Some Types of Car Insurance You Need to Understand

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Some Types of Car Insurance You Need to Understand

In this modern era, people keep developing in both economy and human resource. Hence, the existence of insurance is very important and getting more popular to protect the family from any unwanted accident. Until today, there have been many companies that do not focus on the life or health insurance as it used to be before. There have been other protections provided, including the insurance for your car.

Car insurance

However, although the car insurance has been quite popular these days, there are still many people who are willing to buy insurance for their car who do not understand about the types of this insurance. Therefore, if you are curious about the types, this article will be a helpful guide for you to get to know the types of such insurance better. Here are two main types of the insurance of car that you need to understand.

  1. Total Lost Only

The first type of car insurance is called the Total Lost Only insurance or TLO. This type is quite cheap compared to another one. If you buy this insurance, you can only do an insurance claim if there is a >75% loss or damage of your car. Hence, whether your car gets into an accident or its parts are stolen for more than 75% damage or loss for a robber, you can claim for that to the company. Nonetheless, if the damage or loss is less than 75% of the car, you cannot do any claim for your car.

  1. Comprehensive/All Risk
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Another type of car insurance is named all risk or comprehensive insurance. As we can see from its name, this insurance protects your car from any risk, damage or even lost. Hence, even if your car only gets a small accident such as scratches, you can claim for that to your insurance company. All in all, this insurance will guarantee and protect your car from small to big accident or damage. As this insurance gives a full insurance and protection, you need to pay more for this insurance. It is obviously more expensive than the TLO one.

Those two previous passages are the types of car insurance that you need to consider before you buy one. Hence, before you decide the insurance of car that you want to buy, make sure that you have already understood each of the type’s regulation and consideration related to the fee and protection. Therefore, you will have a satisfying service as you have expected before.

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