How does the insurance cancellation deadline table work?

Are you thinking about stopping your car insurance and want to better understand how the short-term table for canceling car insurance works? So follow this article and find out more.

When you have car insurance and want to cancel it, you must follow some rules so that part of the amount is paid back or only the amount corresponding to the period in which you used the service is charged.

It is on these occasions that the use of the short-term table comes in.

There are two situations in which the short-term table is used: when the insured decides to cancel the insurance or to calculate proportional coverage when the insurance is canceled due to default.

In this article we will talk more about this tool and show how the short-term table works when canceling car insurance, according to the rules of SUSEP.

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See how the short-term table works

The short-term table exists to identify the amount paid for insurance according to the days of coverage covered.

In other words, it shows what percentage of the total price of the policy was used in one of the day periods.

It is generally used over a period of one year, the most common term for car insurance policies, and it is important that it is always present in the policy, both in the general conditions of your insurance and in Susep.

So, follow an example of using the table below and find out calculate short term and better understand how it works:

But, let's assume that you took out auto insurance for your car whose total policy value was R$2,600.

So, your contract is for 12 months of coverage, but in the fifth month you had a problem and decided to cancel the insurance, which was paid in full.

Therefore, in this case you used 150 days of the 365 contracted, according to the short-term table, this period used is equivalent to 60% of the value of the premium already paid.

Then, you will soon be entitled to a refund of 40% of the insurance value, which will be a total of R$1,040.

But, if you have any doubts about the amount to be refunded, see the Allianz rules, Youse, Porto Seguro refund and others.

Cancellation at the request of the insured

To better understand how the short-term table works in the case of a cancellation requested by the insured, follow another example to understand calculate insurance.

Let's assume that you decide to cancel the insurance after 60 days of use because you thought that another insurance company offered better conditions and that the premium value was R$2,000.00 and it was paid in 5 installments of R$400.00 reais each installment. .

However, in this case, two installments of R$400.00 had already been paid, totaling R$800.00.

Therefore, as it was used for 60 days until the cancellation request, and looking at the table, the percentage of the premium to be paid should be 30%.

So, 30% of R$2,000.00 corresponds to R$600.00, which indicates that an excess amount was paid. Then, the insured would be entitled to receive R$200.00 back.

Cancellation due to default

Thus, the same rule applies in the case of default. So, let's consider the same values ​​for insurance as those in the case above.

However, the insured only paid the 1st installment and then stopped paying. After all, this means that he paid R$400.00 which corresponds to 20% of the premium or 30 days of coverage.

If your insurance is canceled in a period of days that is not so exact, or is not found in the table.

So, the correct thing to do is to consider the closest value to know how many days you would be entitled to coverage.

If the insurance company cancels my insurance due to default, will it be able to deny my name on SPC/Serasa?

No, the insured's name will not go to SPC/Serasa due to non-payment of car insurance installments. After all, the insurance was not used, that is, the customer is paying for something that they may need to use and if you didn't activate it, you didn't use it, do you agree?

However, the ideal is not to stop paying for vehicle insurance, as if the vehicle suffers an accident, the insurer may deny compensation due to late payment, considering the hypothesis that the protection has not yet been cancelled.

Therefore, you may be wondering, how is the insurance company not going to compensate if the contract is still active? Understand that if you are, for example, 2 months late, you run the risk of not receiving insurance compensation. However, the company probably has its contract 'active' for payment to occur.

Therefore, do not let your insurance policy payment be delayed. Negotiate with the insurance company to keep your protection up to date. After all, there's nothing like being able to park your vehicle and drive more smoothly, right?

So, now that you know a little better how the short-term table works when canceling car insurance. But, if you have any doubts about the deadline calculation, consumer right to cancel insurance, about fleet insurance or others, speak to your insurance broker.

It will be easier to understand your rights if you decide to cancel your insurance policy.

Consultation carried out in: May/19

*Published in 2018 and updated on 06/08/2022.