cover in Indonesia?

What does all-risk car insurance cover? See which risks are included, which need add-ons, and how to estimate the premium with a worked example.

By Izkey Newsroom

Published March 1, 2019, 5:08 PM WIB 2 min read

All-risk car insurance is a rewarding option for insuring your car. Its coverage is broad, so this type of policy can free you from worrying about whatever might happen. All-risk car insurance does offer protection against many risks, but can it really cover everything without exception?

The general risks that car insurance covers, large or small, include damage from accidents and loss from theft.

In fact, some risks are not covered by all-risk car insurance. Examples are damage from natural disasters and riots. If you want every risk to be truly covered, you need extended coverage (add-ons), so your vehicle stays protected. Examples of extended coverage for all-risk policies include:

Floods, typhoons, storms and water damage.
Riots.
Driver accident.
Passenger accident.
Passenger Legal Liability (Tanggung Jawab Hukum terhadap Penumpang, TJHP).
Authorized repair shop.
Earthquake/tsunami.
Sabotage/terrorism.
Third Party Liability (TPL).

Damage or accidents from the risks above can happen, but you know best how likely they are for your own vehicle. If you feel that any of the extended risks above are likely to affect your vehicle, add that extended coverage to your insurance policy agreement.

Each car insurer may have different policies for setting premiums, including for all-risk car insurance. In general, the premium for all-risk car insurance is calculated from the insurance rate multiplied by the price of the car. The rate depends on the region and other categories. How do you calculate an all-risk premium? A rough example follows. Say your car is worth Rp206,000,000.

Example:

(Rate) 2.08% x (car price) Rp206,000,000 = Rp4,284,800

The all-risk premium above will come out higher in practice, since administration fees, policy fees, stamp duty and other charges must still be added. If you want to add extended risk coverage like the items listed earlier, your all-risk car insurance premium will go up by a few more percent.