Broadly speaking, total loss only or TLO insurance is a special type of transportation insurance that promises protection against injury for various risks of overall loss. It can also take the form of an exchange for a correction fee that exceeds 75% of the total price of the means of transportation.
In fact, every car wants protection from any kind of insurance it seems. Whether it’s TLO insurance or all risks.
However, many people are willing to provide the best protection for a recently purchased car by buying TLO insurance products. Meanwhile, this insurance is not recommended for owners of the latest types of transportation equipment.
TLO Insurance Alibi Not Recommended for New Cars
1. Minimum guaranteed loss of 75%
It is also known, that TLO insurance will only provide exchange collateral if you face serious problems. Such as total destruction of at least 75% until the loss of transportation equipment due to robbery or other criminal behavior.
However, if your means of transportation is not planned, it will be possessed by water due to flooding or facing obstacles. Well, the payment for the correction of the destruction will not be guaranteed by the TLO insurance industry. Because, the fee issued was categorized as light and less than 75% of the price of the car at that time.
It’s different if your car disappears, gets stolen or sinks into the valley. All repair and repair fees for injuries will be fully covered by this type of TLO insurance.
3. The bonus is not much different from the All Risk type of insurance
Many people choose TLO insurance because they see bonus payments that are much more affordable than the All Risk type. It is true, however, the economical price must be proportional to the amount of protection given.
Meanwhile, if you look more closely, there are currently many all risks insurance options with lighter bonus payments. Indeed, the bonus amount of All Risk insurance will always be more expensive than TLO insurance.
However, if you look again at the correction fee when there is a loss, of course the amount of the All Risk insurance bonus is more worth it for the latest car type. Because if there is a loss, the insurance industry will guarantee it, as a result the costs incurred will be less.
TLO Insurance Not Suitable for Latest Cars?
Basically, TLO insurance is one of the transportation insurance products that provides loss exchange collateral for the risk of total loss of the insured transportation equipment. If you look at some of the alibis above, is it true that this type of insurance is not suitable for new cars?
In fact, the assumption that TLO insurance is less profitable for the latest means of transportation is not entirely true. The reason is, there are some situations that are even more profitable when you choose TLO insurance for the latest means of transportation.
How can that be, what is the reason? The reason is that the TLO type of insurance can provide a sense of comfort to the owner of the means of transportation whose residence is located in a position that is prone to errors or natural disasters. Because full injury compensation will be given when there is a minimum damage of 75%.
Not only for chakra 4 transportation, TLO insurance is also very suitable to provide protection for chakra 2 types of transportation. One of the reasons is that this type of transportation is more prone to the risk of robbery than cars.
What’s more, the repair fee when there is a crash is also much lighter than a car. So, the protection provided by TLO insurance is quite suitable for the position of the place of residence and the right type of transportation.
Pay close attention to the selection of insurance types for new cars
Providing the right type of protection on your favorite car will increase the comfort. Especially for the latest cars which in fact will be more loved when using it.
This does not mean that TLO insurance is not good for all types of modern means of transportation. Because the latest motorcycles can get maximum protection with that insurance. It’s just that it’s not very profitable to provide protection for new cars. For that, first understand what protection you want before buying an insurance product, right!