CarDecision

All Risk or TLO?the real cost of choosing wrong

A decision framework based on your car's age, value, and how Jakarta traffic actually treats bumpers.

7 min readUpdated 20 Aug 2026By Kristjan Ploompuu · Founder
The two options

Two products, one confusing naming scheme here is what they actually do

Indonesian car insurance comes in exactly two flavors, and both names oversell. All Risk(also sold as “comprehensive”) covers partial damage — scratches, dents, a crumpled fender, a cracked mirror — plus theft and total loss. Despite the name, it does not cover all risks; more on that below.

TLOstands for Total Loss Only, and this one at least means what it says. It pays out only when your car is stolen or when repair costs reach at least 75 percent of the vehicle's market value. A wrecked bumper, a keyed door, a shattered windshield — TLO pays exactly Rp 0 for all of it. If the car still drives, TLO usually still owes you nothing.

That 75 percent threshold is the entire decision. Everything else — premium, deductible, add-ons — flows from whether you want the insurer involved in small damage or only in disasters.

The numbers

What each one costs OJK sets the bands

Premiums for both products sit inside rate bands set by the regulator (OJK, under SEOJK 6/2017), so insurers compete on service and add-ons more than headline price. Indicatively:

All RiskTLO
Annual premiumRoughly 1.05–3.5% of vehicle valueRoughly 0.2–0.8% of vehicle value
Covers partial damageYes — dents, scratches, collision repairNo
Covers theft and total lossYesYes (loss or repair cost at 75%+ of value)
DeductibleAround Rp 300k per own-damage claimApplies on the rare claim that qualifies
Car age limitsOften unavailable or loaded past ~10 yearsAvailable for older cars
On a Rp 300M carRoughly Rp 3.2M–10.5M per yearRoughly Rp 600k–2.4M per year

Two quirks worth knowing. The rate percentage runs higher for cheaper cars and lower for expensive ones — a Rp 150M city car sits near the top of the All Risk band, a Rp 1B SUV near the bottom. And rates vary by region, because Jakarta traffic and Papua roads are not the same actuarial universe.

Neither one includes floods, earthquakes, or liability
Flood, earthquake, riot and civil commotion (huru-hara), and third-party liability (TJH) are paid add-ons on both All Risk and TLO — not included by default. If you park in a Jakarta basement or live anywhere that floods, the flood extension is not optional decoration. Price the add-ons before comparing headline premiums.
The framework

How to actually decide three questions

1. How old is the car?Past roughly 10 years, most insurers either refuse All Risk or charge an age loading that eats the value proposition. TLO stays available for older cars, which conveniently matches the math — an old car's repair bills are a smaller share of your finances, but theft of the whole car still hurts.

2. Where does it live? Jakarta traffic is a rounding error generator for bumpers. If the car commutes daily through dense city traffic, small-damage claims are not a hypothetical — they are a schedule. All Risk earns its premium there. A car that mostly sits in a gated garage in a quiet town collects fewer scars.

3. Could you absorb a Rp 5–15M repair without flinching? That is the realistic range for a decent-sized panel-and-paint job at an authorized workshop. If that number would wreck your month, All Risk is buying you a real thing. If it is an annoyance you would pay from savings, TLO plus a disaster fund is the cheaper structure.

  • New or financed car, city driving, repairs would sting: All Risk. Leasing companies usually mandate it anyway.
  • Car 8–10+ years old, or worth under roughly Rp 100M: TLO. The All Risk premium starts rivaling the car's annual depreciation.
  • Somewhere in between: run both quotes and compare the All Risk premium against what you actually spent on bodywork in the last three years.
The Rp 300k deductible changes claim behavior
With around Rp 300k deducted per own-damage claim, tiny scratches are not worth claiming even on All Risk — you would pay most of the repair yourself and still log a claim. All Risk is for the Rp 2M+ repairs, not the parking-lot kisses.
Coming soon

The liability rule that will affect everyone TPL is on the way

Neither All Risk nor TLO covers damage you cause to other people — that is third-party liability, currently an optional add-on that most Indonesian drivers skip. That is set to change: a mandatory motor third-party-liability scheme is pending under the P2SK Law. The implementing rules have slipped past their January 2025 target, but when they land, every driver will need TPL regardless of which own-damage product they chose.

Practical takeaway: when you compare quotes, price the TJH add-on now. It is cheap relative to what a liability dispute costs, and it future-proofs you against the rule change. Riding two wheels instead? The logic differs — see our guide to scooter accident cover in Bali.

FAQ

Common questions

Does All Risk really cover everything?
No. Standard exclusions include flood, earthquake, riots, driving without a valid license, drunk driving, racing, and commercial use on a private policy. "All Risk" means all accidental physical damage to your own car — within a list of exclusions the policy wording spells out.
My car got hit and the repair is 60 percent of its value. Does TLO pay?
No. TLO pays only when repair costs reach at least 75 percent of market value, or the car is stolen. At 60 percent, a TLO policyholder pays the full repair out of pocket. This is the scenario that makes people regret choosing TLO on a car they could not afford to fix.
Can I switch from All Risk to TLO as the car ages?
Yes, and it is the standard playbook: All Risk for the first 5 or so years while the car is valuable and repairs are pricey relative to nothing, then TLO once the premium stops making sense. Re-quote at every renewal rather than auto-renewing.
Is theft covered under both?
Yes — theft of the entire vehicle is covered by both All Risk and TLO. Theft of parts or belongings from inside the car generally is not, under either product.

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This guide is general information, not regulated insurance advice. Estimates are indicative — final premiums, terms, and eligibility come from the licensed insurer or broker. Rules and rates change; verify anything load-bearing before you rely on it. See our methodology and disclosure.