All Risk (Comprehensive) Insurance: Definition and How to Claim It!

What is All Risk (Comprehensive) Car Insurance?

All Risk car insurance or Comprehensive car insurance is a type of car insurance that provides comprehensive protection, except for exclusions stated in the policy. There are also optional coverage extensions that can be chosen according to your needs, including damages due to accidents, theft, and natural disasters.
 

For example, if your car experiences a severe accident, Comprehensive (All Risk) insurance will cover the repair costs, including minor damages such as dents or major damages that require the replacement of key components. Its main advantage is its ability to provide maximum protection, making it the best choice for those who want to ensure their vehicle is fully covered.

However, keep in mind that All Risk car insurance premiums tend to be higher due to the broader coverage. In other words, All Risk car insurance provides full security, comes with a higher premium cost, but offers peace of mind and comprehensive protection against various risks that your vehicle may face.

Reasons Why You Should Have All Risk Car Insurance

In an era of increasing mobility, having car insurance has become a necessity for every vehicle owner. Car insurance provides coverage if your car suffers damage. More than just coverage, vehicle insurance also offers convenience for vehicle owners.
 

Buying car insurance is also very easy! A car can be insured by purchasing an insurance policy that suits your needs. But what are the reasons for having All Risk car insurance?
 

Here are some reasons why you should have All Risk car insurance:

1. Comprehensive Car Insurance

All Risk insurance is a type of vehicle insurance that provides compensation guarantees or repair costs for partial or total loss/damage to a vehicle due to falling objects, fire, malicious acts, theft, robbery, collisions, impacts, or other traffic accidents.
 

With All Risk car insurance, even minor and partial damages can still be claimed and repaired at workshops partnered with the insurance company.

2. Additional Protection for Personal Accidents

Basically, All Risk car insurance not only provides protection for the vehicle but also includes extended coverage, namely personal accident insurance.
 

So, if an accident occurs, both the driver and passengers will be covered for medical expenses.

3. Third-Party Legal Liability

All Risk car insurance coverage provides comprehensive protection for your vehicle. Imagine this situation: you’re driving, and suddenly, an accident happens.
 

That’s definitely an unwanted moment, right? This is why having All Risk car insurance is essential, as it provides complete protection against unexpected events. In addition to covering personal protection in an accident, this insurance also ensures financial compensation if the incident involves third parties or their property.

4. Protection Against Theft and Damage

Have you ever worried about the risk of vehicle theft, especially for your new car? Well, All Risk car insurance offers extra protection against such criminal acts.
 

However, there are a few things to remember. All Risk insurance coverage only applies to damage or loss that occurs to your car itself.
 

For example, if a thief breaks your car window and steals a laptop inside, All Risk insurance will cover the cost of repairing the window.

5. Repairs at Partnered Workshops

This is another reason why having All Risk car insurance is very beneficial. You will receive repair services at the insurance company’s partnered workshops.
 

Another interesting advantage is a 6-month warranty from the partnered workshop. However, not all insurance providers offer this. This means that after your car is repaired, if any issues arise within 6 months, you can request additional repairs at no extra cost.

6. Protection Against Various Risks

With this type of insurance, you will receive extensive protection against various risks that may occur to your car. All Risk car insurance not only covers losses due to fire but also includes other risks such as floods and natural disasters.
 

Furthermore, you can get additional protection with All Risk car insurance, including compensation for losses caused by natural disasters like storms, earthquakes, volcanic eruptions, and tsunamis.
 

You also have the option to add vehicle protection against damage due to riots, with compensation coverage for damage or loss caused by riots, strikes, work stoppages, brawls, uprisings, and/or revolutionary coups.

7. 24/7 Emergency Assistance

You can also get additional insurance benefits from All Risk car insurance, such as emergency services that are available 24/7 when your car encounters issues on the road.
 

This service provides assistance if your insured vehicle gets into an accident or breaks down, whether due to a weak battery, running out of fuel, a flat tire, or even if you accidentally lock your keys inside the car.

