The Difference Between TLO & Comprehensive Car Insurance You Must Know

Insurance is very important as a form of protection for your valuable assets. One of them is a car. Talking about car insurance, we know that there are two types of insurance, namely TLO insurance and comprehensive insurance. The two types of car insurance often confuse potential consumers. Even though these two insurances have different types of protection.

Difference between TLO and Comprehensive Vehicle Insurance

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Also known as comprehensive insurance. However, according to insurance entrepreneurs, the word "all risk" is not enough to describe this type of protection. Therefore, the correct use of the term is total insurance. So what is this type of comprehensive insurance?

As the name suggests, Comprehensive provides broad and comprehensive protection. That is, total coverage includes coverage from partial loss to damage and total loss. Thus, this type of insurance can cover all types of claims, ranging from minor damage such as scratches, moderate damage, to serious damage such as serious accidents or theft.

TL insurance

TLO itself means a total loss. In other words, TLO insurance only covers total losses. Examples are theft or serious damage resulting from a serious accident. The insurer will provide financial protection of 75% or more of the total selling price of your vehicle.

However, you need to understand that TLO insurance does not cover minor or moderate damage. So really understand the type of insurance you need. Also adjust to your financial capabilities to provide more optimal protection.

Expanding auto insurance coverage

Another thing to note is that not all types of damage are covered by insurance. There are several types of losses that will be covered if you purchase extended coverage in your insurance policy. The types of extended warranty options that you can choose include protection for the driver and passengers, riots or chaos, natural disasters, and terrorism.

In addition, when you want to take out insurance, it is very important to fully understand each item or type of coverage that you will receive. Don't allow yourself to be misunderstood and cause future losses. Don't be tempted by attractive promotions that don't offer the protection you need.