EVALUATING THE DEMAND FOR MANDATORY TOLL INSURANCE: AN ANALYSIS OF INDONESIAN TOLL ROAD USERS’ PERCEPTIONS AND ATTITUDES

• Main Author: Aisya Muhali, Qanita
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87468
• Institution: Institut Teknologi Bandung

As Indonesia's toll road network rapidly expands, so do the associated risks of accidents and financial liabilities. Despite improvements in infrastructure, accidents on toll roads continue to result in significant financial losses and push many individuals into financial instability. Current insurance offerings provide limited coverage, leaving gaps in protection, especially for single-vehicle accidents and infrastructure damages. With only a small percentage of vehicles insured, underinsurance remains a critical issue. To address these challenges, PT Jasaraharja Putera proposed mandatory toll insurance to offer broader coverage for toll road users. This study examines the feasibility of such a product by exploring factors that influence the perceived need for toll insurance, including perceptions of safety risks, attitudes toward insurance, trust in institutions, price sensitivity, and travel behavior. Findings from regression analysis revealed that safety risk perception, a favorable attitude toward insurance, and trust in institutions significantly drive the perceived need for toll insurance, aligning with the Protection Motivation Theory by Kahneman and Tversky’s (1979) focus on risk perception and trust as motivators for protective behaviors. Contrary to expectations, price sensitivity also showed a positive relationship with the perceived need, suggesting that price-conscious individuals may view toll insurance as a cost-effective solution, aligning with Prospect Theory by Rogers’ (1975) emphasis on the role of loss aversion in decision-making. Moderation analysis highlighted the role of travel behavior, with frequent toll users perceiving a lower need for toll insurance as their familiarity with toll roads reduced the influence of safety risks and institutional trust. This finding supports prior studies indicating frequent users may undervalue additional services due to habituation. Although the perceived needs for toll insurance are generally demonstrated high, regional differences further emphasize variations in perceptions and attitudes, likely reflecting differing travel patterns, trust levels, and cultural attitudes toward financial protection. These results underscore the need for tailored strategies to promote toll insurance adoption. Marketing efforts should emphasize cost-effectiveness and the tangible safety benefits of toll insurance to appeal to price-sensitive users. Building trust through transparent claims processes and collaboration with toll operators can enhance institutional credibility, a key driver of perceived need. By addressing these factors and leveraging theoretical insights, toll insurance can be positioned as a vital financial safety net for Indonesia’s expanding toll road network, contributing to improved financial security and public safety.