Factors Affecting Your Car Insurance Premium

Terakhir Diubah : 11:26:19 - Kamis, 19 Juni 2025

Type of Coverage and Insurance Extension
The premium amount will be influenced by the type of coverage and also the insurance extension you choose. Generally, there are two types of coverage that you need to know, Comprehensive and Total Loss Only (TLO). With different types of insurance coverage available, the resulting premium is going to be affected. A comprehensive package with numerous features will naturally cost more than a lower-tier option. The same goes for optional extras, should you wish to add them on to your existing policy.
When buying insurance, it's crucial to carefully consider the coverage limits and ensure they align with your potential risks and needs.

Vehicle Age
The age of a vehicle is a key factor in determining car insurance premiums, both for comprehensive and Total Loss Only (TLO) policies. The Financial Services Authority (OJK) regulates which vehicles are eligible for comprehensive and TLO insurance in Indonesia.

Location
Motor Vehicle Insurance premiums are indeed affected by the area where the vehicle is primarily used. Insurance companies assess risks based on location, with areas experiencing higher accident rates, theft, or severe weather events often resulting in higher premiums.

Vehicle Usage
Car insurance premiums are indeed calculated based on risk, and vehicle usage is a significant factor in determining that risk level. Cars used for different purposes, like private, official, or commercial use, have varying levels of risk, and this is reflected in the premiums charged by insurance companies.

Always double check every policy guarantee and insurance premium offer according to your needs. Contact Sahabat Insurance marketing team for more info via WA 021-50508080.

index.Other News

Hail phenomenon in Indonesia

A number of areas in the city of Surabaya were hit by heavy rain accompanied by strong winds and large amounts of ice on Monday (21/2/2022) at around 14.50 WIB. So what causes hail? Hail occurs because there is a temperature difference in the clouds and the earth's surface is reached. So, the air temperature on the earth's surface is very hot while Cumulonimbus (CB) clouds in the sky have very low temperatures, which can reach minus 80 degrees. So that when it rains, the ice has not melted and there is hail. Then can a vehicle damaged by hail be covered by insurance? You have to re-check your vehicle policy, whether hail is a natural disaster covered by your Vehicle Insurance. For information about vehicle protection, contact us at 021-50508080.

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Sahabat Insurance Raising Insurance Literacy in Pontianak

Sahabat Insurance raising financial literacy through insurance education in Pontianak
The results of the 2022 survey show that Indonesia's financial literacy index reached 49.68 percent, an increase compared to 38.03 percent in 2019, but there are still many across the country who do not really understand the benefits of financial products and services, one of which is insurance.
Based on these conditions, Sahabat Insurance continues to consistently conduct education to increase insurance literacy and penetration with its annual Business Partners Workshop.
On April 22 2024, Sahabat Insurance held insurance literacy with Sahabat Insurance business partners in Pontianak. Mr Yohanes Rudy - Head of Representative Sahabat Insurance Pontianak has been selected as a distinguished speaker for the esteemed event. This workshop will help current leaders and high-potentials learn about car insurance benefits & coverages.The last session was filled with learning practices about how to protect our asset from risk, protection and implementing other structures that limit an individual's exposure to financial risk.

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Disaster Alert Bag!

The first preparedness that must be done is to know the mitigation steps for each type of disaster. You need to anticipate disasters by having the skills to evaluate situations quickly and take the initiative to protect yourself. You need to understand the dangers that lurk around the area where you live. Make a disaster anticipation plan with your family, and do joint exercises to implement the plan. This plan should include identifying assembly points, knowing important contact numbers, evacuation routes, and locations to turn off water, gas and electricity. In addition to understanding disaster mitigation, preparation that is no less important is preparing a Disaster Preparedness Bag (TSB). Disaster Alert Bag is a bag that must be prepared to anticipate the occurrence of disasters or other emergency conditions. Criteria for Disaster Preparedness Bags Disaster Preparedness Bags are our way to survive when aid has not arrived or is being evacuated to other places. Disaster Preparedness Bags must be made of water-resistant or waterproof materials. The contents of this bag are basic necessities for at least three days. In addition to food, drinks, medicines, clothes, flashlights, powerbanks, batteries, cash and masks, also prepare important documents such as ID cards, diplomas, birth certificates and other documentation in preparation if you have to leave the house immediately.

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What Is an Insurance Policy Period?

An insurance policy period is the time frame during which an insurance policy is effective. Based on chapter IV, article 7 in INDONESIAN MOTOR VEHICLE INSURANCE STANDARD POLICY, it is a condition precedent to liability under this policy, that any premium payable shall have been paid off and actually received in full by the Insurer, in the event of:

insurance period of 30 (thirty) days or more, then settlement of premium payment shall be conducted within a period of 14 (fourteen) calendar days as of the date of inception of this Policy;

such insurance period is less than 30 (thirty) days, settlement of premium payment shall be conducted at the time of issuance of Policy.

In case the Insured fails to fulfill the liabilities as referred to in paragraph above, this Policy shall be automatically terminated without issuing cancellation endorsement starting from the expiry of the grace period and the Insurer shall be discharged from any liability there from.

For more info about Sahabat Insurance call 021-50508080.

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