Most of you must own assets such as motor vehicles that are not free from risks like traffic accidents, theft, and others. For those of you who have insured your car, you will no longer have to worry about the risks since the risks will be covered by the insurance company.

Nonetheless, for those of you who plan to insure your car, you should first find out the types of insurance that best suit your needs. There are two types of insurance that you can choose to cover your car, namely:

1. Total Loss Only (TLO)

By definition Total Loss Only (TLO) “only covers total loss”. In car insurance, the term total loss means the cost to replace the loss has a value of ≥ 75% of the vehicle’s price prior to the loss, and cover the loss if the vehicle is stolen.

2. Comprehensive

Comprehensive can be defined as total risks. This means the insurance company will pay the claim for all kinds of damages from light damage to severe damage as well as stolen.

To ensure that you have maximum protection for your car, you can add the scope of coverage in your insurance policy. The scope of coverage includes:

  • Riots, Commotion,
  • Hurricanes, storms, floods & landslides
  • Earthquake, tsunami, volcano eruption
  • Third party Liabilities

Now that you know the difference between the two types of car insurance, which one suits your need? Check the premium for your vehicle here.