TLO Insurance: Is it Ideal and Good for a New Car?

total loss only insurance

TLO insurance or total loss only is a type of vehicle insurance that provides compensation protection against the risk of total loss or repair costs exceeding 75 percent of the current vehicle price. 

Now, before discussing further this type of insurance, it needs to be underlined that every car requires insurance protection, be it total loss only or All Risk insurance.

It's just that, when you have a new car, of course, we want to provide the best protection for our beloved vehicle, right? Therefore, TLO insurance is not recommended to be the main protection for new car types. Here's why:

1. TLO Car Insurance only covers total losses

As previously explained, the type of total loss only guarantees compensation if the car is lost or damaged. For example, your car enters water due to a flood or beret because it is touched by a motorbike, then the repair costs are not covered by total loss only insurance because the repair costs are light or not more than 75 percent of the current price of your car. 

It's different if your new car is mired or stolen, then the cost of repairs will be covered by total loss only insurance.

2. Prepare a budget of millions of rupiah for repair costs

car insurance, you have to prepare a budget of up to millions of rupiah in case of a loss. It is different if it is protected by All Risk, where all repair costs to compensation if you hit someone's car (third party compensation), will be borne by the insurance company. But you still have to pay the own risk fee for each repair.

3. The premium is not much different from all risks

Most people prefer TLO car insurance because the premium costs are cheaper. Currently, there are many All Risk car insurance options with friendly premiums.

Indeed, it will still be more expensive than total loss only insurance. But if you consider the cost of repairs when there is a risk of loss on a new car, of course, the premium paid is worth it!

It's OK to Choose Origin TLO Insurance

After seeing the three disadvantages above, maybe some of you will immediately conclude that insurance is not profitable.

This assumption is not entirely correct! Total loss only insurance is certainly useful for those who live in areas prone to crime or prone to natural disasters, such as earthquakes or landslides. 

Besides, TLO insurance is also very suitable for the protection of types of motorbikes. The reason is that the type of motorized vehicle is more prone to the risk of theft. If there is damage to the body, of course, the damage will not be as expensive as car damage.

What is TLO insurance?

Insurance total loss only (TLO) is a type of insurance to guarantee compensation for the risk of a total loss on the insured car or motorcycle.

Is TLO insurance suitable for used cars?

The answer is yes because generally insurance companies provide a longer car age limit for this type of TLO. Some even bear the age of the car up to 10 years!

How long does the TLO insurance claim process take?

Generally, if the claim submission has been approved by the insurance company, the claim process will take a maximum of 14 working days. The cost of car insurance claims will be charged to customers

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