Here's How To Insure A Used Car On Credit

Illustration. (Photo: Doc. Special)

JAKARTA - Owning a vehicle is considered to be one of the necessities that is now found in almost all homes, including four-wheeled vehicles. Given that without a car, daily activities become more difficult and less flexible.

With the importance of the existence of a car, many people are trying to be able to have a car even with limited funds. Even so, having a four-wheeled vehicle of course must be aware of the importance of protecting it with car insurance.

If you don't want to be caught up in usury, you can choose sharia car insurance because it is in accordance with Islamic law. Examples of the best sharia insurance products in Indonesia are Takaful sharia car insurance, ACA sharia automate, Garda Oto, and Chubb Sharia.

Meanwhile, for people who are worried about funding problems, the government has provided services in the form of credit. By using credit, both Islamic and conventional car loans, you can buy a used car at a more affordable price.

Even though it is a used car, many people choose to buy a car on credit because the value of the goods is getting lower over time. Buying a car on credit is indeed recommended for those who have limited funds, but it is important to pay attention to insurance issues.

In general, the lender will accompany the insurance on the purchased car. This is done so that the car has a protective guarantee as long as the credit period is still there.

Therefore, there are several things that need to be understood when buying a car on credit.

4 Things to Pay Attention to in Credit Car Insurance

Make sure the type of credit car insurance coverage is all risk

When you buy a used car on credit, usually the leasing company will include a car insurance package, so you no longer need to choose the type of insurance. You just need the down payment and the installments.

Well, if it's like this, the purchase price will certainly be more expensive than we expected. So how can you minimize expenses?

This is why it is important to understand the type of credit car insurance that you will buy. Starting from the price to the condition and quality of the car. Make sure there is no problem with the car engine.

Also make sure that the car you buy can cover all risks or any losses later, so you don't have to spend too much capital in the middle of the road.

In essence, even though the price is more affordable, don't let you not think again about the car loan offer.

Pay Attention If Interest is 0 Percent

Not paying interest is the most profitable thing, and everyone wants it. Even though it sounds like a lot of advantages, that doesn't mean you don't need to check or think twice when you receive this car loan offer.

It might be written as 0 percent, but it could be that the costs that were cut were actually charged to other components. So, be careful in choosing this offer.

Pay Attention to Car Loan Costs with Promos Offered

Don't be tempted by the offers on the market. Make sure that the promo offered is indeed worthy of your purchase and is equivalent to the quality of the car loan service.

As a buyer, you should be picky in the offers given. You can do this by looking at people's reviews of the promo.

Be Careful in Choosing the Type of Car Insurance

There are two types of vehicle insurance, there are all risk and Total Loss Only (TLO). Both have different services, with different prices.

TLO is cheaper because it will only cover losses greater than 75 percent of the value of the vehicle. It's like a case of theft or a badly damaged car. It is different with all risk who will be ready to cover any losses on a car.

To choose between these two types of insurance, you should choose the one that suits your needs and also your budget. Both have different advantages and disadvantages.

Better to Choose TLO or All Risk for a Used Car?

Actually this depends on the needs and desires. However, if you want to save more, choose TLO to choose a used car. This is because TLO will only guarantee cars that have been badly damaged or stolen, so the costs that will come out will not be much, considering that the cars purchased are also used cars.

Look for insurance companies that provide low prices, but with more benefits. Even though nowadays it is very difficult to find cheap ones, but it never hurts to try.