ENG
English
Bahasa Indonesia
7 Mins read
Copied!
TLO and All Risk are both important, but they serve different purposes. This article helps you understand when to choose TLO over All Risk, complete with premium comparisons, ideal car age, and suitable situations. It also includes official data from Indonesia’s Financial Services Authority (OJK) and tips for transitioning coverage.
Own an old car but still don't want to let it go? Or are you looking for a cost-effective way to maintain vehicle protection without breaking the bank? Many vehicle owners are torn between TLO and All Risk insurance.
According to OJK, Car insurance premiums are determined by vehicle category, region, and market value. But what's often overlooked is that the type of coverage should be tailored to the age of the car and how you use it.
In this article, you will learn:
The difference between TLO and All Risk
OJK official premium data
When you should choose TLO
Tips for transitioning from All Risk to TLO
Premium simulation and light case study
To choose the right coverage, you first need to understand the fundamental differences between TLO and All Risk. Let's compare them.
Car insurance comes in two main options: All Risk and TLO. To help you make the right decision, here's a detailed comparison:
Aspect |
All Risk |
TLO |
|---|---|---|
Risk Coverage |
All damages (minor to major), theft, fire, third-party risks |
Only damage ≥75% & total loss |
Premium rate (%) |
1.79%–3.59% of vehicle value (Region II) |
0.44%–0.53% of the vehicle value |
Ideal car age |
<5 years |
>5 years |
When to use |
Intensive use, high risk areas |
Light use, older vehicles |
Additional riders |
SRCC, flood, TPL, roadside assistance riders |
Limited riders may be available |
Disclaimer: Premium data refers to OJK Circular Letter No. 6/SEOJK.05/2017 For Region II (Jabodetabek). Simulations and percentages may vary depending on vehicle condition, insurance company, and selected additional coverage (riders).
Not sure about the difference between All Risk and TLO? Check out the full explanation here. The Difference Between Comprehensive (All Risk) and TLO Car Insurance in Indonesia.
All Risk Insurance provides maximum security, especially if you:
Have a new or expensive car,
Often in crowded cities or extreme road conditions,
Want all-in-one protection without the hassle of constantly checking the policy, because claims can be submitted digitally via Oona claim page.
On the other hand, TLO insurance is more practical and cheaper if:
The car is old and the market value of the vehicle has decreased drastically,
Routine use is only for daily needs and rarely in disaster zones,
You want cost efficiency and still be able to add riders like flood or roadside assistance if needed.
After understanding the type of coverage, it's also important to consider the cost. Here's official premium data from the Financial Services Authority (OJK) for your consideration.
Based on the provisions in OJK Circular Letter No. 6/SEOJK.05/2017, car insurance premium rates are regulated based on operational area, vehicle category, and insured value.
The following is a comparison of premiums for non-bus/non-truck passenger cars in Region II (Jabodetabek):
Policy Type |
OJK Tariff Range |
Premium Simulation |
Risk Coverage |
|---|---|---|---|
All Risk |
1,79% – 3,59% |
IDR 3,580,000 – |
All types of damage + theft |
TLO |
0,44% – 0,53% |
IDR 880,000 – |
Only total loss or damage ≥75% |
Disclaimer: This premium simulation is only an estimate. Actual amounts may vary depending on region, insurance company, vehicle age, daily usage, and additional riders.
Interested in learning how to calculate premiums in detail? Check out the guide at Car Insurance Pricing: A Complete Guide to Calculations & Determining Factors.
What Does It Mean for You?
For cars with a market value of IDR 200 million, All Risk premiums can be 5–8 times more expensive than TLO.
Although more expensive, All Risk covers thousands of small risks that can occur at any time, from light scratches in the parking lot to damage due to short circuits.
Meanwhile, TLO remains ideal for those of you who only want protection against major incidents such as vehicle loss or total accidents.
So, if you've calculated the premium, it's time to find out: when exactly does TLO become a more sensible choice than All Risk?
