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 your car insurance works? Then follow this article and find out more.

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

It is in 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 the 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 auto insurance, according to the rule 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 each of the periods of days.

It is generally used for 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 how to use the table below and find out calculate short term and understand better how it works:

But, let's suppose that you took out auto insurance for your car, the total value of the policy being 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 for 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.

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

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

Cancellation at the request of the insured

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

Let's suppose 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 amount was R$2,000.00 and it was paid in 5 installments of R$400.00 each.

But, 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%.

Therefore, 30% of R$2,000.00 corresponds to R$600.00, which indicates that an excess amount was paid. Therefore, 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 in the case above.

However, the insured paid only the first 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 cancelled within a period of days that is not so exact, or not found in the table.

Therefore, 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, can it blacklist my name in the SPC/Serasa?

No, the insured's name will not be registered with the 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 did not activate it, you did not use it, do you agree?

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

So, you may be wondering, how come the insurance company won't pay you if you still have an active contract? Understand that if you are, for example, 2 months late, you do run the risk of not receiving the insurance compensation. However, the company probably has your contract 'active' so that payment can be made.

Therefore, don't let your insurance policy payment be late. Negotiate with your insurance company to keep your coverage up to date. After all, there's nothing like being able to park your vehicle and drive with more peace of mind, right?

So, now that you know a little better how the short-term table works when canceling auto insurance. But, if you have any questions about the term calculation, consumer right to cancel insurance, about fleet insurance or others, talk 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.