TL;DR: All‑Risk pays for most accidental partial and total losses (subject to exclusions and deductibles). TLO (Total Loss Only) pays only when repair costs meet a defined threshold (often 70–80% of insured value) or for total theft. High‑exposure drivers typically benefit from All‑Risk; low‑mileage drivers with a cash buffer can rationally pick TLO.
Table of Contents
- 1) Definitions & Boundaries
- 2) Personal Stories & Lessons
- 3) Real‑World Ranges: Premiums & Claims
- 4) Visuals: Spectrum, Flow, Trend
- 5) How‑To: Choose Wisely
- 6) Actionable Templates
- 7) Expert Notes & Tips
- 8) FAQ (People Also Ask)
- 9) Subscribe & Discuss
- 10) Important Disclaimer
1) Definitions & Boundaries
All‑Risk (often marketed as “comprehensive”) covers accidental physical loss or damage unless excluded. Common exclusions include wear and tear, mechanical/electrical breakdown, pre‑existing damage, and intentional acts. Catastrophe perils (e.g., flood or storm) may require endorsements with specific deductibles and sub‑limits.
TLO (Total Loss Only) pays for total theft and losses where repair costs meet or exceed a threshold of the insured value (commonly 70–80%). Partial damage below that threshold is typically not payable — a key trade‑off to understand for drivers who frequently face small to moderate incidents.
2) Personal Stories & Lessons
“Small hits” erased the savings
A driver switched to TLO to save on premiums. Two minor collisions in the first year produced combined repair estimates far below the TLO threshold, creating out‑of‑pocket costs and delayed repairs. In expected‑value terms, All‑Risk would have protected cashflow and uptime.
Severe weather: endorsements decide outcomes
With All‑Risk plus a weather‑related endorsement, a claim progressed quickly thanks to stored photos, a clear incident chronology, and multiple workshop quotes. A neighbor on TLO had extensive but sub‑threshold damage and no applicable endorsement — no payout.
When TLO wins (rationally)
A low‑mileage, garage‑kept vehicle in a secure neighborhood kept a small cash reserve for minor repairs and chose TLO. After a multi‑year claim‑free period, the owner benefited from lower premiums while self‑insuring small losses.
Documentation speed advantage
Across multiple claims, high‑quality documentation cut 10–15 days from settlement: time‑stamped photos, incident chronology, mitigation proof (towing/drying), and consistent bank details.
3) Real‑World Ranges: Premiums & Claims (Illustrative)
LCU below means “local currency units” — replace with your currency when quoting.
| Profile | All‑Risk (as % of insured value) | TLO (as % of insured value) | Typical Deductible (LCU) |
|---|---|---|---|
| Daily commuter (≈7.5–12k mi / 12–20k km) | 1.4% – 2.6% | 0.6% – 1.2% | 200 – 500 |
| Low‑mileage, garage‑kept | 1.0% – 1.8% | 0.5% – 1.0% | 150 – 400 |
| New driver / dense area | 2.0% – 3.2% | 0.8% – 1.4% | 300 – 700 |
| Claim Type | All‑Risk Typical Timeline | TLO Typical Timeline | Notes |
|---|---|---|---|
| Minor collision | D0 FNOL → D2 adjuster → D3–D10 repair → close D12–D20 | Often not eligible (below threshold) | All‑Risk advantage for daily use |
| Total theft | D0 → D3–D10 investigation → payout D20–D30 | D0 → D3–D15 investigation → payout D25–D35 | Both cover; documentation quality matters |
| Severe weather damage | D0 → mitigation D1–D3 → quotes D5–D7 → payout/repair D10–D25 | Eligible only if total‑loss threshold met | Endorsements critical |
4) Visuals: Spectrum, Flow, Trend
Coverage Spectrum
MinorModerateTotal LossTLO Threshold (e.g., 70–80%)All‑Risk pays here (if not excluded)
Decision Flow
Annual mileage high?Parking exposure high?Cash buffer ready?All‑Risk strongerTLO can work
Premium Trend (Illustrative)
2019202020212022202320242025
Replace with local market data if available.
