Auto insurance material damage compensation

Auto insurance property damage compensation can be used to make vehicle repairs, cover total losses, and more. See in which situations it is useful and how the amount is paid.

When you purchase car protection, you can choose which coverage will be part of it. One of them can guarantee compensation for material damage from car insurance, ideal for those who want to have protection if they harm third parties.

The truth is that car insurance can help protect not only your property but also the property of other people you may cause damage to. Therefore, third-party insurance is increasingly gaining importance.

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What is third party insurance?

Popularly known as third-party insurance, officially it is called Vehicle Optional Civil Liability (RCF-V).

This is coverage that is not usually part of the basic car insurance package, but can easily be added to it.

In a simplified way, it aims to compensate third parties, that is, people who were not inside the vehicle. This will occur if the driver causes any damage with material losses, this way he will not need to take money out of his own pocket.

It is important to highlight that third-party insurance can repair material, bodily and moral losses, but in this text we will focus on material damage.

What does auto insurance property damage compensation cover?

In short, car insurance compensation for material damage aims to compensate for losses that another person has resulting from the insured.

A well-known example is when the insured ends up causing a traffic accident. He is behind the wheel and due to a distraction, he crashes into another car. In this case, when he recognizes guilt, the insurance company pays the losses.

If the car needs to be repaired, a part replaced, painted or another service aimed at repairing material damage, the insurance will take care of it.

Depending on the scope of the policy, it is also possible to use third-party insurance in other situations.

If any property inside the vehicle was compromised by the accident, it is possible to request compensation. If a smartphone breaks, the third party can claim compensation.

Other situations in which it is also possible to reward a third party is by paying amounts not directly related to their car. If the insured lost control of the car and caused damage to a wall, the auto insurance material damage compensation should also be applicable.

It is necessary to pay attention to what is stipulated in the policy and what damages are excluded, as each insurer can guarantee compensation in different cases.

What is the coverage amount against material damage?

There is no rule that determines a fixed amount, everything will depend on what the person hired. She can choose a compensation limit of R$50,000, R$100,000 or even more.

The value of RCF-V coverage must take into account the risks involved and how much and how much the insurer believes is necessary to cover expenses.

A person who travels in places with luxurious cars can get a higher price, as the risk of having to pay for a repair is high.

How is compensation paid?

The compensation is paid by the insurance company to the third party, but there are some rules for this.

When causing damage, the third party must obtain their insurance details from the insurer to contact the company and receive compensation payment. The insurer will contact the insurer to verify the information.

After analysis by the insurance company, if everything is correct, payment is approved. This will be done within 30 days for the third party who was harmed.

This does not mean that the person will necessarily receive the cash value. For example, if his car was damaged, the insurance company may pay for the repair at the repair shop he chooses. If the loss is total, cash will be paid.

For each situation, it is necessary to check how the insurance company proceeds, as there are some rules.

Another point of attention is in relation to the coverage limit. Let's assume that coverage of R$50,000 was contracted, but the damage caused totals R$70,000. In this case, the insurance company pays the R$50,000 and the remaining amount must be paid by the insured.

There is also the possibility that the damages will cost less than the contracted limit. For example, repairing a third party's vehicle costs R$7,000.

In this case, the insurance company pays the amount and R$43,000 remains outstanding if there is a need to pay future compensation.

Auto insurance material damage compensation is paid when the insured person causes losses and does not want to pay out of pocket. However, it is necessary to pay attention to the rules and amounts contracted for this purpose.