Check full compensation paid deductible in auto insurance

Those who have car insurance may still have several questions about the product they have, one of which is regarding the payment of the deductible. But do you know what this is?

What is franchising?

The deductible is an amount established in the policy that allows the insured to contribute an amount in the event of a vehicle accident. If repairs are required, the driver must pay the deductible, with a pre-established amount so that the repairs can be made by the insurer.

This is a way of “splitting” the repair costs, but following some rules established by SUSEP and also detailed in the policy.

What types of compensation are available?

There are basically two types of compensation that insurance companies work with, one when there is a partial loss and another when there is a total loss.

In the case of partial loss, this means that the vehicle has suffered some damage and that the loss does not exceed 75% of the total value of the vehicle.

In these cases, these are usually situations that can be resolved in a workshop, such as a broken taillight, dents in the bodywork, among others.

A total loss is when the car suffers more extensive damage, meaning that a large part of it has been compromised.

A total loss is recognized when the cost of repairing the vehicle exceeds 75% of its price. Thus, if the vehicle costs R$30,000 and the repair cost is R$24,000, it is considered a total loss.

But finally, in the case of full compensation, do I need to pay the deductible?

Full compensation may occur due to several factors such as a collision that caused major damage, explosions, robbery and theft.

In these cases, it is not worth repairing the car due to the high costs that will be generated, which is why insurance companies choose to pay full compensation.

As the deductible is a type of “contribution” to pay for the repair, it no longer makes sense when a total loss occurs.

Therefore, since there is nothing to be repaired, there will also be no deductible charge. The insurer will cover all costs and pay the full compensation as provided for in the policy.

However, it is important to emphasize that full compensation is only paid under certain conditions, such as the insurance being up to date and the driver not driving under the influence.

If these conditions are not met, the insurer will not provide a refund even with the payment of the deductible.