Car Insurance in Indonesia – Everything Expats Need to Know

Owning a car in Indonesia comes with its share of challenges — from traffic congestion to unpredictable road conditions. That’s why having the right car insurance is essential for both financial protection and peace of mind. Whether you're driving in Bali, Jakarta, Lombok, or beyond, here’s everything you need to know about car insurance in Indonesia.

Is Car Insurance Mandatory in Indonesia?

Unlike some countries where car insurance is legally required, car insurance in Indonesia is not mandatory for private vehicles. However, considering the risks on the road — accidents, theft, and damages — getting insured is a smart financial decision.

Some types of coverage, such as Third-Party Liability, may be required if you finance your car through a bank or if your vehicle is used for business purposes.

Types of Car Insurance in Indonesia

There are two main types of car insurance you can choose from in Indonesia:

• Total Loss Only (TLO) Insurance

TLO is the most affordable option and covers:

Theft – If your car is stolen, you’re covered

Severe damage – If the repair costs exceed 75% of the car’s value, you’ll get compensation.

TLO is great for budget-conscious drivers or older vehicles, but it won’t cover minor accidents or scratches.

• Comprehensive (All Risk) Insurance

Comprehensive insurance offers full protection and covers:

Accidents & collisions – Covers repairs for both small and major damages.

Theft & vandalism – Your car is protected from theft or intentional damage.

Additional Coverage Options for Maximum Protection

In addition to standard car insurance, you can enhance your policy with valuable add-ons for extra security. Personal Accident Coverage protects the driver and passengers in case of injury or death due to an accident. Acts of God coverage ensures protection against natural disasters like floods, earthquakes, and storms—critical in Indonesia’s unpredictable climate. For added peace of mind, Terrorism & Sabotage coverage protects your vehicle against damage caused by riots, civil disturbances, or intentional attacks. These add-ons ensure that you, your passengers, and your car are fully covered, no matter what happens.

Why Third-Party Liability is Essential ?

Many drivers focus on insuring their own car but forget about liability coverage. If you cause an accident, you could be responsible for paying damages to another driver, their vehicle, or even medical expenses.

Adding Third-Party Liability (TPL) to your car insurance ensures that if the worst happens, you won’t have to pay massive out-of-pocket costs.

Why Expats in Indonesia Should Consider Car Insurance ?

For expats living in Indonesia, having car insurance is even more important due to:

• Different driving laws and unpredictable traffic conditions

• High accident rates in major cities like Jakarta and Bali

• Theft risks, especially for high-end cars

• Potential liability in case of an accident with another driver or pedestrian

With BPI, we guide you through the process and ensure you get the best coverage for your needs — without overpaying or missing essential protections.

Why Choose BPI for Car Insurance?

At BPI, we help expats and locals find the best car insurance solutions in Indonesia.

• We compare policies from multiple providers to get you the best deal.

• We assist with claims from start to finish — no dealing with insurers alone.

• We offer clear explanations in English.

• We make sure you’re fully covered, including Third-Party Liability.

Want to insure your car?

Contact us today, and we’ll find the best plan for you!