The rise of electric vehicles (EVs) on Indonesian roads is becoming increasingly evident. However, this shift in mobility brings a new challenge: the need for insurance protection tailored to the unique characteristics and specific risks associated with modern vehicles.
Suhandi Sumantri, Associate Director of Sales at PT Sompo Insurance Indonesia, emphasizes that motorists must be strategic when selecting vehicle coverage. The first step, he suggests, is understanding the basics of insurance protection.
Generally, there are two primary categories of vehicle insurance: Total Loss Only (TLO) and comprehensive insurance. TLO provides coverage specifically for severe damage—where repair costs reach or exceed 75% of the vehicle’s value—or in cases of total loss due to theft. Conversely, comprehensive insurance offers broader protection, covering partial damage from collisions, skidding, overturning, vandalism, fire, transit risks during official ferry crossings, and total loss.
“Choosing the right insurance should be based on your specific needs, the intensity of vehicle usage, and your financial situation. From an insurer’s perspective, factors such as the owner’s age, as well as the vehicle’s type and brand, are also key considerations in determining premiums,” Suhandi explained on Friday (May 1).
Aligning Insurance with Vehicle Type
Suhandi further reminds drivers that different vehicles carry distinct risks. While conventional internal combustion engine cars face risks primarily related to the engine and chassis, electric vehicles carry their highest risk in the battery. Therefore, it is crucial to ensure that an insurance policy explicitly addresses the specific requirements of the vehicle type.
Beyond basic coverage, motorists should consider supplementary benefits (riders), such as protection against flooding, riots, terrorism, earthquakes, personal accident coverage, and third-party legal liability. These add-ons should be selected based on the user’s environment, particularly for those living in areas prone to natural disasters like floods.
Value Over Price
When comparing options, Suhandi advises against choosing a policy based solely on the lowest premium. A cheaper price does not always equate to better value. Prospective policyholders should prioritize comparing benefits, such as coverage limits, the breadth of the authorized workshop network, and the ease of the claims process. Often, a slightly higher premium is a worthwhile investment for more comprehensive protection.
Furthermore, many policyholders overlook the fine print of their agreements. “Understanding the contents of the policy from the start is essential to prevent complications when filing a claim,” he noted. The policy document contains critical information regarding exclusions, claim procedures, and the specific rights and obligations of both the insurer and the insured.
Ensuring a Smooth Claims Process
It is equally important to clarify the claims process, as insurance companies will only honor claims that align with the terms of the policy. A standard process typically involves filing the claim, an assessment of the damage, formal approval, and the subsequent repair at an authorized workshop. A transparent procedure and a wide network of partner workshops are vital factors in ensuring a seamless experience.
Finally, a company’s reputation should never be ignored. Before committing to a provider, drivers should look for responsive customer service, a transparent track record in handling claims, and positive feedback from other policyholders to ensure they are making an informed decision.
Summary
When insuring an electric vehicle, owners must choose between Total Loss Only (TLO) and comprehensive coverage based on their usage, financial situation, and specific risks like battery damage. It is essential to verify that the policy specifically addresses the unique requirements of EVs while considering supplementary benefits such as protection against natural disasters or third-party liability. Prioritizing comprehensive benefits, such as an authorized workshop network and a transparent claims process, is more valuable than selecting a policy based solely on the lowest premium.
To ensure a smooth experience, policyholders should thoroughly read the fine print to understand all exclusions, claim procedures, and their contractual obligations. Evaluating the reputation of the insurance provider, including their track record in handling claims and the quality of their customer service, is crucial. Making an informed decision by weighing these factors helps prevent complications and ensures adequate protection for the vehicle.
