Do I need to pay a deductible in the event of a total loss? Find out!

Do you have questions about paying the deductible in the event of a total loss? Read this article to better understand this issue and put an end to this doubt once and for all.

When we are involved in an accident where our vehicle is a total loss, and we have car insurance, the first thing we think about is whether we need to pay the deductibles. insurance to receive compensation.

In this article, you will find out whether PT pays a deductible. In other words, whether there is a need to pay a deductible in the event of a total loss, and you will better understand how to proceed in these cases.

Find out if you need to pay a deductible in the event of a total loss

If your question is whether total loss pays the deductible, rest assured, because the answer is no.

If you have auto insurance and you were in an accident where your vehicle was considered a total loss, you will not have to pay your insurance deductible.

SUSEP – Superintendence of Private Insurance, the body responsible for regulating this service provision, determines in circular nº 269/04, that the charging of a deductible in cases of damage caused by lightning strikes, fires, explosions or that result in total loss is prohibited.

Therefore, if your vehicle has suffered any damage, the repair cost of which is equal to or greater than 75% of the purchase price.

It should be considered a total loss and no insurance company can charge the deductible fee in these situations. If this is done, seek to enforce your rights.

Third-party coverage and 24-hour assistance activation also have no deductible, so these are some more situations that deserve attention.

Understand more if in case of total loss, you pay the deductible!

When is paying the deductible mandatory?

The payment of insurance franchises It is mandatory in situations where insurance is activated to carry out repairs that do not add up to 75% of the vehicle's market value, that is, in cases of partial loss.

So, does PT pay the deductible? No, you will be exempt from this in cases of total loss.

This does not depend on whether you have coverage. full or basic insurance.

In which situations is a total loss considered?

As previously stated, whenever the damage caused to the vehicle is equal to or greater than 75% of its current purchase value, it is considered a total loss.

This happens because insurance companies believe that in these cases it is not worth bearing the costs of fixing the car.

Cases of theft or robbery in which the vehicle is not recovered within a period of one month are also considered a total loss, causing the insurer to pay full compensation to the insured.

It should be noted that major damage is not always considered a total loss.

It can often happen that, in a collision, only one item is damaged, such as the engine, for example, and the replacement parts are very expensive, reaching a 75% margin.

In these cases, even if the vehicle's bodywork is intact, it will be considered a total loss and the insured will be compensated.

Another thing worth mentioning is that, from the moment the vehicle is considered a total loss and compensation is paid to the insured, it becomes the property of the insurer.

Including in cases of theft or robbery where the car is recovered after compensation has been paid.

So if I suffer a total loss, I will receive compensation without having to pay the deductible?

That's right, but it's worth paying attention to some situations:

It's not always a total loss what we think it is

We often come across major damage and think that a total loss has occurred. However, this is not always the case.

As stated above, a total loss is only considered when the repairs total a value equal to or greater than 75% of the current market price of the vehicle. The table normally used in these cases is the FIPE.

It is common for cars to suffer major damage and not be considered a total loss. In these cases, it is necessary to pay the deductible so that repairs can be made.

Full compensation also raises doubts

The value of the full compensation is not equal to the amount paid by the insured at the time of purchase of the vehicle. Rather, it is equal to the current market price of the vehicle.

Therefore, don't be fooled into thinking that your compensation will be the same value as what you paid for your car. After all, vehicles constantly depreciate in value.

And in case of theft, do I pay the insurance deductible?

After informing the insurance company about the vehicle theft, with a police report, the company will have a period of time to compensate the driver. The vehicle may be recovered within this period.

So, let's assume that the car is recovered and has damage. In this case, the accident will no longer be considered theft. Therefore, the insurance company will make repairs to the property and, according to your contract, you will have to pay the deductible.

However, if the asset is not recovered within this period, you will not pay a deductible in case of car theft. The insurance company will have to compensate you according to the FIPE Table and your insurance policy.

This is common among all insurance companies, be it Youse Seguros, Allianz Seguros, Tokio Marine covered claims and others.

Always talk to your broker

Do you have any questions regarding total loss pays deductibleor have you suffered an accident and are not sure how to proceed and what your rights are? Contact your broker, their role is to keep you informed and help you in these situations.

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*Post toupdated on 10/23/2023.