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Insurance is a term used to refer to an action, system, or business where financial protection (or financial compensation) for the soul, property, health and so forth get a replacement from unpredictable events that can occur such as death, loss , damage or illness, which involves paying premiums regularly within a certain period of time instead of a policy that guarantees such protection.




The term “insured” usually refers to everything that gets protection.

Basic Insurance Principles

In the insurance world there are 6 basic principles that must be met, namely:

• Insurable interest, namely the right to insure, arising from a financial relationship, between the insured and the insured and legally recognized.

• Utmost good faith, which is an action to disclose accurately and completely, all material (material fact) facts about something that will be insured whether requested or not. The meaning is: the insurer must honestly explain clearly everything about the extent of the terms / conditions of insurance and the insured must also provide clear and correct information on the object or interest insured.

• Proximate cause, which is an active, efficient cause that causes a chain of events that results in an effect without the intervention of one who starts and actively from new and independent sources.

• Indemnity, which is a mechanism by which the insurer provides financial compensation in an effort to place the insured in the financial position he had just before the loss occurred (KUHD article 252, 253 and affirmed in article 278).

• Subrogation, namely the transfer of claim rights from the insured to the insurer after the claim is paid.

• Contribution, which is the right of the guarantor to invite other guarantor who both bear, but do not have the same obligation to the insured to participate in providing indemnity.

Type of Insurance

1. Life Insurance

This type of insurance is known to provide financial benefits to the insured for his death. The payment system for this type of life insurance varies. There are insurance companies that provide payment after death and others can allow the insured to claim funds before his death.

Life insurance can be purchased for self-interest and on behalf of the insured alone or purchased for the benefit of a third person. Even life insurance is also known to be bought in other people’s lives. As an illustration, suppose a husband can buy life insurance that will provide benefits to him after the wife’s death. Parents can also insure themselves against the child’s death.

2. Health Insurance

This type of insurance is also quite well known by the people of Indonesia. Health insurance is an insurance product that handles the health problems of the insured because of an illness and covers the cost of the treatment process. Generally, the cause of the insured’s illness which can be borne by the insurance company is injury, disability, illness, until death due to accident.

Health insurance is also known to be bought for the benefit of the insured or the interests of a third person. Private health insurance companies such as Prudential, Allianz, AIA, Cigna, and Manulife are among the big names that provide a variety of insurance products to suit the needs of the Indonesian people and are widespread throughout the world.

3. Vehicle Insurance

The most popular vehicle insurance in Indonesia is a type of car insurance that focuses on injury coverage to other people or against damage to other people’s vehicles caused by the insured. This insurance can also pay for the loss or damage to the insured motor vehicle.

Vehicle insurance is one of the general insurance products. This type of insurance had become a boom when the riots broke out in May 1998 because the incident made people’s interest in protection ownership for private vehicles increase dramatically.

The financial site Cermati.com has partnered with well-known insurance companies in Indonesia so you as a customer can compare the best car insurance products with low rates.



4. Education insurance

Dizziness with children’s education costs? This type of insurance will help you overcome. Education insurance is the best alternative and a solution to ensure a better life, especially in children’s education assets. The cost of the premium that must be paid by the insured to the insurance company varies according to the level of education to be obtained later. Understanding the importance of using education insurance for children is now a matter of concern for parents. The high cost of education and other conditions that exacerbate the economy such as the weakening of our currency against the US dollar affect the cost of education for children later. Realizing that this clearly will burden parents, it is not uncommon for parents now to choose to have education insurance. So, education insurance can be classified as the types of priority insurance too, right? You will certainly be helped in taking care of the child’s future.

5. Travel insurance

Maybe for those of you who often travel or travel are familiar with this type of insurance. The various types of insurance also create a variety of protection for travelers. Overall, the function of travel insurance is not much different from the ordinary insurance function as a form of protection for customers with a short period of time that is for the premium buyer to travel until returning home. Benefits and protection that will be gained from having travel insurance include obtaining protection and coverage for accidents that affect premium buyers, personal accident benefits, dependents for emergency medical expenses, repatriation of bodies, medical evacuation, to protection of luggage that has a risk of being lost. or damaged.

6. Business insurance

For those of you who have a business field, this type of insurance is important to consider. In addition to the types of insurance that involve individual protection, insurance that protects businesses is also needed. Business insurance is a protection service against damage, loss and loss in a large amount that may occur in one’s business. This insurance provides compensation for damage caused by fire, explosion, earthquake, lightning, flood, hurricane, rain, collision, until riots. Insurance companies usually offer a variety of benefits from business insurance such as protection of employees as business assets, investment and business protection, comprehensive life insurance for all employees, to health insurance protection packages for employees.

Advantages of Insurance Companies

Insurance companies also benefit from investment. This is obtained from the investment premium received until they have to pay the claim. This money is called “float”
Insurers can get profit or loss from float price changes and also interest rates or dividends in float. In the United States, property losses and deaths recorded by insurance companies were US $ 142.3 billion in the five years ended 2003. But total profits in the same period were US $ 68.4 billion, as a result of the float.

Insurance Refusal

Some people consider insurance to be a form of betting that applies during the policy period. The insurance company bet that the buyer’s property will not be lost when the buyer pays the money. The difference in fees paid to insurance companies against the amount they can receive if an accident occurs is almost the same as if someone bet on horse racing (for example, 10 to 1). For this reason, some religious groups including the Amish avoid insurance and depend on the support received by their community when disaster occurs. In communities where close and supportive relationships where people can help each other to rebuild lost property, this plan can work. Most people cannot effectively support the system as above and this system will not work for big risks.






A guide to the total loss process with examples of two completely different vehicles.

