Life Style

Which One to Choose: All Risks or TLO Insurance?

9 July, 2023

The increasing number of vehicles on the road has created higher risks of traffic accident. When it happens, a car owner or car driver must pay for some inflicted expenses.

The Benefit of Car Insurance

Here are some benefits of car insurance:

1. Gives protection

   Insurance can give protection for car owner against loss due to unpredictable events.

2. Secure your financial planning

   When a car is damaged, it requires costs for services. Since insurance company covers the costs, the insuree won’t have too much burden on the inflicted costs.

3. More protection

   Some kinds of insurance offer extra protection besides repair (for all risks insurance) or replacement (for total loss only or TLO insurance) of car spare parts, which include legal assistance with third party, life insurance and many more. Such insurance gives more benefits to policy holders. Other assistance such as the provision of a tow truck and a replacement car service when your vehicle is cared for in the workshop will greatly assist your mobility, so your activities stay smoothly at all times. Always use a hotline service that always helps you 24 hours.

Also read: Things You Should Consider Before Buying A New Car

Kinds of Car Insurance

There are two kinds of car insurance, namely:

1. There are two kinds of car insurance, namely:

   Total loss only (TLO) literally means only (when) total loss occurs. It means that insurance claim can only be made only when there is a total loss. In car insurance, total loss refers to condition when above 75% of car is damaged or car is lost due to theft or seizure. When the damage is less than 75%, you won’t get your insurance claim. The 75% standard is specified to assure that the car is no longer usable. The benefit is that premium in TLO insurance is lower than that of all risks car insurance.

2. All Risks/Comprehensive Car Insurance

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   All risks means coverage of any risk. This kind of insurance is also named comprehensive or all-inclusive. It means that insurance company will pay claim for any kind of damage, from minor to severe damage and lost. Unlike TLO insurance, all risks insurance will pay insurance claim even for a little scratch on car body. Therefore, all risks insurance is more expensive than TLO insurance. However, there are some risks that insurance companies do not cover. You can decide to expand your car insurance. Additional insurance fee may be used to guarantee expansion of the following risks:

   1. Hurricanes, floods, storms, hail, and landslides

   2. Earthquakes, tsunamis, and volcanic eruptions

   3. Riot

   4. Terrorism and sabotage

   5. Legal liability to third parties

   6. Personal accident (including medical expenses)

3. Insurance held by APM (Agen Pemegang Merek)

   If you buy a Wuling car, there are some insurance features you get from APM, including:

   • Service maintenance voucher
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        Year 1: 5,000 km, 10,000 km & 20,000 km

     • Year 2: 30,000 km & 40,000 km

     • Year 3: 50.000km

   • 24-hour call center

   • New For Old

     If the vehicle suffers a total loss due to the risk guaranteed by the policy within the fies 6 (six) months of the insured period, the Insurer will provide compensation in the form of the same new vehicle or similar typy of mark, type and year of vehicle insured. If/when the type is no longer available on the market, the insurerwill provide reimbursement of the sum insured value listed on the policy overview.

   • Towing service

   • Personal Effects

     Indemnification/damage to personal items such as goggles, cell phones, cameras and other personal electric devices damaged as a result of an insured vehicle accident whose causes are guaranteed by the policy. Maximum replacement value is Rp. 2.000.000,- during the coverage period. Goods that are not guaranteed are money, animals, plants, art goods, jewelry stones and gold.

Which Insurance You Choose?

Well then, which insurance should you choose? Choose all risks insurance if:

• The value of your car is quite high that it needs huge cost even for a little damage.

• You have car rental or driving school business.

• High frequency of car use.

• You often go through packed roads with risks of car accident.

If you’re still confused, you can also combine TLO scheme with all risks insurance. For instance, if your car is a brand new one that just got out of a showroom, or perhaps you are benefited from used car leasing, you may buy all risks insurance policy for the first and second years. After that, you can insure your car by buying TLO insurance policy for the third year and so on.

If you haven’t considered about insuring your car, mainly due to the presumed ‘unprofitable premium payments’ reasoning, you may want to reconsider about it, because protecting your car with an insurance can prevent bigger loss. Everyone would want a driving experience and a better life experience, right?