TLO car insurance stands for Total Loss Only car insurance. As the name implies, TLO insurance is insurance where the coverage provided is only limited to loss and reimbursement of costs will be done if the damage exceeds 75% of the coverage price. This means that if the damage is not more than 75% of the price of the insured car, the insurance company will not accept the claim. Reimbursement for minor damage such as scratches or blisters is usually varied and depends on the damage of the car and the rest is at the customer's expense. Because the protection offered is very limited, TLO car insurance has a premium ratio that is much lower than comprehensive car insurance. Even though the premium amount is low, it does not mean that TLO insurance will be more profitable.
If you have a new car, TLO vehicle insurance is not recommended. When you have a new car, surely you will be as much as possible to keep the car from being renewed or damaged. However, the risk of vehicle ownership must still be present. Even if you have been careful, it is possible that a car or other vehicle will hit you. This is just damage due to carelessness. Imagine if someone's intentional damage, such as the rear view mirror that was taken or the part of a car that was gouged out. Surely all these things are very possible. If you have TLO insurance, minor damage as above, will not be guaranteed by insurance. This means, the premiums you have paid are in vain because you do not get a guarantee for the risks incurred. You have to spend IDR 500 thousand to repair the car body, or IDR 200 thousand to polish the blisters on the car and much more for other damage.
Inevitably you have to spend these funds so that your new car looks good. The funds issued are also your personal money. TLO insurance has a relatively lower premium, so you seem more efficient. However, if you still have to spend money to treat minor damage, you better pay a more expensive premium and the damage can be guaranteed by the insurance company. In addition, 75% damage or loss will usually occur when the vehicle owner is caught off guard. But how careless are you when you find out that the vehicle you have now is new? Of course you will be more careful.