8. Financial Security

With All Risk car insurance, you can drive with peace of mind. All repair costs for your vehicle will be covered by the insurance company, so you don’t have to worry. This way, your savings and finances remain secure.
 

And most importantly, you can finally make your dream family vacation abroad a reality without stressing about financial issues!

What Does All Risk Car Insurance Cover?

All Risk car insurance covers various risks and losses that a motor vehicle may experience. Here are some of the key aspects typically covered by All Risk car insurance:

1. Accident Damage

Covers repair costs due to an accident, including partial or total damage to the vehicle.

2. Theft and Malicious Acts

Provides protection against vehicle loss caused by theft or robbery.

3. Fire

Covers the risk of damage or loss of the car due to fire.

4. Collision with Other Objects

Covers repair costs if the vehicle collides with another object or structure.

5. Floods and Natural Disasters

Includes losses due to floods, earthquakes, volcanic eruptions, and other natural disasters.

6. Vandalism

Covers damage caused by deliberate acts of destruction by irresponsible parties.

7. Third-Party Liability Protection

Provides legal liability coverage for bodily injury or property damage caused by the insured vehicle to third parties.

8. Personal Accident Coverage

Covers medical expenses for injuries sustained by the driver and passengers of the vehicle.

9. Coverage for Additional Accessories

Includes protection for additional accessories or modifications installed in the vehicle. It is essential to carefully read the policy terms and conditions, as coverage may vary between insurance companies. Certain special coverage extensions may also be offered based on the needs and preferences of the policyholder. Therefore, purchasing All Risk car insurance is a must for vehicle owners who want comprehensive and complete protection.
 

Before making a decision, choose a car insurance that fits your needs and budget.

What Is the Difference Between All Risk and TLO Insurance?

Before deciding on a car insurance product, it’s important to understand the differences between All Risk and TLO insurance.

All Risk Car Insurance

If you purchase an All Risk car insurance policy, you will receive comprehensive vehicle protection against all risks. In other words, this insurance covers claims for all types of damage.
 

From minor damages such as scratches or dents to major damages like collisions that alter the car’s body shape or even theft—everything can be covered according to the terms stated in the policy.

Read Also: Differences Between TLO, All Risk, and TPL Insurance

TLO Car Insurance

TLO insurance, or Total Loss Only insurance, provides special protection focusing on situations where the car suffers a total loss. A total loss occurs if the vehicle’s damage reaches 75%, as agreed upon in the policy. Imagine your car gets into a serious accident or is stolen, and the cost to repair or replace it exceeds its market value. This is where TLO insurance plays a crucial role.
 

However, keep in mind that this type of insurance does not cover partial damage or losses from minor accidents. For instance, if only certain parts of the car, such as the bumper or door, are damaged but still repairable, TLO insurance may not provide coverage. Therefore, carefully reading the terms and conditions in a TLO policy is essential.
 

If you want more comprehensive protection, consider choosing All Risk car insurance, which covers both partial damages and total losses.

Choosing Between All Risk and TLO Insurance

The decision between All Risk and TLO car insurance should be carefully considered, ensuring that your chosen insurance policy aligns with your needs. Additionally, car insurance policies in Indonesia vary between providers, so make sure you fully understand the terms and conditions stated in your policy.
 

With the right insurance, whether your car suffers minor damages or significant losses, you can have financial protection in place. When you file a car insurance claim, the insurance company will assess the damage and determine the necessary repair costs covered by your policy.
 

Tip: Choose an affordable All Risk car insurance premium that still provides adequate protection for your vehicle.

How to Claim All Risk Car Insurance

Filing an All Risk car insurance claim involves several important steps. To ensure a smooth and successful claim process, follow these steps carefully:

1. Report the Claim

If your car experiences damage or an issue, report the claim to the insurance company immediately. Find the claim contact details in your policy document.

2. Document the Damage

Take clear photos of the car’s damage, obtain a police report if necessary, and gather other supporting evidence to strengthen your claim.

3. Contact the Authorities

If a third party is involved in the incident, notify the relevant authorities and obtain an accident report to support your claim.

