Indonesian people are increasingly aware of the importance of insurance, especially car insurance for users of four-wheeled vehicles. This is of course encouraging news.

Of the two types of car insurance that are often offered by the best insurance companies, namely All Risk insurance and TLO (Total Lost Only) insurance, there is often a misunderstanding from the public about this protection. Let's call it a myth in car insurance.

What are the myths that are often believed by the public, especially prospective customers, even policy holders about car insurance? Myth or fact? Check out the following. 

Myth or Fact: All Car Risks Will Be Covered with All Risk Car Insurance

All Risk car insurance policy holders, or more prospective customers who will choose this comprehensive insurance, assume that this insurance will cover all risks that threaten their car. What are all the threatening risks? Call it: riots, mass riots, terrorism, sabotage, to natural disasters, such as landslides and earthquakes.

If this assumption is flattened for all insurance companies, this is clearly a MYTH. Take a look at the All Risk car insurance policy that you have. You will find exceptions to these risks. It's called All Risk insurance, but not all risks are covered.

While at the Malacca Insurance Company, you can extend your coverage with additional coverage for loss and/or damage due to: strikes, riots, riots, acts of terrorism, sabotage, natural disasters. Even wider.

Myth or Fact: Used Car Prices Rise Because of All Risk Insurance 

Maybe you have experienced, when you are about to buy a used car, the car owner proudly informs that the car he is going to sell is equipped with All Risk car insurance. Capital confidence and conditions are used to inflate the selling price.

This assumption is clearly a MYTH. All Risk car insurance holders need to understand that if the car equipped with All Risk insurance changes hands, the new owner will no longer be able to enjoy the protection of his car. Yes, after the insured car changes hands, the insurance will no longer be valid. Except, the old owner and the new owner report to the insurer that the car has changed hands, and the old owner agrees to transfer the insurance they hold to the new owner. In this case, the insurer will endorse the insurance policy on behalf of the new owner.

Myth or Fact: Double Insurance Claims with More Than One All Risk Car Insurance Policy

Many All Risk car insurance holders think that by having more than one insurance policy for the same object of coverage (the same car), they will have the opportunity to be able to submit a car insurance claim more than once. It's a MYTH!

If the purpose of having multiple All Risk policies is just to be able to claim multiple times for the accident on the same car, it's clearly in vain. Why? The insurance company will of course ask you to show the original purchase receipt when submitting a claim. Can you show it multiple times?

Myth or Fact: TLO Insurance Replaces a New Car

TLO insurance guarantees customers if their car is damaged with a minimum repair value of 75% of the purchase price. TLO insurance also covers the loss of the car due to theft. In this case the insurance company says it is ready to replace 100% of the loss. Well, the readiness for 100% replacement is often assumed to be wrong. Insurance customers assume they will receive a new car replacement. This is a MYTH.

In fact, the 100% replacement is based on the price of the car when it was first purchased. If a new car is still available on the market at the exact same price as the purchase price, the customer can receive a new car. The thing to note also at the beginning is the agreement to determine the price of the car. Most policyholders assume that the pricing of the car is based on the price stated on the purchase receipt, which means that the price is the same as when purchased. Though it could be different.

From a number of these assumptions, it turns out that all of them are myths. Are you one of those who believe in these myths?