Find out all about APP insurance

Are you thinking about starting to work as an app driver and want to know more about APP insurance – Passenger insurance? Then read this article and understand the subject better.

Anyone who is preparing to start working with their own car as an app driver should already know that having APP insurance – Passenger insurance is a mandatory requirement.

But do you know exactly what this insurance is about, what coverage is offered and how it works?

If your answer is no, don't worry, because in this article we will explain everything about APP insurance or Passenger Insurance.

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Understand better what APP insurance is

APP insurance – Passenger Personal Accident Insurance, is a service that offers coverage in the event of an accident occurring to a passenger on board and they experience a complication that requires medical attention.

This insurance can also offer coverage in more serious cases such as passenger compensation for death or disability.

This insurance is usually purchased as additional coverage along with regular car insurance.

However, due to the growth of the app driver market, and the mandatory nature of APP insurance, some companies now offer the possibility of contracting it separately.

It is also common for people to confuse APP insurance with third party insurance coverage or even DPVAT – Insurance for Damage Caused by Land Motor Vehicles, but it is important to make it clear that they are different services.

Third party insurance coverage does not cover passengers of the insured vehicle, only drivers and passengers of other vehicles, or even pedestrians, who are injured by the insured vehicle.

In other words, for it to be used, the fault of the driver who has the insurance must be proven.

DPVAT is a mandatory social insurance that must be taken out every year and offers assistance in the same situations as third-party coverage, the difference in this case is that there is no need to prove fault.

Furthermore, the compensation amounts of this insurance have a ceiling, that is, if the victim has expenses higher than the limit paid by DPVAT, they will not be fully covered.

See how passenger insurance coverage works

Passenger insurance coverage may be used if you are involved in a traffic accident and this causes physical harm to your passenger present in the vehicle at the time of the accident.

It covers situations such as removal and medical care, medical expenses related to medications, surgical interventions and procedures, and the payment of professionals.

Its coverage also extends to cases where it is necessary to compensate the passenger's family in the event of death, or the passenger himself in cases of disability, whether temporary or permanent.

The compensation provided by APP insurance is based on a calculation table provided by SUSEP and varies according to the damage caused in the accident and the amount chosen by the insured and paid at the time of taking out the insurance.

For example, let's assume that you take out APP insurance worth R$100,000. If you suffer an accident with a passenger on board and they lose the use of their legs, you will be entitled to receive compensation of R$70,000.

This is because this damage, according to the table made available by SUSEP, corresponds to 70% of the capital invested by the insured.

It is worth mentioning that this value used as an example when purchasing coverage is not mandatory.

Some companies work with different maximum and minimum limits.

Another important piece of information is that this APP insurance coverage only applies to these situations, that is, if your passenger suffers damage to material goods, or even a physical problem, but which is simpler, such as a cut or pain resulting from the collision, the insurance will not provide any compensation.

How does the APP insurance calculation table work?

As we said, insurance compensation for passengers varies according to a calculation table created by SUSEP.

This table corresponds to the percentage of the passenger's loss and must be applied to the amount contracted by the insured.

Follow the table below and see which situations are covered by this coverage and their respective loss percentages:

How to purchase APP insurance?

This is a coverage that can be purchased from practically all insurance companies in the country. You just need to request it as additional coverage when quoting your regular insurance.

And as mentioned, if you only want to purchase this coverage, that is also possible.

To do this, you will need to find an insurance company that offers it separately.

When taking out APP insurance, the insured will need to stipulate an indemnity value in the policy, this value will be made available by the insurer if it is necessary to activate the insurance.

The minimum amount to be contracted with insurance companies is usually between R$20,000 and R$50,000, but it is best to contract a higher amount.

Although it is possible to purchase only this coverage, it is best to purchase it together with standard insurance coverage if you do not have insurance.

If you need to purchase this coverage to be able to work with your car, why not take advantage and invest in more security for your vehicle?

Since, this one will be on the street much more than before.

What is the difference between APP insurance and DPVAT?

It is normal for many people to confuse APP insurance with DPVAT – Insurance for Personal Injuries Caused by Motor Vehicles on Land Roads, national insurance is mandatory for all people who own a vehicle.

DPVAT insurance offers compensation for death, disability (permanent or temporary) and hospital expenses for victims of traffic accidents.

However, these compensations have a very low ceiling, which is often not enough to cover all of the victim's expenses.

Furthermore, not everyone who requests this insurance is able to receive compensation.

In other words, DPVAT insurance can be activated in the same way as APP insurance, since they practically offer the same services. However, the coverage limit offered by DPVAT may not be sufficient to cover your passenger's damages, and in this case, you will have to pay the difference yourself if you do not have APP insurance.

Is APP insurance the same as third party insurance?

Another common confusion among drivers regarding APP insurance is with third party insurance, but they are not the same thing.

While APP insurance covers the person who was inside the car at the time of the accident, covering medical and hospital expenses and providing compensation in cases of permanent or temporary disability, or death.

Third party insurance provides coverage for the other driver involved in the accident, as long as the insured driver is at fault.

Third party insurance provides compensation for damage to the vehicle, moral damages and hospital expenses.

In some cases, it may even cover legal expenses if the other driver files a lawsuit against the insured.

But all this for the other driver and not for the passenger in your car.

What are the APP insurance values?

When it comes to purchasing APP insurance for professional drivers, the minimum amount to be purchased is R$50,000.

However, if you are someone who only uses your car for personal use and you want to purchase this additional coverage, you should know that some insurance companies work with a minimum value of R$1,000.

The maximum value in most insurance companies is R$100,000.

The choice of the amount to be contracted must be made by the driver, but it is worth mentioning that this is a single compensation amount, that is, the APP insurance coverage can be activated as many times as necessary, as long as there is an available compensation 'balance'.

For example: you had an accident with a passenger in your vehicle, you activated the insurance and the insurance company paid R$15 thousand in compensation for this passenger.

If you purchased coverage of R$50,000, you will still have an available compensation balance of R$35,000.

Is passenger insurance really necessary?

If you really intend to enter the market as an app driver, taxi driver or even driving a school van, yes, purchasing APP insurance is necessary.

If you only use your vehicle for personal use and think that having passenger insurance is not really necessary, you should know that, according to a survey carried out by Ford, the chances of a traffic accident increasing by 60% when there is only one passenger in the vehicle.

In other words, even if you don’t use your car for commercial purposes, taking out this insurance can be an excellent choice.

Don't forget to do plenty of research before hiring an insurance company. The more quotes you get, the greater your chances of finding prices and services that best suit your profile.

Furthermore, it is important that you check the insurance company's registration status before signing the policy.

This research can be done on the SUSEP website – Superintendence of Private Insurance, through this link.

It is important for you to know whether the company to be hired works correctly, within the sector's legislation.

Who can take out APP insurance?

Although this insurance is mandatory for those who work in passenger transport, it can be purchased by anyone who wishes to protect their passengers.

Whether you are a family man who only uses his vehicle for trips, or a person who often gives rides.

It is important to mention that this is one of the most cost-effective coverages in auto insurance, so it is worth having it even if you are not an app driver.

If you want to know more about the possibilities that APP insurance can offer and prices, look for a broker you trust and ask for more information.

After all, you never know when a major accident will happen.