Not every car requires the comprehensive protection offered by All Risk. In many cases, Total Loss Only (TLO) is a smart choice—especially for those seeking cost savings without sacrificing core coverage. Here are some situations where TLO is more appropriate:
Situation |
Why Choose TLO? |
|---|---|
Cars >5 Years Old |
The market value of the vehicle has decreased → the All Risk premium is no longer commensurate with the benefits |
Light Use |
The car is only used for light daily needs or rarely goes out of town. |
Limited Budget |
TLO premiums are much lighter but still protect against major risks such as total loss. |
Policy Step-Down Strategy |
Use All Risk at the beginning (years 1-2), then switch to TLO when the vehicle value starts to decrease. |
Disclaimer: TLO coverage is recommended for vehicles that are no longer financially viable with all-risk coverage. However, every decision should still consider regional factors, usage intensity, and the overall condition of the vehicle.
While TLO offers many advantages, that doesn't mean All Risk is irrelevant. There are certain circumstances where All Risk remains the best option.
Use All Risk Insurance if:
The car is still new (<5 years) with a high risk of minor damage,
Active driving or vehicles often pass through dangerous roads,
Living in an environment with a risk of disaster, riots, or flooding—especially when combined with relevant riders.
So what if your needs change over time? The answer: use the right policy transition strategy.
Choosing the right policy doesn't always mean sticking with one type of coverage for the life of your car. Instead, a policy transition strategy can help you balance costs and benefits as your vehicle ages.
Here is a step-down guide to strategies that can be applied:
Car Age |
Recommended Type of Policy |
Reasons & Additional Notes |
|---|---|---|
Years 1–2 |
All Risk + Rider Complete |
Vehicle value is still high → suitable for full coverage. Add TPL, SRCC, flood riders. |
Years 3–5 |
All Risk / Start Transition to TLO |
Market value begins to decline → evaluate premium efficiency. Riders can be maintained according to risk. |
After the 5th Year |
TLO + Basic Rider (optional) |
Older vehicles → TLO is sufficient. Add flood rider or TPL if still relevant. |
Disclaimer: This strategy is flexible depending on vehicle condition, area of use, and daily risk requirements. Consult with your insurance provider for the most efficient premium simulation while still providing coverage tailored to your situation.
Want to know the complete steps for choosing the best car insurance? Read on Best Car Insurance in Indonesia: A Guide to Choosing.
But before you decide to change your policy, make sure you check the following important things to ensure a smooth transition.
Before you decide to switch from an All Risk policy to a TLO policy (or vice versa), there are several important things you need to check to ensure the transition goes smoothly and does not disrupt your vehicle's protection.
Here is a list of mandatory checks:
Things to Check |
Explanation |
|---|---|
No active claims |
Make sure all previous claims have been processed before changing policies. |
Vehicle value has been updated |
Use current market prices to keep the coverage value relevant. |
Make the switch before the policy expires |
Avoid a lapse in protection due to the grace period. It's best to apply for a transition at least 1–2 weeks before the expiration date. |
Use official digital channels |
You can easily change your policy through digital services at myoona.id, without having to come directly to the office. |
Additional Tips:
Save digital and printed documents of the new policy for quick reference when needed.
Consult with your insurance provider if you want to add a rider during the transition, so you don't lose additional coverage.
Also ensure access to partner workshops near you—check List of Oona Insurance Partner Workshops for the location.
If you have understood all the steps above, now is the time to conclude: which protection best suits your needs?
There is no single answer to which is better between All Risk and TLO. It all depends on the vehicle’s value, usage intensity, daily risks, and your budget.
Choose All Risk If you:
Have a new car with high value
Active driving in congested or risky areas
Want comprehensive protection, including small risks
PilthemGROUND If you:
Using an old car (>5 years)
Want more economical premiums but still be protected from major losses?
Cars are used for light needs and rarely take on major risks.
If you need flexible and digital-ready car insurance ,Oona Car Insurance provides All Risk and TLO options complete with riders such as flood, TPL, SRCC,and roadside assistance. The claims process can be done directly via Oona digital claim, conveniently without having to come to the office. Check premium rates and customize your protection now!
