Best All Risk and TLO Vehicle Insurance

Vehicle insurance, whether for cars or motorbikes, is highly recommended for every vehicle owner. Why? Because the condition and condition of the vehicle is unpredictable, as well as the risk of an accident that never unexpectedly arrives.


The definition of vehicle insurance is a type of  insurance  that covers specifically for vehicles, where the risk that is likely to occur in the vehicle will be transferred to the insurance company or insurance company.

We cannot predict what will happen in the future. Therefore, buying a vehicle insurance policy is one way to anticipate risks, namely by transferring them to the insurance company.


Everyone will want to have good insurance. However, it is not easy to choose a vehicle insurance company. Many may be available and offered, but not necessarily the best service.

Therefore, to get the best results, the easy way is to compare vehicle insurance products online. You can get the best and most comprehensive comparison of insurance products that can provide services as needed.

Before choosing the best vehicle insurance product according to your needs, you should first know some information regarding the following vehicle insurance. This is done, so that you better understand the insurance products offered by several companies, and you can choose them according to your needs.

Vehicle insurance which includes car and motorcycle insurance is an insurance service in the form of vehicle protection, both cars and two-wheeled vehicles, or motorbikes. Where, the various risks that if your car occurs due to an accident, the losses can be transferred to the insurance company or insurance company. 

Vehicle insurance is also more often used for cars than for motorbikes, because cars have a higher risk of loss. Therefore, most car owners must immediately register car insurance, even when a new car is purchased.

History of Car Insurance

Before offering protection services for cars and motorbikes, motor vehicle insurance in the past, to be precise in London, only provided insurance facilities for machines. Usually, the insured engine was a train engine, namely in 1896. 

Furthermore, in 1898, motor vehicle insurance was present, and it was known as the Law Accident Insurance Society. After World War I, namely in 1914, the number of road accidents also increased. 

Thus, it raises a new need, to bear the risk of motor vehicle losses. In 1974, the Road Traffic Act appeared, which was in line with the European Economic Community decree, which stipulated all motor vehicle insurance policies. 

This also raises public awareness of the importance of having insurance, especially vehicle insurance, especially car insurance, in order to minimize losses. 

Still in Europe, Britain also established insurance for The Red Cross, which changed its name to The White Cross. This motor vehicle insurance has a guarantee in the form of All Risk, which was subsequently introduced in the Netherlands. 

The term All Risk has become familiar in Indonesia, because the Netherlands also marketed this insurance during the colonial period. However, in Indonesia now the term All Risk is replaced by the term ‘comprehensive’ or joint coverage. Even so, the term All Risk is still often used by insurance companies. 

Types of Car Insurance

Talking about car insurance, there are two types of car insurance coverage in Indonesia, namely All Risk car insurance and TLO car insurance (Total Loss Only). 

1. All Risk / Comprehensive

The first is an All Risk or comprehensive car insurance, where this car insurance can protect the car more widely and thoroughly from various damages. Starting from minor damage, such as fine scratches, dents, and other minor damage, to major damage such as a collision, which causes the car’s body to deform.

Not only damage, this type of car insurance also protects the car from car theft. Thus, all types of damage and loss can be covered by car insurance as long as it is written in the car insurance policy.

There are also more types of All Risk or Comprehensive car insurance coverage, for car owners whose cars are less than 5 years old, especially new vehicles. However, for those of you who have a car that is more than 5 years old, you can still buy car insurance with an All Risk guarantee.

However, this insurance guarantee follows the regulations in Indonesia, where you will be charged a loading rate of 5 percent each year.

2. Total Loss Only

Meanwhile, TLO (Total Loss Only) car insurance is an insurance service in the form of protection for cars, from the risk of loss.

In addition, TLO car insurance also covers risks, resulting from theft and damage if the cost of repairs is estimated to be equal to, or exceeding 75 percent of the price of the vehicle, just prior to the loss.

In essence, this type of insurance is more limited than the All Risk or Comprehensive type of vehicle insurance. So, if there is a risk that occurs and there is a loss whose value is below 75 percent, then you will not get reimbursement from the insurance company.

In addition, usually TLO type car insurance is only specifically for new and used vehicles. However, actually, regardless of the condition of the vehicle, whether it’s new or used, you can buy TLO insurance coverage.

All Risk Car Insurance Can Protect Cars from All Risks?

When viewed from the explanation, All Risk car insurance can provide comprehensive protection from all risks of damage and loss. However, it turns out that there are some risks that All Risk car insurance cannot cover. 

However, you can decide to expand your car insurance coverage. Where, the expansion of this coverage includes things that may happen to the car due to:

  1. Natural disasters such as floods, hurricanes, tornadoes, storms and water damage.
  2. Unrest. 
  3. Earthquake / Tsunami. 
  4. Sabotage / Terrorism. 
  5. Third Party Liability (TPL). 
  6. Driver’s Accident. 
  7. Passenger Accident. 
  8. Passenger Legal Liability (TJHP). 
  9. Authorized repair shop.

Indonesia itself is a country that has the greatest possibility to experience things like the ones above. Call it like a natural flood disaster, which every year inevitably occurs in several areas up to the capital city.

So, for people who want to get car insurance coverage from some of the risks above, you can expand the coverage, from the main car insurance policy when you first apply. 

The rate for the expansion of this protection varies. 

For those who are curious, you can find out in full, regarding what the latest protection expansion rate is, you can see it in OJK Circular No. 6 / SEOJK.05 / 2017.

Can All Risk Car Insurance and TLO Car Insurance Be Combined?

In Indonesia alone, policy guarantees from All Risk car insurance and TLO car insurance can be combined. In fact, in fact, when you buy a vehicle, especially a car on credit through a leasing company, for insurance they apply a combination of All Risk and TLO car insurance.

Not without purpose, the merger of the two car insurances is done so that the premiums borne by the customer does not make it too stressful. How does it work?

The following is an example of an illustration of how it works, from combining the All Risk car insurance policy guarantee and TLO:

Customer: Buying 1 car (credit) through a leasing company.

Duration: 5 years

Fill in the policy agreement: The installment period for a new car is 5 years.

– First Year: Comprehensive / All Risk Insurance

– Second Year: Total Loss Only (TLO) Insurance

– Third Year: Total Loss Only (TLO) Insurance

– Year Four: Total Loss Only (TLO) Insurance

– Year Five: Total Loss Only (TLO) Insurance

Although it can be combined, in choosing a vehicle insurance guarantee or car insurance, it returns to the needs and financial conditions of the customer. In essence, if you have sufficient funds and a broad coverage guarantee, you can choose All Risk or Comprehensive car insurance.

However, if your finances can only accommodate vehicle loss guarantees, you can choose Total Loss Only (TLO) car insurance coverage. Whatever the car insurance is, it all comes back to your decisions and needs as a vehicle owner. 


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