The cost of car insurance in Indonesia varies greatly, depending on several key factors.
First, there are two types of car insurance based on their basic coverage: Comprehensive and Total Loss Only (TLO).
Comprehensive covers minor damages such as scratches and dents, while TLO is only for serious damage (≥75%) or theft that results in the loss of the car.
Type of Car Insurance
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Coverage Description
|
|---|
All Risk
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Covers both minor and major damage, including dents, scratches, collision damage, theft, fire, flood, and other natural disasters. Ideal for new or high-value vehicles that need comprehensive protection.
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Total Loss Only (TLO)
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Covers total loss only when the vehicle is stolen or when repair costs exceed 75% of the car’s value. Recommended for older vehicles or cars with lower market value.
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Extended insurance coverage can also affect the cost of your car insurance.
Additional protection in the form of coverage for natural disasters, medical expenses or third-party claims can usually increase the price of your motor vehicle insurance.
The price of the car is another factor influencing the cost of car insurance. The Financial Services Authority (OJK) divides car insurance rates into five distinct categories, each determined by the price of the car.
Geographic location also plays a role, with the OJK differentiating rates based on regions: Sumatra and its surroundings, DKI Jakarta, West Java, Banten and other regions in Indonesia.
OJK Regional Tariff Classification
Region
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Included Provinces / Areas
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|---|
| Region 1
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Entire island of Sumatra and its surrounding islands
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| Region 2
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DKI Jakarta, West Java, and Banten
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| Region 3
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Central Java, Yogyakarta (DIY), East Java, Kalimantan, Sulawesi, Bali, NTT, NTB, Papua, etc.
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TLO (Total Loss Only)
Car Value
|
Rate
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|---|
Region 1
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Region 2
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Region 3
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IDR 125 million
|
0,20% – 0,39%
|
0,20% – 0,42%
|
0,21% – 0,43%
|
IDR 200 million
|
0,38% – 0,44%
|
0,44% – 0,53%
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0,38% – 0,50%
|
All Risk (Comprehensive)
Car Value
|
Rate
|
|---|
Region 1
|
Region 2
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Region 3
|
IDR 125 million
|
2,00% – 2,08%
|
2,47% – 2,72%
|
2,53% – 2,78%
|
IDR 250 million
|
2,08% – 2,29%
|
2,61% – 2,87%
|
2,69% – 2,94%
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Lastly, the age of the car also affects the cost of car insurance. Starting from the sixth year of the car's age, the insurance cost will increase. And at a certain age, insurance company may only offer TLO coverage for the car.
Considering all these factors, car insurance cost can vary greatly.
It is important to understand your specific needs and choose the main coverage and insurance extensions that suit you, as this will determine whether the total cost you have to pay is cheap or expensive.
Want to know how much insurance costs for your car? Check your car insurance price here!
