One way to reduce the risk of accidents is to be careful when driving and follow the procedures for driving well, such as obeying traffic signs and not driving if the body is not fit.
But if an unwanted incident still occurs even though you are careful, you can protect the risk of unwanted vehicle damage by buying a car insurance policy.
In general, car insurance is divided into two types, namely All Risk and Total Loss Only (TLO) insurance.
So what is the difference between the two?
See some of the following explanations.
All risk insurance
All risk vehicle insurance is also called comprehensive insurance.
Premiums for comprehensive insurance are usually more expensive than TLO insurance.
This type of insurance has complete protection ranging from minor damage, loss, to guarantee expansion such as if there is flooding or damage due to being trapped in a case of riots.
There are some exceptions to the guarantee.
For example, if you have been accidentally hit by a flood.
If you do that, the insurance company will not pay the claim.
For that, you should ask in detail what the terms and conditions of all risk insurance you have.
Total Loss Only (TLO) Insurance
The premium TLO insurance is lighter than all risk insurance.
Premium value is usually calculated from the percentage of the price of the car.
For example, 1% of the price of a car. For more details about the amount of premiums, you can contact a motor vehicle insurance company.
Each has different terms and conditions. TLO insurance is not as complete as all risk insurance.
TLO insurance usually only covers the replacement if the lost car is stolen
That’s some explanation about the difference between TLO and All Risk in car insurance.