Total Loss Only (TLO) is a term known in vehicle insurance. Although the use of term is lost (Loss), but the risks are borne not just a loss of the vehicle due to criminal acts but also the damage. However, the damage incurred in TLO insurance is at least 75 percent.
75 percent damage was deliberately become a benchmark because it can be ascertained that the vehicle badly damaged in conditions that could no longer be used. Vehicle as a mobility tool has not been able to function even if the vehicle is actually still there.
In essence, TLO type vehicle insurance is a type of insurance coverage which covers loss vehicle when the vehicle is in an accident with damage above 75 percent, vehicles on fire, stolen or missing due to the forced deprivation.
That is, if the vehicle is insured with protection type TLO suffered minor damage such as scratches on the body, mirrors broken, or minor damage to another, then the owner cannot claim insurance. Different case if the car wrecked shapeless due to unfortunate collision in which the damage is above 75 per cent then please claim.
Really insurance TLO (Total Loss Only) The Bear?From the initial explanation, comes to mind when it guarantees TLO insurance coverage is 'bear'. Bear due to the risk of ownership of the vehicle was not merely lost because of stolen or destroyed due to a fatal accident, but other minor risk. Open odds vehicle damage due to negligence of themselves or others that are minor like body dents or scratches.
In addition, the choice fell on All Risk insurance usually because of a recommendation from the sales of vehicles or even insurance agents. Oh yes, the All Risk insurance is a type of insurance which covers loss on major or minor damage to the vehicle, malicious acts of others, and the vehicle was stolen. It could even be extended to cover the unrest, natural disasters, third party guarantees, and others.
Because of the risks that are guaranteed TLO narrower, many think to take the All Risk insurance. Consequently, the money must be paid for definitely higher insurance premiums. Yes definitely, all risk insurance premiums more expensive than TLO.
Sometimes people escape considers this. Risk what awaits the beloved vehicle when it is used?
Needs to be straightened out some insurance against the opinion of those TLO. Here is his review of insurance types TLO why it was interesting.
Insurance TLO make us more cautious driving
"It's using the All Risk insurance, something happens immediately claim." This mindset can make us neglect to be careful. Conversely, if the risk of it not covered by insurance will force us to think a thousand times to make carelessness. The risk of carelessness is expensive because they must spend their own and not covered by insurance.
TLO insurance makes us more efficient
As mentioned in the beginning, sloppy is expensive. Thus, those who took out TLO types of insurance can be self conscious so often do carelessness. And if we suppress carelessness, by itself, can save money a lot. Why pay a premium above the actual risk can be overcome yourself.
TLO reasonable insurance premiums cheaper because it is quite a claim only when the vehicle suffered losses due to lost or severely damaged. Differences with All Risk insurance premiums which requires expensive because we claim it many times. Frequent filing this claim makes the operational cost insurers swell and it is charged to the customer.
TLO insurance complements the expansion of coverage
We recommend that you take out an insurance policy TLO with the expansion of coverage for floods, earthquakes, and riot. Why? This risk is likely to occur.
Who said TLO warranty coverage shrinking every year?
Indeed, the sum insured TLO insurance coverage will continue to decrease annually from the initial price of new vehicles. For example, the insurance company will give an assurance of 100 percent in the first year, then dipped to 80 percent in the second year, and reduced again be 70 percent in the third year.
But it could also make the TLO warranty coverage remains constant 100 percent annually. Provided that pay premiums paid each year. So each year renewed the insurance policy during the warranty period of 365 days.
Here, the role of insurance is ready to bear the risk. However the basic principle of insurance is to take over the huge losses hard to bear alone. Thus, the risk of course that the frequency of occurrence of insured small or minimal. But once that happens makes us suffered heavy losses. Included here fatal loss of vehicle due to damage or acquired thieves.