Can the insurance company deduct fines from the full compensation?

Do you know when the total compensation is paid? Do you know if the insurance company can deduct fines from the total compensation? Read the text and find out everything you need to know.

The insurance company can, in fact, deduct fines from the full insurance compensation. This is because the vehicle must be free of outstanding debts when receiving all the amounts.

To understand these rules, you must first find out what this type of compensation is. Full compensation is the amount paid by the insurer to the insured whenever a total loss of the vehicle occurs.

A total loss occurs when, after an accident, the vehicle has a high cost of repair. The cost is characterized as high when it corresponds to more than 75% of the vehicle's value.

Full compensation is also paid if the car is stolen or misappropriated and not recovered by the police.

In both situations, the amounts paid to the consumer are intended to enable the purchase of a new vehicle. After all, the insured car will not be in a condition to use it.

When it comes time to pay the amounts, the insurance company transfers the “lost” vehicle to its name. This means it becomes the owner of the asset and can compensate the user for any losses.

To transfer ownership, all vehicle debts must be up to date.

Taxes, fines, DPVAT insurance or any other outstanding debt. This is why the insurance company can deduct fines from the full compensation.

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Does the insurance company always deduct fines from the full compensation?

Despite the possibility of deducting amounts from compensation, the insurer does not take this action without notifying the client.

This is because there is another possibility: that the driver himself pays the debts. Thus, the company gives the user a deadline to pay off the debt.

After the debts are settled, the company will transfer the vehicle to its ownership. Only then will it pay the full compensation to the insured.

In any case, it is much more common for there to be a discount on compensation, at the consumer's own choice.

After all, the process is usually simpler for the user, as the insurance company will be responsible for it.

In any case, the insurer cannot charge for settling debts with the responsible bodies.

The compensation discounts must be only for the exact value of the debts that were outstanding.

Once the necessary amounts have been deducted, the consumer will receive the remainder of what was stipulated in the contract.

Normally, the amounts correspond to the value of the car in the FIPE Table. The user can do whatever they want with the amounts, without being obliged to purchase a new vehicle.

How long does it take for the insurance company to pay the compensation?

After registering the claim and submitting the requested documents, the insurer has up to 30 days to release full compensation to the consumer.

This period may be interrupted if documents are missing, and will continue to be counted upon delivery of the requested data.

As already mentioned, full compensation is still paid when the car is stolen or robbed. The deadline is also 30 days in these cases.

However, if the vehicle is recovered while the compensation process is still ongoing, the insurer will stop it. The company will then assess the vehicle.

If there is only a partial loss, the car will be repaired. A partial loss occurs when the insurance repairs cost less than 75% of the car's value.

However, if even after the assessment, the insurer verifies a total loss, the full compensation process will be resumed from where it was interrupted.

Another important point is that there is no deductible charge in the event of full compensation. The deductible is an amount paid by the user in partial losses.

With it, the insurer and drivers share the cost of repairs. The deductible can have a fixed value or a percentage, and is defined in the insurance contract.

Furthermore, once the full compensation has been paid, the insurance policy is cancelled. Therefore, if the user buys a new car and wants to protect it, he/she will have to take out new insurance.

What happens to bonus classes?

Once the full compensation has been paid, the user loses a bonus class. Bonuses are points that the consumer accumulates each year that they renew the insurance without registering a claim.

Each point accumulated gives the driver a percentage discount when purchasing car insurance.

The user can keep some bonus classes if they buy a car and purchase protection within 6 months after the end of the policy. After 60 days, however, the points gradually decrease.

For example: with the money from the full compensation, you buy a new car. You had 5 bonus classes, and you lost 1 when the policy ended.

If the contract is made within 60 days, you will have 4 points. 120 days after the compensation, you will lose 1 more point, leaving you with 3.

If you sign up between 4 and 6 months after your previous policy, you will have lost 2 points in total. You will then have 2 bonus classes remaining.

Finally, if new insurance is obtained after 6 months, you will be welcomed as a new user of the service. Therefore, you will not receive any bonus discounts.

Now you know everything you need to know about fine discounts on full insurance compensation.

It is important to know all the information before signing the protection contract. This way, you will be sure of all your rights and obligations on the subject.