Do not think about it, that transport insurance is only for the latest cars from dealers. You can also use the services of the best transportation insurance company for surplus transportation if you wish.
Deciding to buy a transport insurance product on a second-hand car can be a very wise option. The reason is that we live in an uncertain land.
A lot can happen to make it worth your while to think your best about using special leftover car insurance. One type of auto insurance that is often recommended for surplus cars is the TLO type of insurance.
So what is TLO insurance and what are the pros and cons for leftover cars? Follow this full explanation further.
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A moment about TLO Seguros
Also, the name is Overall Loss Only, this type of insurance provides guarantees for protection against total or total loss. Where, the insurance guarantees will be legal when the damage or loss that occurs is of great value.
For example, damage caused by a disaster that causes up to 75% more acute damage or disappears due to a criminal act and has not been found more than 60 days since the problem was reported.
In a way, the new insurance industry will provide a guarantee if the leftover car that belongs to us is stolen or faces serious damage of at least 75%. Of course, it must match the determination recorded in the approved insurance policy.
The bonus amount for the TLO type of insurance itself is much cheaper than the All Risk type of insurance. This is because in TLO insurance there is a minimum determination for the relationship of damage to the means of transport. Not to mention that there are several conditions and special determinations that must be met.
On the other hand, for All Risk insurance, the guarantee provided usually covers minor to severe damage. Scratches on the car body, damage due to theft and the like as agreed in the insurance policy.
Advantages and Disadvantages of TLO Insurance for Used Cars
When viewed in more detail, TLO type insurance is indeed considered more perfect for waste transportation. But, in fact, this insurance also has advantages and certain disadvantages when used as protection against automobile debris.
Also, some of them can be used as estimate material.
The advantages of TLO insurance for used cars
Provide maximum protection against various risks.
An important purpose of transportation insurance is to provide special protection. In other words, used car insurance has an anticipatory purpose in the face of an uncontrollable situation, such as the risk of exhaustion or serious damage due to an accident on the road.
Used transport tools are more susceptible to damage
A car that is more than 5 years old, especially if it has a fairly long distance, definitely has the potential to face more problems. Starting from the field of engine quality to other similar ones.
Running on the financial stability of the vehicle owner
The meaning of the above statement is that insurance can help you, each owner of the remaining transportation equipment, to facilitate the control of financial stability. The reason is that the fee to be paid for the remaining transportation equipment that is lost or damaged is very high.
Disadvantages of TLO insurance for used cars
How to file a TLO insurance claim is classified as complicated
Learn how filing a residual auto insurance claim goes further and takes less time compared to the latest type of auto insurance. Because, TLO used car insurance requires an appraisal and survey to get the right assessment.
The bonus offered leads to more expensive
Given the much higher risk, don’t be confused if the TLO insurance premium on the leftover car is more expensive compared to the insurance premium on the new car. In addition, there is a freight rate bonus that is based on the age of the transport equipment.
If the means of transport you have is still of legal age, of course, the risk will also continue to be great. In this way, the chance of destruction also increases.
As such, the insurance industry often assigns loading fees ranging from 5-10% to leftover cars.
Not bear the destruction of light
As explained above, the damages guaranteed in this insurance is at least 75% of the total means of transport. As a result, when the car sustains minor damage such as a scratch or the engine stalls in the lane, the claim will not be approved.
Not giving 100% change when there is a loss
Who wants their car stolen by an irresponsible person? That is why we choose insurance to provide protection against such risks, right?
But unfortunately, the insurance company does not want to provide 100% compensation for the loss of the transport equipment when it runs out. There are many reasons, ranging from the number of means of transportation decreasing every year, the destruction of car engines, and many more.
Typically, exhaustion injury compensation will only be awarded for about 80% of the cost of transportation.
Understand the benefits and find out what the weaknesses are, then decide
Now you know the benefits and drawbacks of using TLO insurance for surplus cars, right? Well, this can be used as estimating material before you decide to purchase TLO insurance on your surplus cars.
Understand that the presence of this type of insurance is very important to prevent various risks that occur while driving. But also understand what the shortcomings are, so that you do not regret it in the future.