Difference TLO Car Insurance & All Risk
Difference TLO Car Insurance & All Risk - Insurance for cars actually has two types, namely TLO car insurance and All Risk car insurance. The difference between the two types of insurance lies in the coverage of the insurance coverage. When All Risk insurance provides coverage for cars with all risks (with certain conditions), TLO insurance only provides coverage for risks whose damage rate is more than 75% or only when the car is lost.
From the explanation above, it can be seen if All Risk insurance has a wider guarantee coverage than TLO, then it is not surprising that the price becomes somewhat more than TLO. TLO itself comes from the extension of Total Loss Only, the name is indeed in accordance with the guarantee of the car it provides. Nevertheless, there is no such thing as "superior insurance", because both insurances have their own advantages, as I will discuss below:
Advantages of all risk car insurance and TLO (Total Lost Only):
– Advantages of All Risk car insurance
As explained earlier, the advantage is to have a wider coverage guarantee than TLO car insurance. This wider coverage of warranties is definitely the advantage that interests potential buyers the most. Whatever the risk, even if it is only a trivial risk such as a broken rearview mirror or a beret car body.
– Advantages of TLO car insurance
The advantage of TLO certainly lies in its cheaper price. Low prices that can already provide protection for the car from the worst risks that may occur. Although you cannot provide coverage for trivial risks, you can survive the risk of causing severe losses with this insurance and cover small risks yourself.
In addition to these two types of insurance, there is actually also such a thing as Comprehensive car insurance. This insurance is a combination of All Risk insurance along with expansion guarantees. So, in insurance, there is also such a thing as an expansion guarantee which is an extension of the guarantee of what guarantees have been given.
When you use All Risk insurance plus an expansion guarantee, the name becomes Comprehensive insurance. However, not only All Risk can use the expansion guarantee, TLO insurance can also use the expansion guarantee. The guarantees of expansion in question are such as guarantees for the risk of floods (natural disasters) and the risk of riots, terrorism, sabotage, and the like.
All Risk is more suitable for cars that are very vulnerable to risk (no matter how small it is) that can cause losses, while TLO is more suitable for use by cars that are old because of the price. But, whatever type of insurance you choose, it is still the advantage that you will get. Compared to if you do not use insurance at all, without protection that can wait for your losses.
