Car Insurance All Risk or TLO

Vehicle insurance is very necessary for you. In addition to providing protection from accidents or other unforeseen events, car insurance also help you with the right financial plan. Therefore, financial dependents on risks that may occur in the vehicle will be transferred to the insurance company or a guarantor.

In fact, in development at this time many additional protection provided by the vehicle insurance. For example, due to riots, sabotage, or natural disasters, providing new car replacement, providing protection against the cost of the driver and passenger cars are insured, and others.

Then, if all vehicle insurance to bear all these things?

Under the conditions of the coverage, insurance is actually divided into two parts. First, it is a Total Loss Only (TLO) and the second a comprehensive or better known as all-risk.

What's different about these two insurance?

For the first category, or Total Loss Only (TLO), this type of vehicle insurance only provide coverage if the vehicle is insured person is missing or damaged at least 75% and can not be used anymore. So, if the vehicle is in an accident and damage to the vehicle up to 75%, the insurer (insurance company) will pay insurance claims.

In addition, the loss due to theft and not embezzlement or also called a total loss stolen also be dependent on the type of insurance TLO. In fact, there are some insurance companies that provide insurance services in the form of packets, for example, combines kind TLO with TPL (Third Party Liability) or coverage for third parties. However, this type of insurance will not bear the risk if damage is below the rate of 75%.

For the second category, namely all-risk (combined insurance) is a type of insurance that will guarantee huge losses due to accidents, minor accidents, loss of ancillary equipment to destruction, and the vehicle is lost. All risks that occur on your vehicle will be borne by the insurance. In fact, this insurance also protects your vehicle when the vehicle crashed into another person, or in terms of insurance is called Third Party Liability (TPL) which can also be included in the category of the scope of this insurance coverage.

So in conclusion on car insurance?

For a premium, all-risk insurance is usually more expensive, but worth the maximum protection to consumers than TLO insurance. The reason, protection is more promising, because the insurance company will reimburse the cost of damage to cars that were damaged in whole or in part. While TLO, despite low premiums but if the car is insured damaged below 75% it is not dependent insurance company, however, be the responsibility of the policyholder