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Choosing the right type of car insurance, between All Risk and TLO, is very important for protecting your vehicle. This article explains the situations and conditions when you should choose All Risk for comprehensive protection.
Before making a choice, it’s important to understand the key differences between All Risk and TLO.
All risk vs. TLO Comparison Table
Aspect |
All risk |
TLO (Total Loss Only) |
|---|---|---|
Coverage of protection |
Small to large damage, loss |
Only total loss or damage > 75% |
Premium |
Higher |
Lower |
Ideal vehicle age |
Only up to 5 years |
5 years and over |
Examples of claims |
Small scratches, minor collisions, and loss of the vehicle |
Vehicle loss, total damage |
Source: OJK
After understanding the fundamental difference, now let's discuss when your condition is more suitable to choose all risks than TLO.
If you have just bought a new vehicle, especially the category of luxury cars, choosing all risks is almost always recommended.
The reason:
The cost of repairing new cars or luxury cars is very high.
Even small blisters can result in the expenditure of millions of IDR.
Comprehensive protection gives calm in the early years of ownership.
Example: The new car worth IDR 500 million has blisters on the door. Without all the risk, you have to pay your own repair fee that can reach IDR 3-5 million.
In addition to ownership of new cars, there are other situations where choosing all risks becomes a wise decision: when frequent activities in dense traffic areas.
If you drive frequently in big cities like Jakarta, Surabaya, or Medan, the risk of small accidents such as scratches, minor collisions, or bumps with other vehicles becomes much higher.
Why choose All Risk in this situation?
Solid traffic increases the possibility of small accidents.
Minor repair costs remain high in official workshops.
All risk bears all types of damage, no matter big or small.
According to data from Central Statistics Agency (BPS) In "Land Transportation Statistics 2022", more than 75% of traffic accidents in Indonesia occur in urban areas, with the majority in the form of light collisions.
In addition to the solid traffic factor, another consideration of choosing an all risk is if the car is used for daily operational activities.
If your vehicle is used for business purposes such as shuttle services, light logistics, or other commercial activities, the risk of daily use is certainly higher.
Advantages of Choosing All Risk for Operational Cars:
Small damage due to intensive use can be directly claimed.
No need to bear the repeated cost of repair.
Helps keep the company's assets in excellent condition.
To make it easier for you to make decisions, here is a concise table:
Your condition |
Recommended insurance options |
|---|---|
New car <5 years |
All risk |
Luxury cars |
All risk |
Live/move in big cities |
All risk |
Vehicles for operational business |
All risk |
Cars aged > 5 years, rarely used |
TLO |
Vehicle value below |
TLO |
Choosing between all risks and TLO is not just a matter of premium prices, but a matter of protection needs based on the condition of your vehicle and lifestyle.
If you have a new car, move in a dense area, or use a vehicle for operations, choosing an All Risk policy is a wise decision to avoid unexpected costs in the future.
Remember, overall protection is not an expense, but an investment for your comfort and safety on the road.
For a trusted All Risk insurance option and easy claim process, check Oona Car Insurance now!
