You usually heard of cheapest car insurance general but what is the Difference of All Risk and Total Loss Only Car Insurance ?
Then, when it is decided, what kind of car insurance needs to be taken? First of all, we need to know in advance two types of car insurance as well as advantages and disadvantages. Car insurance is divided into two:
- Total Loss Only Car Insurance (TLO )
Literally Total Loss Only means “only if loses total”. Means that insurance claims can only be filed in case of ‘total loss’. In car insurance, the total loss is a damage that occurs above 80% or loss of theft or for plunder. If the damage suffered is less than that, you will not be compensated for damages. The 80% benchmark is taken because the car is definitely not usable. The surplus, Total Loss Only insurance premium is lower than all risk car insurance.
- All Risk or Comprehensive Car Insurance
All Risk can be defined as ‘any risk’. This insurance is also called Comprehensive or overall. This means insurance will pay claims for any kind of damage, ranging from minor damage, serious damage, to loss. Unlike the Total Loss Only Car Insurance, a slight blister on the car, insurance will pay insurance claims. It’s just that All Risk car insurance is more expensive than Total Loss Only Car Insurance.
In order not to choose wrong, you can compare All Risk car insurance and the best Total Loss Only Car Insurance car insurance for your vehicle. Compare best car insurance products from leading insurance companies throughout Indonesia
Every car insurance may have a varied policy. In general, how to calculate Total Loss Only Car Insurance and All Risk car insurance premiums is based on the insurance rate multiplied by the price of the car. The rate as presented in the table above is not the same for each region and category.