Car insurance All Risk or TLO: select which huh?

Awareness of Indonesia against a possible risk on the street arguably high. This can be seen from the large number of car insurance policy offered in Indonesia. This is normal because if seen the risks, many accidents that occur on the highway mainly in big cities such as Jakarta. For those who want to buy a car insurance policy, may be confused with the choice of car insurance car insurance or All Risk Total Loss Only (TLO)

To that end, car owners need to know the difference between a car and All Risk insurance TLO, what's covered and how to calculate premiums. The trick will be described in detail below. 

Why car insurance is that important?
The Importance Of Car Insurance
The importance of car insurance via

The who noted, traffic accidents became the third-biggest killer in Indonesia, after coronary artery disease and tuberculosis. According to the data of the Korlantas police, occurred as much as 105,374 case in the year 2016. Human negligence was a major factor of the accident. Understandable, too, this factor does not just come from us but also others. On the streets, the omission of other people can be bad for us. Even if someone has been driving with the code of conduct, it could just be a victim because of the inconsiderate motorists.

The risk of hurt or death can be reduced by means of improved security, but the risk of a damaged vehicle is often inevitable, both light or heavily damaged. This is what makes our vehicles, in this car, need to be insured. What's more, it takes quite a lot though the damage only in the form of blisters on the car.

Accidents are not the only reason. Begal and theft vehicles increasingly growing everywhere. Not only in big cities, small places and deserted very often become the target of the crime. The risk of losing the vehicle continues to increase. Therefore, it is very logical when someone decided to insure his car.

What is the difference All Risk car insurance and TLO?

Then, when you've decided what type of car insurance, which needs to be taken? First of all, we need to know in advance the two types of car insurance while strengths and weaknesses. Car insurance is distinguished into two:

1. Car insurance Total Loss Only (TLO)

Literally a Total Loss Only (TLO) means "only (if) the total loss". Means the insurance claim can only be submitted if there is a ' total loss '. In auto insurance, is a total loss it is damage that occur above 75% or the loss theft or spoliation. When the damage experienced by less than that, you will not get compensation for the damage. 75% benchmark is taken because the car certainly can't be used again. The extended, TLO Insurance premiums lower than car insurance all risk.

2. All Risk car insurance/Comprehensive

All Risk can be interpreted as being ' all risks '. This insurance also known as Comprehensive or overall. This means insurers would pay claims for any kind of damage, ranging from light damage, heavily damaged, and lost. Unlike the TLO, little blisters on the car, insurance will be paying out insurance claims. It's just All Risk car insurance pembiayaannya more expensive than TLO.

Not wrong, you can compare car insurance car insurance and All Risk TLO is best for your vehicle. Bandiingkan products the best car insurance from the leading insurance companies in the whole of Indonesia at

Below is a list of All Risk insurance premium rates are arranged in circular letter No. 6/OJK SEOJK. 05/2017.

How is the calculation of Car insurance premiums All Risk and TLO?

Each car insurance may have policies that in price. In General, how to calculate car insurance premiums TLO and All Risk insurance rate is based on the car's price is multiplied. Quantity rate as presented in the table above is not the same for each region and category. Then, what is the price of the premium now and how can I count?

Read Also: Tips So That Your Car Loan Approved

For example, you have a car Toyota Avanza 1.3 G variant of the M/T for Rp206 million. As you overlook the KTP Jakarta, of course, if taking insurance TLO, your car enters the region 2 with 3 categories of insurance rate the magnitude of 0.38%-0.42%. The cost of the premiums you have to pay is:

0.38% x Rp 206.000.000 Rp 782.800
If you take All Risk insurance with the insurance rate category 3 magnitude 2,08%-2.29%, the premium to be paid is:

2.08% x Rp 206.000.000 Rp 4.284.800
Magnitude of the costs of insurance premiums TLO or All Risk above later still coupled with the administrative fee, the cost of the policy, postage labels, and other costs. Based on the above calculations, All Risk insurance premiums greater than TLO. You need to provide greater funding if you want to get the car All Risk insurance policy.

The price difference in such far away can make a prospective buyer insurance policy confusion. Want a cheap, but who will pay in case of damage to the light? Want that expensive, but what if the insurance money later even charred? The insurance premium is indeed only paid once, but insurance protection is only valid for one year.