Post Author: admin

27 Replies to “Totaled Vehicle? Tips on How to Negotiate the Insurance Payout | My Insurances Info”

  1. Does this work with uninsured motorist coverage with a cap of 3500? I was hit by a stolen vehicle, insured was not present in the vehicle, totaled my car. There denying the claim and all i have to cover my total loss is uninsured motorist. I have a 2012 TOY Yaris thats worth at least 6400

  2. An independent appraisal is key if your car is older like a Supra, or any car you restored or modified. If the accident wasn't your fault you need to be made whole again. I know someone who received 108k for his Subaru that was extensively modded. The first offer was 30k insurance thought they didn't have to pay for mods. Keep those receipts everyone.

  3. while driving, home from a trip my car engine stopped working, which resulted to smoke. I called AA a recuse van, called my insurance company. they said since its an old car 2007, its going to be a right off. now my insurance excess is 700 pounds. and they claim they will send an engineer  to pick it up have a look at it and give me a price offer.  now my prices offer according to them is same price it goes for in my area. please advice me.

  4. Could anyone give honest advice. I got into a fender bender… I had no insurance on my vehicle Geico put a lien on my license saying is have to pay 20,000 to get it back…. now I'm a single mother of two kids how can I…

  5. I have a Mercedes 2010 and miles 126073 and I have hail damage so they total my car out. She said $7911 and I said Thats not a good price and she gave me $8376. I only hail damage. My car is running good! I have 2 car payments left and I ask about paying my car back she it will cost 3572.36. They will take out my last payments 1361 from 8376. I'm not feeling good about that. What should I do?

  6. Thank you for the tips. My mustang was totaled in a rear end collison 3 days after I bought the damn thing. It was pristine, winter stored, no rust.
    I'm going to take these tips and hopefully come out on top. 👍

  7. Wanna personally thank you for your video. Gave me the confidence to get a 3K gain on my total loss settlement on my wrecked car. Based on ur vid I went to various used car websites and pretended I wanted to buy the same car with the first low settlement amount and realized that I couldn’t without haggling price with seller. So I made an excel sheet showing 5 different sellers of similar cars and showing the asking prices and asked for a 3K increase and I got it. I think the coolest and most important u said is, always start by saying no to the first offer. Thumbs up to putting ur video out there for others.

  8. My BMW 2011 335i convertible was total and KKB third party value around 15000-18000, but it very hard to buy it,
    And buy a car like this repair cost more than 2300 dollars.
    So what the price I should except?
    I except 23000 dollars.
    And the strategy is that called them it’s hard to buy, and the dealer offers a higher price and refused to low it.

    Second, tell them it’s cost a lot to repair.
    When I refused their offer twice, they will give a reasonable offer.
    Right?

  9. I have a question… when I filled out my documents, I said my car was worth 2,500. I have spent a lot of money on her in the past 2 years of ownership. Should I expected more than 2.500. My car has also appreciated in value if anything. Thanks for the video

  10. the adjuster im dealing with just wont budge. its been months and by his balls wants me to take 3k. which its only the cost for the of the costum leather interior. he doesnt wanna give me anymore

  11. Thank you so much for this!! I just went through this and I wanted to know what to do when I asked these questions. I appreciate you posting this video and informing others even though you don’t have to.

  12. this is so darn informational THANK YOUUU! i am going to be con tacted today hopefully for a price they want to give me and its taken progressive 1 week to get everything finalized….they are so slow. do not get progressive.

  13. had a hail storm recently and my vehicle is messed up, hoping i can fix it and they don't total it…problem is same thing happened last year but it was repaired.

  14. I got into my first ever fender bender and I'm 25 and also live in Oregon (Eugene)…I was soooo nervous, my hands were shaking when I gave my information to the other people involved. I still am shaking after it happened…most of the damage was done to my car. Only going 5 mph…both stopped at a red light.

  15. Some guy rear-ended me with my family in my car we all got hurt and they want to declare my car a total loss because it has 200, 000 miles is a 09 Honda Accord and it looks and nice I keep it nice new Transmissions with 66, 000 miles I should be hearing from thim tomorrow whatever they throw at me I'm going to say no my kids love this car

  16. Thanks! I was hot from behind by a car driving too fast in the rain on the interstate yesterday. I was in the slow lane going 60 on cruise control in a 70, which is reasonable with the rain. My Impala got grazed a little on the back, and a little on the side. The other vehicle had a lot more damage because it went off the road. It is a 2001 3.8 liter V6 Impala with 228,000, but very well taken care of in excellent condition. I'm worried it will be totaled, but not ready to buy anything else until I get more money's worth. My question is, is there a way of negotiating a totaled status to be able to continue driving?

  17. I wonder if my insurance will total or repair my 2012 Toyota Yaris LE automatic with 140,000 miles. The current repair bill at the body shop is $5,600! The adjuster estimated $1,200 of damage, but my body shop looked and saw there was even more damage. The only thing is I still ower $3,500 on it. I'm still waiting on what my insurance will say. It shouldn't be too long now. I should know in a day or two. What should I do if it's totaled? I don't think they'll wanna pay $5,600 of parts, and labor on a 6 year old car.

  18. Thank you for the informative video, I certainly learned a lot. I recently purchased a 2017 Honda Civic with 14k miles and it is a salvage car but it has a rebuilt title that I created when I bought it out. I got rear ended recently and I am in the beginning process of talking to my insurance. I believe the car is totaled but not sure yet still waiting to hear back. In this case, will my insurance look at the actual value of the car as if it wasn't salvaged or will they lower its value since it is salvaged with a rebuilt title? How can I get a fair settlement? Please help!

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