For those who do not have car insurance, first identify two types of car insurance that can be selected according to needs, namely All Risk and Total Loss Only. Want to know the difference? Here are the facts that must be known!
Insurance premiums are costs that must be paid for the transfer of risk that might overwrite the vehicle to the party who issued insurance. Premium value offered by each insurance company may vary according to their respective provisions.
Despite wanting the best protection for the car owned, but the amount of premium should still be in accordance with the ability. Note the premium value is quite cheap and has a cover power insurance coverage is quite complete.
All Risk Insurance has a premium value that guarantees all losses caused by accidents, theft of vehicles, to damage to other cars such as being hit by other vehicles or other events that could cause damage to the car.
TLO Insurance, of course, has a premium value that is lighter when compared to the type of All Risk. Own insurance value is calculated based on the price of the car. TLO Insurance only covers large losses such as losses due to theft and severe damage due to accidents. The premium value itself is determined in accordance with the territory of the State.
Protection Provided by Insurance Parties
If you choose All Risk insurance, the losses incurred are all risks that might befall the car owned. Cover insurance will not calculate how much damage or loss of the car experienced.
Usually the insurance company will provide coverage of protection for losses that may be only part or all of the cars that may be experienced. For example, such as being hit by heavy objects, fire, theft, misconduct of irresponsible persons, collisions, and various other traffic accidents.
There is also an expansion of the All Risk insurance coverage that includes damage due to flooding, damage due to being caught in a riot, or loss of a vehicle. All Risk Insurance also provides third party liability if you as a car driver crash into another vehicle.
Meanwhile, TLO insurance will only guarantee the loss or damage to the vehicle with a minimum damage of 75% so that the vehicle can no longer be used. The company only provides reimbursement for repair costs if it encounters severe damage, but does not cover at least 75% of the damage.
This coverage is not comprehensive, which makes the value of TLO insurance premium not equal to All Risk. But, if the budget is not too large, TLO insurance can be an option with notes