4. Fill Out the Claim Form

Complete the claim form provided by the insurance company, ensuring all details about the incident are filled out accurately.

5. Coordinate with the Surveyor

The insurance company may send a surveyor to assess the damage. Schedule an assessment appointment and coordinate with them.

6. Approve the Repair Estimate

After the surveyor evaluates the damage, the insurance company will provide a repair cost estimate. Review and approve the estimate before proceeding.

7. Repair at Partnered Workshops

If possible, carry out the repairs at the insurance company’s partnered workshops to ensure quality and guaranteed service.

Final Tips:

• Carefully read your insurance policy’s terms and conditions.
   

• Follow the insurance company’s guidelines to facilitate a smooth claim process.
   

• Ensure all required documents are complete to avoid delays in claim approval.

How to Calculate All Risk Car Insurance Premiums

According to OJK (Financial Services Authority of Indonesia), All Risk car insurance premiums are calculated based on:
 

• Formula: Insurance rate × Car price
   

• Factors affecting premiums:
   

  • Region of vehicle registration
     

  • Type and price of the car

Regional Classification for Premium Calculation

Indonesia is divided into three regions, each with different insurance premium percentages:
 

• Region 1: Sumatra and surrounding islands
   

• Region 2: DKI Jakarta, West Java, and Banten
   

• Region 3: All other areas outside Regions 1 and 2

Car Price Categories for Insurance Rates

Car price categories are divided into five groups:
 

• Category 1: Up to Rp125 million
   

• Category 2: Rp125 million – Rp200 million
   

• Category 3: Rp200 million – Rp400 million
   

• Category 4: Rp400 million – Rp800 million
   

• Category 5: More than Rp800 million
   

Each category has different premium rates based on the region and insurance provider.
 

Here are some questions about insurance that you should know before choosing All Risk car insurance:

Does a Car Insurance Cover All Risks?

Not all risks are covered by insurance. Each policy has limitations and conditions, such as:

✅ Covered:

• Damage, loss, or theft of the vehicle
   

• Accidents and third-party liabilities (if included in coverage)

❌ Not Covered:

• Illegal activities involving the vehicle
   

• Use of the car for unauthorized purposes
   

Additionally, the car’s age affects insurance coverage:
 

• Newer cars often receive better coverage and lower premiums
   

• Older cars may have more restrictions and higher premiums

How to Choose the Right Car Insurance?

Consider the following when selecting between All Risk and TLO insurance:
 

• Your car’s age and value
   

• Your driving habits and risks
   

• Your financial budget

How to Ensure a Smooth Insurance Claim?

Follow these steps to ensure a hassle-free claim process:
 

• Report claims immediately to the insurance provider
   

• Follow the insurance company's claim procedure
   

• Provide complete and accurate documentation
   

By following these steps, your claim can be processed efficiently, ensuring that eligible damages are covered by the insurance.

Conclusion

Having car insurance, especially All Risk car insurance, is not just a requirement but also a smart financial decision to protect your vehicle from various risks. Whether it’s minor damage like scratches and dents or major incidents such as theft and total loss, an All Risk policy provides peace of mind and financial security.
 

Before purchasing an insurance policy, it is essential to carefully read and understand the terms and conditions. Each insurance provider may offer different coverage options, so selecting the right policy that suits your needs and budget is crucial. Mistakes in choosing a policy could result in higher costs or insufficient protection when you need it the most.
 

If you frequently drive in high-risk areas or simply want full coverage for your car, All Risk insurance is the best choice. While the premium may be higher than TLO insurance, the extensive coverage ensures that your vehicle is protected against various risks, from accidents and theft to natural disasters and third-party liabilities.
 

Do not delay securing your vehicle’s protection. The sooner you have the right insurance, the better prepared you will be for unexpected situations. Take the time to compare different insurance policies and choose the best All Risk car insurance that meets your needs.
 

Get started today and find the best All Risk insurance plan for your vehicle. Take action now to ensure a safe and worry-free driving experience for the future.