5 Myths Expats Should Stop Believing - Car Insurance in Indonesia
- Dewi Putri
- Mar 15
- 2 min read
Updated: Mar 17
Car insurance can feel confusing, especially in Indonesia where rules, coverage types, and road risks may be very different from your home country. At BPI, we hear a lot of assumptions and misunderstandings — so let’s clear things up.
Here are 5 of the most common car insurance myths we hear… and the truth behind them.
Myth 1: “I drive safely, so I don’t need car insurance in Indonesia".
Even if you're the safest driver on the road, you can't control other drivers, weather, animals, or bad roads. Accidents can still happen — and when they do, repair costs or liability can cost you millions.
The truth: Car insurance isn’t about how you drive — it’s about protecting yourself from everything else. And in Indonesia, road conditions and traffic can be unpredictable.
Myth 2: “Third-party liability isn’t necessary.”
Many people skip Third-Party Liability to save money — but this is one of the most important protections. If you cause damage or injure someone, you’ll be legally responsible for all costs.
The truth: Third-party claims can be more expensive than damage to your own car. This coverage can protect you from financial disaster.
Myth 3: “Insurance companies never pay claims anyway.”
This is a big one — and we understand where it comes from. But the truth is, when your documents are in order and you follow procedures, claims are approved. And with BPI, we handle the process for you.
The truth: Over 90% of claims through BPI are successful — because we prepare everything properly, follow up, and communicate clearly with the insurer.
Myth 4: “Insurance is too expensive in Indonesia.”
Actually, insurance here is very affordable. Basic TLO coverage starts from around IDR 1 million per year. Even Comprehensive coverage for most cars is a small price compared to the cost of accidents, repairs, or legal issues.
The truth: Insurance is cheaper than you think — and it saves you from major unexpected expenses.
Myth 5: “Car insurance is too complicated — I don’t understand any of it.”
Many people avoid getting insurance simply because it sounds overwhelming. Terms like TLO, Comprehensive, Third-Party Liability, and Acts of God can feel like a different language.
The truth: It’s actually much simpler than it sounds — especially with BPI by your side. We explain everything clearly, help you choose the right option, and only recommend what you actually need. No jargon, no confusion — just the right protection.
Don’t Let Myths Put You at Risk
Getting the right car insurance in Indonesia isn’t complicated — especially with BPI by your side. We’ll help you understand the options, choose the right coverage, and manage everything if something goes wrong.