Can All Risk insurance policy and TLO Combined?
Combine These Two Types Of Insurance
Combine these two types of Insurance via

No need to be confused. You can do a combination of TLO and All Risk. For example, if the car is insured just out of showrooms or perhaps you or a used car, there is no harm in buying the All Risk insurance policy on the first and second years. After that, the car can be insured by purchasing an insurance policy TLO in the third year and so on.

Financial burdens in relation to the risk of damage to be important considerations. A new car would cost a relatively higher even if damage occurs only minor damage. When the age of the car is getting old, there is no harm in switching on the Total Loss Only.

Whether all risks Already covered by car insurance All Risk?
Private Car Protection
Extend protection on Your Favorite Car via

The amount of the insurance premium which has been described above is called the pure premium. There are some risks that are not protected by car All Risk insurance. You can decide to extend your car insurance coverage. The extension of coverage to include things that may happen on cars due to:

1. Flood, Typhoon, hurricane, and damage due to water.

2. Riot.

3. the earthquake/Tsunami.

4. Sabotage/terrorism.

5. Third Party Liability (TPL).

6. The driver's Accident.

7. Accidents of passengers.

8. Legal liability towards the passenger (TJHP).

9. Official service station.

Damage or loss due to the above things are very likely to occur in Indonesia. For example, only floods each year Community capital has to be willing to deal with the problem on this one. Quantity expansion rate protection varies. To find out how the expansion rate of the complete up-to-date protection, you can see it in circular letter No. 6/OJK SEOJK. 05/2017.

To calculate car insurance premiums TLO and All Risk coupled with the expansion of the protection, you can just add the insurance rate with rate protection expansions that you take then multiplied the value of the car.

For example, a car Toyota Avanza 1.3 G variant of the M/T for Rp206 million that you have registered in the TLO Insurance with premiums amounting to Rp 782.800 (rate of 0.38%). When you add the extension of protection to flood risks (applicable rate of 0.075%-0.1%) as well as terrorism and sabotage (rate applicable to 0.035%), which costs are to be paid:

Car insurance premiums TLO with the extension:
(0.38 + 0.075 + 0.035)% x Rp 206.000.000 Rp 1.009.400
While if You register it in All Risk insurance with premiums amounting to Rp 4.284.800 (rate of 2.08%) with the expansion of protection for flood risks (applicable rate of 0.10%-0.125%) as well as terrorism and sabotage (rate applicable to 0.05%), which costs are to be paid:

Car insurance premiums All risk by expanding:
(2.08 + 0.05 + 0.10)% x Rp 206.000.000 Rp 4.593.800
How is the calculation of the cost of premiums paid if you take the expansion of legal liability protection against passenger (TJHP)? OJK, rate of TJHP is based on the sum assured (UP) you want as presented below.

UP to Rp25 million: 1% of UP
UP > Rp25 million-Rp50 million: 0.5% of the UPS
UP > Rp50 million-$ million: 0.25% of UP
UP $ million >: determined by the company's underwriter
For example, you add TJHP with protection expansions UP Rp70 million, the cost is added to the insurance premium rate:

1% x Rp 25,000,000 = IDR 250,000
0.5% x Rp 25,000,000 = IDR 125,000
0.25% x Rp 20,000,000 = Rp 50,000
   Cost: Usd 425,000

So, choose which one?
The above illustration has given way to calculate car insurance premiums TLO and All Risk. It can be seen clearly, All Risk costs far higher than those of TLO. What if you want to add the extension of protection.

When the price of the car you have is quite high so need not cost a little though damaged, we recommend that you select All Risk. This type of insurance is also suitable for business car rentals or car course. Because of the risk of simply being damaged is high.

Car usage frequency effect on this type of insurance to be taken. The more frequently used, the greater the likelihood of escape anyway. Moreover, when the route is often used is the solid line. Again All Risk.

Conversely, if the car parking at home more often than are invited out, better choose TLO. Accidents are not the only deciding factor. The level of criminality will also need scrutiny. Crime in certain areas is high. If you live or frequently passing by in the area such as this, be sure to insure your car with TLO.

You may be thinking, "not necessarily in a year would crash on me." When thinking so and finally decided not to need to insure their car, you should consider again. We all could not foresee what happened later. We all do not want to have an accident or lose, but it's better to prevent a greater harm, right?

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