Car Insurance Reasons Total Loss Only (TLO) More Beneficial

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TLO Car Insurance – There are many advantages we can get from insurance for Cars. But the point is more to the safety factor where all the possible risks to the car are fully transferred to the insurance company. Some things to consider when we choose the car insurance is a factor of financial strength, services, and costs (expenses).

Associated with the insurance of this car, there are two types of protection provided by the insurance company.

The first comprehensive protection (Comprehensive) that is the cost of compensation or repair costs for the loss or damage of some or all of the car due to :

  • crime,
  • theft,
  • fire,
  • and any kind of traffic accidents.

The second protection Total Loss Only (TLO) is the guarantee of compensation for the loss or damage of TOTAL cars due to

  • crime,
  • theft,
  • fire,
  • and any kind of traffic accidents.

Total Loss Only (TLO) car insurance is more interesting

car insuranceMany reasons why people prefer TLO car insurance even though the risk is guaranteed to be narrower. Although using the word “Loss” which means “lost”. The risk to be borne by the TLO is not only limited to loss of the car alone but covers all the damage caused by various things. Even the damage covered by the TLO insurance is at least 75 percent.

Damage coverage of 75 percent is a benchmark considering the car is certainly in a badly damaged condition a.k.a can not be used again. That is why the TLO is said to give total protection.



While on the one hand the owner can not make insurance claims for minor damages such as

  • body scratch,
  • rear-view mirrors,
  • or other minor types of damage.

Simply put, TLO car insurance guarantees losses when a car crashes with a level of damage above 75 percent as well if the car is burned or lost stolen or seized.

Many people who argue that the insurance of TLO car insurance coverage somewhat ‘bear’. This means it does not provide overall protection. Especially minor damage but more focus on major damage.

Next can be guessed, people prefer insurance All Risk where there is full guarantee against all types of damage either minor or major. But there are consequences that must be borne when choosing All Risk insurance is the insurance premium that must be paid much larger than the insurance TLO.

TLO Insurance Makes Us More Beware

car insuranceWhen we choose the Total Loss Only (TLO) insurance car is not really a problem whether. Or not we can afford insurance premiums. Measure and analyze the risks that may occur in the car. Sometimes this is often overlooked, any risks that may occur in our cars.

Because the risk is guaranteed TLO insurance more narrow then it makes us more careful in driving. Different with All Risk insurance that tends to be familiar with the words “Why why stay claims”. This mindset sometimes makes us careless and careless when driving.

Conversely, if there is a minor risk that is not borne by the insurance company to force us to think repeatedly to do carelessness. Because no matter how small the risk of carelessness will be expensive if we have to spend personal, not from insurance.

In principle, the function of car insurance is to take over the big losses for loss or damage to cars that can not be borne alone. So without ignoring the risk of minor damage, the fatal damage guaranteed by the Total Loss Only (TLO) car insurance is more attractive especially with the low cost premium.

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