Car repairs are cheaper than the deductible

Have you ever wondered what to do when car repairs are cheaper than the deductible? This type of situation is more common than you might think. Read on to find out everything you need to know!

Your car crashed and, when you got a quote, you realized that the repair of the vehicle will be cheaper than the insurance deductible. What should you do? Will the insurance company pay for the repair? Is it really worth taking the company to court?

Before we answer these questions, you need to know one thing: the user is not obliged to contact the insurance company every time an accident occurs. If the user considers the company's help unnecessary, the individual can solve the problem on their own.

However, the insurance company needs to be informed. Damages can alter the car and increase your chances of a claim. This is even if the damage is repaired.

The risk of a vehicle being damaged directly influences the cost of insurance and the coverage provided by the insurer. If the company is not notified, it may allege fraud on the part of the consumer. Therefore, in the event of a new damage, there is a chance that the insurance company will deny compensation.

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What is the insurance deductible?

The deductible is the amount that the consumer must pay to the repair shop to have their car repaired. It is through this that the user and the insurance company share the costs after an accident. For example: your car is involved in an accident, and the repairs will cost R$5,000. Since your insurance deductible is R$1,000, you will pay R$1,000 to the repair shop. The remaining R$4,000 will be paid by the insurance company.

The user only needs to pay the deductible in the event of partial loss of the vehicle. Partial loss occurs when the costs of repairing the vehicle are less than 75% of the market value of the car.

Total loss does not require payment of the deductible. This occurs when the repairs to the car would cost more than 75% of its market value. In this situation, the user receives full compensation to purchase a new vehicle.

Full compensation is also paid when the car is stolen or misappropriated and not recovered by the police. The rules are set out by the Superintendence of Private Insurance (Susep).

Another situation in which the deductible is not paid is when third-party coverage is activated. In other words, coverage for repairs to another person's vehicle, involved in an accident with the user.

And when the repair is cheaper than the deductible?

When car repairs are cheaper than the deductible, the deductible is also not charged to the user. At the same time, however, the insurance company does not cover the repairs.

The logic is simple. Going back to our previous example, your insurance deductible is R$1,000. However, when you estimate the repairs, they will only cost R$800.

So, you will have to assume these expenses and pay them directly to the garage. After all, why pay R$1,000 in deductibles if the vehicle repairs are cheaper?

It is important to note, however, that this type of situation only occurs when the deductible has a fixed value. There are contracts that establish, instead of this fixed cost, a percentage of the cost of the repair. In this scenario, the insurer and the insured will always share the costs of repairing the car.

It is worth paying attention to your insurance contract. The rules and deductible costs vary greatly from one insurer to another. Make sure that your company will cover the costs when necessary and, if you do not agree with the terms, negotiate them before signing the contract.

You can also look for another insurance provider, as there are many available on the market. Research can even help you save on your monthly insurance premiums.