Auto Insurance is one of the most popular type of insurance meant to protect motor vehicles such as cars, motorcycles, including trucks and heavy equipments like an excavator for example. Protecting your vehicle with auto insurance is a very important thing to do since in a modern world transportation has become one of the basic needs, besides that vehicle is a very risky asset, we take them out on the street everyday where anything can happen especially in a big city’s busy streets, we could have crashed or worst… we could have lost it in a criminal action such as theft or burglary since vehicles especially cars and motorcycles are pretty vulnerable for stealing actions no matter how sophisticated the anti-thief system you have installed.
Basically there are two kinds of protection in auto insurance, they are :
TLO (Total Loss Only) Cover
This type of auto insurance protection only covers a total loss risks such as theft/burglary or a total damage which its recovery fee exceeding 75% of its total sum insured (market value for the vehicle when the incident happens). You can protect all kinds of vehicles you might have, family cars, motorcycles, business vehicles such as rental cars, trucks or heavy equipments with this kind of coverage.
Comprehensive / All Risk Cover
This is the type of auto insurance protection which covers all the risks that might happen to your vehicle from a single scratch to a total loss condition as I mentioned above. Normally insurance companies will only allow this kind of coverage for private use vehicles such as family cars or any other private cars, but in some cases they might allow this kind of protection for trucks or business purposed vehicles with additional terms and conditions and of course the rate is higher than a normal car coverage.
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