What is an Insurance Policy?

An insurance policy is a contractual agreement between two parties in insurance, namely the insurer and the insured, which contains all the rights and obligations between each of these parties. For both parties between the insured and the insurer, the insurance policy has its own functions:

Policy functions for customers who use insurance (the insured):

Written proof of insurance coverage for various risks and compensation for losses that may occur to the insured, where the loss is written in the policy is known as “policy” in English.

Become proof of premium payment given to the insurance company, as the insurer

Make sure to maintain sincerity to claim the insurer, if negligent or does not fulfill its responsibility to provide guarantees.

The function of the policy for the insurance company (guarantor)

The insured can prove that they have paid their insurance premiums by providing proof or receipts.

You will find evidence of guarantees given to the insured that they will be compensated for any losses they may suffer.

Become the most convincing and authentic evidence to reject claims for compensation or claims submitted by the insured, if the cause of the loss does not meet the requirements of the policy owned

How Much Insurance Costs?

In the United States, auto insurance rates vary depending on factors such as the driver’s age, driving history, and geographic location. Meanwhile, in Canada, some insurance companies offer discounts on purchasing car insurance if the driver has gained several kilometers or years of driving experience. Some insurance companies also offer reduced rates for drivers who are older, who have been driving longer, or who live in less congested areas. This discount is usually only available to customers when they renew their policy.

The AI ​​Insurance Savings Calculator is a web-based tool that has been designed to calculate potential savings by considering the main factors that affect auto insurance rates. This calculator is very easy to use and can be accessed from any device with internet access.

2 Types of Vehicle Insurance coverage

There are two types of motor vehicle insurance coverage options, namely Comprehensive and Total Loss Only.

  1. Comprehensive (All Risk), All Risk Insurance is a type of loss insurance that protects all kinds of risks or damage that occurs in motorized vehicles. All Risk Insurance covers major and minor damages as long as they are not excluded in the insurance policy. Some examples of losses covered by All Risk insurance are damage to the body of a motorized vehicle such as scratches, dents, etc., to greater damage, including a vehicle accident which results in damage to the vehicle body.
  2. While TLO, as the name implies, TLO (Total Loss Only) insurance is insurance that provides protection for cars from the risk of loss. TLO covers the risk due to theft and damage if the repair costs are estimated to be equal to or exceed 75 percent of the value of the vehicle immediately before the loss. Losing a car due to theft by an irresponsible person is also considered a total damage, so TLO insurance will cover losses for this loss.


Vehicle Insurance is a type of insurance coverage that provides protection to drivers and their vehicles. This is a necessary requirement for anyone who drives on public roads. It is very important for us to have vehicle insurance. Because, we don’t know what will happen in the future, in other words, unlucky days are not in the calendar. Therefore, it is highly recommended to have Vehicle Insurance with the Comprehensive (All Risk) type because, with all risk insurance, any damage will be covered by the insurance.

This article will discuss the different types of coverage that you need to know in order to make the right decision when buying car insurance.

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