5) How‑To: Choose Wisely
- Quantify exposure: mileage, routes, parking security, local weather risks, and driver history.
- Estimate small‑claim frequency: count incidents in the last 3 years (even if you didn’t claim).
- Price both options: get aligned quotes (same deductibles and add‑ons) from at least two carriers.
- Run scenarios: model 0–2 small claims + 1 severe event; include downtime and mobility costs.
- Stress‑test cash buffer: if you pick TLO, ensure partials won’t derail finances.
- Document & review annually: store your comparison; revisit at renewal as rates shift.
6) Actionable Templates
Policy Comparison Matrix
Feature,All‑Risk,TLO,Notes
Partial damage (below threshold),Yes,No,"TLO pays only at total loss"
Total theft,Yes,Yes,"Both cover"
Severe weather (flood/storm),Add‑on,Add‑on,"Check sub‑limits/deductibles"
Glass chip/crack,Often,No,"Check glass deductible"
Roadside assistance,Often,Optional,"Confirm limits"
Network repair shops,Wide,Limited?,"Check nearest"
Rental car during repair,Optional,No,"Add‑on in some policies"Deductible Sensitivity Table
Scenario,Deductible (LCU),Expected Claim Freq,Expected Annual Out‑of‑Pocket,Premium Change,Net Expected Cost
Urban commuter,200,0.35,400,"baseline",baseline + 400
Urban commuter,500,0.32,800,"-4%",premium*0.96 + 800
Low mileage,200,0.10,200,"baseline",baseline + 200
Low mileage,500,0.08,400,"-3%",premium*0.97 + 400Claim Documentation Checklist
Item,Status,Owner,Notes
Photos (before/after),,,"Front/rear/sides/interior"
Incident chronology,,,"Time, weather, location; police # if any"
Mitigation proof,,,"Towing, drying, anti‑corrosion"
Repair quotes,,,"At least two if possible"
Receipts & invoices,,,"Itemized with VAT/GST"
Bank details,,,"Match policyholder name"7) Expert Notes & Tips
- Threshold reality: TLO thresholds are rarely negotiable mid‑term; ask at renewal.
- Uptime matters: if a vehicle is critical for work, All‑Risk often protects productivity better.
- Loss‑prevention credits: telematics, secure parking, and anti‑theft can reduce rates when evidence is provided.
- Accurate sums insured: avoid underinsurance penalties; set realistic replacement values.
- Dispute‑proofing: quarterly photos help avoid “pre‑existing damage” arguments.
8) FAQ (People Also Ask)
Is All‑Risk always better than TLO?No. All‑Risk suits higher exposure; TLO can be optimal for low‑mileage drivers with a cash reserve.What is the usual TLO threshold?Commonly 70–80% of the insured value, but exact wording varies by insurer and region.Does All‑Risk cover partial damage?Yes, subject to deductibles and exclusions; check endorsements for perils like flood or storm.Are severe weather losses covered by default?Often not. Weather‑related perils are typically add‑ons with specific sub‑limits and deductibles.How long do claims take?Minor repairs: ~1–3 weeks; total theft: ~3–5 weeks, depending on investigation and documents.Can I switch from TLO to All‑Risk mid‑term?Usually at renewal; mid‑term changes depend on the insurer’s rules.Will a higher deductible lower premiums?Usually yes, but model your expected out‑of‑pocket and risk tolerance first.Which add‑ons matter most?Severe weather where climate risk is high; roadside assistance for long commutes; rental car if downtime is costly.What documents speed up claims?Clear photos, incident chronology, mitigation proof, comparable quotes, and accurate bank details.Is TLO okay for older vehicles?It can be, but consider parts availability, theft risk, and your cash buffer for partial repairs.
9) Subscribe & Discuss
Comment prompts:
- Have you ever regretted choosing TLO over All‑Risk (or the reverse)? Why?
- Which add‑on delivered the best ROI in a real event?
- What documentation tip shaved days off your last claim?
10) Important Disclaimer
This article is general information, not financial, legal, or insurance advice. Policies and laws vary. Always read your policy wording and consult a licensed professional before making decisions.