Pay attention to the differences in Car Insurance with a Car Guarantee

Know the difference between Car Insurance and Car warranty

Most people might think that insurance and guarantees on cars are the same thing. Why is it the same? Yes because the same function is to protect and provide comfort for the owner. But besides being equally true the two also have differences, what are the differences? following the review.

A. Definition of Insurance and Car Guarantee


The form of financial protection provided by an insurance company where the person who submits insurance acts as the insured and the insurance company as the guarantor.


The form of guarantee provided by the producer company for goods or products produced from worker errors and material failures within a certain period, usually 3-5 years.

B. How to get protection


Register with an insurance company. Insurance protection is obtained after you buy it in an insurance company, by paying a premium every year.

The first thing that can be done is to choose an insurance company that offers protection as desired, then just submit the application to the company.


Immediately obtained when buying a new car. Protection from the warranty is obtained immediately when you buy a car.

Generally car manufacturers provide a form that must be filled in based on personal data and a car purchase note to register a car warranty. Then, you will get a warranty card used to claim later.

C. What protection is obtained?


All Risk Protection and Total Loss Only (TLO)

There are two types of insurance, namely All Risk and Total Loss Only (TLO)

  • All Risk will bear all the risks that occur in the car from light damage, heavy damage to loss. In addition, there is an expansion in insurance protection that can be used as additional options such as protection from riots, natural disasters, terrorism, sabotage, bodily injury or death to passengers, passenger responsibility and third party responsibilities

  • Total Loss Only (TLO) only covers severe car damage which causes damage to 75% of the car and also carries loss of car


Protection of Machinery and Parts

Provide free maintenance for a certain amount of time which includes free light service, oil change and so on.

  • does not apply to consumable components such as brake lining, clutches, batteries, tires and others.
  • Do not risk losing.

D. Costs Needed


The costs vary

Costs paid in insurance are called premiums which will be paid in a certain period, for example monthly or annually.

Factors that influence the amount of insurance premiums are types of insurance, expansion of insurance and insurance company policies.

The period of time can be regulated, according to the agreement written in the insurance policy.



No additional costs are needed to get a warranty because when buying a new car, the warranty can be enjoyed immediately.

The period is around 3 to 5 years.

Some car manufacturers have facilities to extend the warranty period. Of course, to enjoy this extended after-sale facility, you will be charged an additional fee.

E. How to claim


Claim to insurance company

  • Report what risks are experienced
  • Make a report from the nearest police if you have an accident or loss that can be evidence of filing a claim.
  • Complete the required documents, for example, ID card, driver's license, vehicle registration, insurance policy and the completed and signed claim form.
  • The car will be handled by the insurance company's partner workshop


Claim to the official dealer of the car manufacturer company

  • Bring the car to the official workshop for repair
  • Bring a warranty card or other proof
  • Also make sure that your car is still under warranty

F. Things to Avoid

There are several things that must be considered for insurance and guarantees to be considered and avoided to get protection from insurance and guarantees. This is because there are several things that can make insurance and warranty forfeited.


  • The policy period expires.
  • Driver's license validity period expires.
  • Drive a vehicle under the influence of liquor or drugs.
  • Accidentally eliminate the vehicle.


  • Modify audio devices
  • Modify tires
  • Modify electricity

Understand the Benefits and Differences of Both Protection

The fundamental difference between insurance and warranty lies in what it protects. Insurance is more towards the risk caused by the owner while the protection guarantee is more towards the engine and spare parts of the car which are likely to be damaged when operating and not due to user error. This means that the guarantee guarantees the completeness of the car contained in the insurance letter to be able to keep working. That way, you already know if the car suddenly breaks where to claim.

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