How does moral damage coverage in auto insurance work?

Want to know how auto insurance moral damages coverage works? Find out more about this subject in this article.

Often, when taking out insurance or renewing it, we find ourselves in doubt regarding the coverage offered.

It can be difficult to know exactly what they are for, when they can be used and what their duties are. This is the case, for example, with coverage for moral damages, which confuses many people.

We have prepared this article to clarify this subject further and show you exactly where moral damages coverage fits in. We also talk about how it works and how it can be useful to you. Read on!

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What is coverage for moral damages?

Typically, coverage for moral damages is part of the category of damages to third parties, and is accompanied by coverage for material and bodily damages.

Here, it is common for it to appear as RCF-V coverage (Optional Vehicle Civil Liability).

However, it is important for consumers to be aware that this is not a general rule. In some companies, coverage for moral damages is independent and must be contracted individually when signing the policy.

Third party coverage involves paying an amount to cover damages caused to other people, whether personal or material.

This includes paying for medical expenses and repairs to the other car involved in the collision, for example. The maximum amount for compensation is stipulated by the consumer at the time of taking out the insurance.

In any case, there are some situations in which coverage for moral damages under auto insurance cannot be requested.

When the third party involved has some degree of kinship with the insured, for example, the protection is not valid. The same applies when the third party is financially dependent on the policyholder.

Employees of the insured who were working at the time of the accident cannot be compensated either, as can partners or co-workers.

If third party assets are in the possession of the insured at the time of the occurrence, they will also not be entitled to any amounts.

In some of these situations, Personal Accident Insurance for Passengers (APP insurance) and/or RCF-V can help. If in doubt, talk to your broker and check the possibilities of compensation.

How does moral damage coverage in auto insurance work?

Moral damages coverage exists to cover possible compensation requested, if it is proven that the insured in some way insulted the third party during the accident.

Furthermore, it can be used if the third party involved in the accident becomes disabled, suffers some type of deformity or loss of movement or limbs.

Offenses to freedom, respect for the dead, credit, well-being and the lives of those involved in the incident are also considered moral damages.

This coverage also includes payment of lawyers and legal costs related to the claim. Moral damages require a court order to be paid.

It is important that the consumer is aware that, when purchasing this coverage, he will only be entitled to reimbursement up to the limit determined in the contract.

This means that if the compensation to be paid exceeds this amount, the insured will have to cover the difference out of their own pocket. The average value of the contracts is usually R$50,000.

Is it worth taking out moral damages coverage under auto insurance?

The answer to this question is: it depends. It depends on where you live and the chances you have of being involved in an accident or collision with others. If you think the chances are high, then it may be worth protecting yourself.

The best thing to do, in any case, is to do your research before hiring the service. Not only in relation to the cost of the coverage, but also in relation to the ease of dealing with the insurance company.

DPVAT and coverage for moral damages in auto insurance

Many people also wonder whether DPVAT insurance would not be sufficient. DPVAT is the Insurance for Personal Injuries Caused by Motor Vehicles on Land Roads, and it works as a mandatory “tax”.

It must be paid together with the vehicle's annual IPVA (Motor Vehicle Property Tax).

DPVAT can be used after traffic accidents. It is paid in cases of death and permanent disability, as well as to reimburse victims' medical and hospital expenses.

In other words, its use is very similar to that of third party insurance compensation.

However, DPVAT amounts are considered low. In this situation, the victim could request greater compensation, including through legal means and for moral damages.

If you do not have insurance, you will need to pay the difference out of your own pocket. If you do have insurance, your insurance company will be responsible for covering the difference.

It is also important to note that DPVAT is paid to all accident victims, regardless of who is at fault for the incident.

On the other hand, third-party insurance is only paid out when the insured is at fault for the loss. DPVAT also does not cover material losses, while insurance does.

When taking out insurance for your vehicle, find out about the coverage for moral damages in auto insurance with a broker you trust.

Evaluate the advantages of having this protection in your case, and consider other types of third-party coverage (such as APP insurance). This will help you make a better decision on the matter.