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Surely, you often ask, “What does car insurance cover?” This article discusses what is covered by All Risk and TLO insurance, rider benefits such as flood protection and emergency evacuation, as well as the advantages of digital claims and extensive coverage from Oona Car Insurance.
Many car owners in Indonesia still believe that car insurance is only useful in the event of loss or serious damage. However, the right policy can protect against a wide range of damage, from minor scratches in a parking lot to major flooding that submerges a vehicle.
Based on a survey from OJK, more than 60% of vehicle insurance customers have not read the details of their policy coverage before purchasing. This lack of awareness often leads to claim denials or choosing a policy that does not meet their needs.
In this article, you will learn:
What is covered by an All Risk policy
The coverage of a TLO policy
Rider functions and benefits
The advantages of digital protection from Oona Insurance
Want your vehicle to be fully protected? Make sure you understand the coverage first. Let’s start with the type of coverage that offers the most comprehensive protection: All Risk Insurance.
An All Risk Car Insurance policy, often called a comprehensive policy, provides the broadest coverage compared to other types of policies. This policy is designed to cover various types of damage, both minor and major, including vehicle loss.
Please note: maximum benefits only apply according to the provisions in the policy and if the risk that occurs is not part of the exclusions.
The following is the main coverage of an All Risk policy:
Type of Risk |
Is It Covered? |
Notes |
|---|---|---|
Minor |
Yes |
For example, scratches, small dents, broken lights, or broken mirrors due to light impacts. |
Major |
Yes |
Such as serious collisions, rollovers, or total damage. |
Fire |
Yes |
Including fire caused by electrical short circuits, component explosions, or external fire sources. |
Vehicle |
Yes |
If the car is lost due to robbery or theft, it will be compensated according to market value. |
Floods and Natural Disasters |
Optional |
Only if a natural disaster or flood rider is added. |
Riots, |
Optional |
An SRCC rider must be added for this coverage. |
Third Party Liability (TPL) |
Optional |
Can be covered if the TPL rider is added when purchasing the policy. |
Disclaimer: Without additional riders, some risks, such as floods or riots, are not automatically covered. Therefore, it is important to tailor your policy to the environmental conditions and risks associated with your vehicle’s use.
For a deeper understanding, also read: The Difference Between Comprehensive (All Risk) and TLO Car Insurance in Indonesia
User Profile |
Why It Is Suitable |
|---|---|
New Car Owners |
The vehicle value is still high, so it deserves full protection. |
Drivers in Big Cities |
The risk of collisions or minor incidents is higher. |
Daily Car Users |
High frequency of use increases the risk of minor damage. |
If you want peace of mind while driving, especially in cities with heavy traffic risks, then All Risk is the ideal choice, especially when equipped with riders that suit your needs.
While All Risk offers comprehensive protection, it does not mean it is suitable for everyone. If you are looking for basic protection with lower premiums, let’s discuss the next option: TLO Car Insurance.
Total Loss Only (TLO) car insurance provides basic protection against extreme risks such as total loss or major damage. However, minor risks are not included in the coverage unless certain riders are added.
Type of Risk |
Is It Covered? |
Explanation |
|---|---|---|
Total Loss |
Yes |
If the car is lost due to theft or robbery, it will be compensated according to the current market value. |
Damage of more than 75% of Value |
Yes |
Repair costs exceed 75% of the vehicle’s market value, such as damage from fire or a serious accident. |
Light Scratches on The Body |
No |
Minor damage such as paint scratches due to friction is not covered. |
Small Dents |
No |
Minor damage such as hitting a pole or another vehicle will not be compensated. |
Broken Mirrors |
No |
This includes small components damaged due to minor incidents. |
Flood Damage |
Depends on the rider |
Only covered if the policy includes a flood or natural disaster rider. |
Disclaimer: A TLO policy is suitable if you want lower premiums while still protecting against major risks. However, you should be aware of its limitations, especially if you live in an area with potential flooding or heavy traffic.
If the car is more than 5 years old
If you want to reduce premium costs
If the car is only used occasionally
Both All Risk and TLO policies can be enhanced with additional features called riders. These riders allow you to customize your coverage based on your daily risks. Here is the full explanation.
Riders, or benefit extensions, are additional features that you can activate to expand the coverage of your All Risk or TLO policy, depending on your specific risk needs.
Rider |
Risks Covered |
Explanation |
|---|---|---|
Floods and Natural Disasters |
Damage due to floods, landslides, or earthquakes |
Protects the car from damage caused by water entering the engine or other geological disasters. |
SRCC |
Strikes, riots, civil commotion, and terrorism |
Coverage for damage caused by large-scale social disturbances. |
Roadside Assistance |
Emergency evacuation, towing service, and on-site tire changes |
Assistance when a car breaks down or when an incident occurs in a difficult location or outside working hours. |
Third Party Liability (TPL) |
Compensation and legal costs if you cause losses |
Provides financial protection if you are sued for causing losses to another party. |
Disclaimers:
Riders are not automatically active in standard policies. You need to select and add them at the time of purchase.
TLO policies can include certain riders, but the coverage remains limited compared to All Risk.
Flood-prone or conflict-prone areas are strongly advised to choose Flood and SRCC riders.
Riders such as Roadside Assistance are very useful if you often travel long distances or live in an area with limited access to repair shops.
TPL riders are essential for legal protection, for example, if you hit another driver and have to cover their medical costs.
Because Indonesian roads are prone to disasters and incidents. Seasonal flooding in Jakarta, for example, can completely damage a car. Without a rider, you will be responsible for all the costs yourself.
Do you already know the right type of coverage and riders? Now it is time to find out which insurance provider can accommodate all of that without the hassle. Here are the advantages of Car Insurance from Oona.
Oona offers more than just a standard policy. Here is why Oona Car Insurance is worth your consideration:
Practical digital claims: Apply via the official claim page without having to visit the office.
Policy flexibility: Choose All Risk or TLO car insurance coverage, adjusted to the age and value of the vehicle.
Electric vehicle (EV) support: Special protection for EVs.
National workshop network: From big cities to rural areas, you are always served.
Complete riders: Flood, TPL, SRCC, emergency assistance, and others.
Check the complete list of Oona partner workshops on the official website, myoona.id.
With a digital-first approach, Oona makes it easy for you to check premiums, choose plans, and submit claims without hassle, all from one platform.
What does car insurance cover? In general, coverage may include minor damage, total loss, theft, and additional risks if you choose extended coverage. Therefore, do not focus solely on comparing premiums. Make sure the type of policy matches your vehicle’s condition, how frequently it is used, and the risks in the area where you live.
All Risk Insurance is suitable for those who want more comprehensive protection. This policy generally covers minor damage such as scratches and dents, major damage resulting from accidents, and loss, subject to the terms and conditions of the policy.
TLO (Total Loss Only) can be a more economical option for older vehicles or cars that are not used every day. This coverage generally applies when the vehicle suffers total damage or is lost due to theft, subject to the policy’s limits and conditions.
Riders or coverage extensions are worth considering if you live in a flood-prone area, frequently travel long distances, or need additional protection beyond the standard policy, such as coverage for natural disasters, riots, or third-party liability.
Oona Car Insurance offers All Risk and TLO policy options, coverage extensions, digital services, and a convenient claims process. With clear coverage options, you can choose protection that is better suited to your daily driving needs.
Learn more about the benefits and protection options available for your vehicle through Oona Car Insurance.
