Benefits of Total Loss Only (TLO) Car Insurance

 New and used cars certainly have striking differences, whether in terms of price, performance, or driving comfort. Despite these differences, public interest in buying used cars remains high.

To ensure safer driving, people often insure their cars with a trusted insurance company. One popular insurance product is Total Loss Only (TLO).

Benefits of Total Loss Only (TLO) Car Insurance

What is TLO, and what are the benefits of this insurance? Here's an explanation.

What is Total Loss Only Insurance?

As the name suggests, Total Loss Only (TLO) insurance is a type of car insurance that covers the cost of repairing a customer's vehicle if the damage is severe, amounting to 75% of the vehicle's value. This type of insurance also provides compensation if the insured car is totally lost.

At this percentage, the car can be considered unusable even after repairs. Furthermore, repair costs are also expensive due to the large number of parts that must be replaced. Therefore, Total Loss Only (TLO) car insurance is crucial, as it can cover replacement costs.

Benefits of TLO Insurance

Like most insurance products, TLO car insurance offers several benefits, including:

Protection in Case of Car Theft

No one wants their beloved car stolen, even if it's being replaced with a new one. But misfortune can happen at any time, regardless of who it is. With TLO insurance, you don't need to worry if your car is stolen by an irresponsible party.

To file a claim for a lost vehicle, you need to attach supporting evidence, such as CCTV footage. You'll also need to prepare documents such as an insurance policy and a claim form.

Reduced Repair Expenses

Car repair costs are many times more expensive than motorcycle repairs. Repairs to damaged parts, especially major damage, can quickly drain your wallet. Instead of paying expensive repairs, TLO insurance will cover these costs.

Cheaper Premiums

Car insurance premiums for TLO tend to be cheaper than all-risk insurance, typically around 0.8% to 1.02%. Much cheaper than all-risk insurance, which costs 2.5-3.5% of the car's market price, TLO insurance allows you to save around 1.23% per year. This percentage is also influenced by vehicle category and region, as stipulated by the Financial Services Authority (OJK).

For example, assume a car costs Rp150 million with a 1% insurance premium. This means you'll need to pay Rp150,000 per year. Not a huge amount to protect your car, right? The amount covered by insurance is usually greater than the annual premium.

Please note that the percentages above are only examples and may change according to insurance company regulations or OJK regulations. Consult with your agent or dealer to determine the appropriate premium.

Expandable Benefits

Want to add protection to your beloved car? Don't worry, TLO insurance allows you to expand your coverage. There are seven types of car insurance coverage extensions available, as follows:

Floods, including hurricanes.

Earthquakes and tsunamis.

Riocracy and civil commotion (SRCC).

Terrorism and sabotage.

Third-party legal liability.

Personal accidents for passengers.

Legal liability for passengers.

You can even change your car insurance type to all-risk if needed. Simply fill out the form and complete the required documents, and you'll receive broader coverage.

Before expanding your coverage, carefully review the insurance company's terms and conditions. If you have any questions, please ask the insurance agent or officer directly.

Providing a Sense of Safety and Comfort While Driving

Having car insurance provides an extra sense of safety and comfort while driving. You won't have to worry if your vehicle is damaged by a collision with another driver, as the insurance company will cover the repair costs.

While not everything is covered, the insurance company's compensation is at least a small amount, especially when you add in the compensation for the driver who collided with the vehicle.

TLO Insurance Offers Ample Benefits

With lower premiums than all-risk insurance, TLO insurance is a suitable option if you want protection on a more affordable budget. However, it's important to remember that the protection offered by TLO is not as flexible as all-risk car insurance.

Drive safely. Even with all the protection you have, safety while driving should remain your top priority.