all risk
Also called: semua risiko
A type of vehicle insurance that covers almost all damage, with certain exclusions.
What it means
All risk is a type of vehicle insurance protection that covers losses from various events, except those explicitly excluded in the policy. Its coverage is broader than total loss only, including minor to severe damage. Although called all risk, it does not mean everything is guaranteed, because the policy still contains a list of exclusions. The premium is generally higher because the coverage is broader.
Why it matters for families
All risk provides more peace of mind for families with high-value vehicles or those used daily. However, the higher premium must fit the budget and should not come at the expense of the emergency fund. Misunderstanding what all risk means can leave families disappointed when a claim is rejected because it falls under an exclusion. Read the list of exclusions before buying.
Example
For example, a family car is insured with all risk at a higher annual premium than TLO. If the car is slightly dented from being scraped in a parking lot, a claim can be filed according to the policy terms, though there may be a deductible. But damage from use outside the policy terms may be rejected.
Common misunderstanding
The term all risk is often taken to mean every event is definitely covered. The correction: all risk still has exclusions and claim conditions that must be met.