Insurance companies with coverage for PCD tax exemption

Looking for insurance companies with coverage for PCD tax exemption? In this article, we will show you a current list of all the companies that have or have launched this coverage and explain the subject in more detail.

People with disabilities face many obstacles in their daily lives, but when it comes to buying a brand new car, they can count on some benefits, such as exemption from some taxes, which can cost up to 30% of the vehicle's value.

This exemption refers to taxes such as IPI, IOF and ICMS.

And, it can be obtained to purchase vehicles worth up to R$70 thousand.

In the past, anyone who took out auto insurance for disabled vehicles had the tax exemption amount deducted from the full insurance compensation in the event of a total loss.

Due to this change, we decided to produce an article explaining better how auto insurance for PCD works, in addition to showing insurance companies that work with special coverage for PCD tax exemption.

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How tax exemption works for PCD drivers

Before explaining in more detail how car insurance works in these cases, it is worth explaining in more detail how tax exemption works for purchasing vehicles with a discount for PCD drivers.

This tax exemption possibility can only be applied to PCD drivers and taxi drivers who wish to purchase a zero-kilometer vehicle.

In order to use this benefit, the client must have a more severe physical, visual, mental disability or even autism.

As mentioned, only vehicles worth up to R$70,000 can be purchased with this benefit and there are only three taxes to be deducted:

• IPI – Tax on Industrialized Products, a federal tax levied on all national and imported products;
• IOF – Taxes on Financial Transactions, which is also a federal responsibility;
• ICMS – Tax on the Circulation of Goods and Services, a tax levied by the state and district that is applied to products and services that circulate within the country.

To have access to these discounts, the interested party must meet all necessary requirements and request them when purchasing the vehicle.

It is important to note that these taxes can be requested by both disabled people and taxi drivers only every two years.

As IPI and IOF taxes are a federal responsibility, to find out how to apply, simply access the Receita Federal website, the same applies to taxi drivers.

As for ICMS, as it is a state tax that varies from one region to another, it must be requested from the Finance Department in your region.

How does PCD tax-exempt car insurance coverage work?

When a person with a disability manages to buy a brand new car with exemption from the taxes mentioned above, they get a discount that can reach up to 30% of the value of the car.

With her car in hand, she takes out PCD auto insurance to avoid problems and, if an accident occurs that results in the total loss of the vehicle, whether a collision or theft, she receives compensation for the full value of the vehicle, according to the FIPE table.

Until recently, before this money reached the insured's hands, a part of the compensation was set aside to pay all taxes that were not paid when purchasing the vehicle.

In other words, the insured received only 70% of the value of the vehicle.

This no longer happens today, according to some changes in the sector, the insurer is now responsible for paying these taxes deducted at the time of purchase of the vehicle, making it possible for the insured to receive the full amount in accordance with the FIPE table.

However, for this to happen, it is essential that at the time of contracting the policyholder informs the insurer of the PCD tax exemption condition and whether there is any adaptation equipment installed.

In other words, these insurance companies offer coverage of 100% of the vehicle's value plus a clause that guarantees the collection and payment of taxes that were exempted when purchasing the vehicle.

How does coverage for adapted equipment for PCD insurance work?

When taking out car insurance for people with disabilities, it is important to have coverage for adapted equipment.

In some cases, even if they don't exist, it needs to exist.

This protection is very worthwhile, because if a partial loss occurs and the existing equipment is damaged, if there is no such protection the insurance will not cover the repair of this equipment, which is often very expensive.

Some insurance policies offer this coverage with a deductible, others do not, so it is important to be aware of this issue, which must be very clear in the policy.

If this deductible exists and the vehicle is a total loss, its value may be deducted from the compensation.

Insurance companies with coverage for PCD tax exemption

Currently, there are five insurance companies that work with this type of special coverage for PCD exemption, see more about them and the coverage offered, below:

• Safe Harbor;
• Itau Auto RE;
• Tokyo Marine;
• Liberty Insurance;
• Allianz.

The insurance companies Porto Seguro, Itaú Auto and Tokio Marine work with the same conditions.

These companies provide information in one of their clauses stating that, in the event of a total loss, the collection of taxes such as IPI and ICMS, exempt at the time of purchase of the vehicle, will be waived.

If the government charges these taxes, the insured simply needs to collect the payment slips from the responsible bodies and deliver them to the insurance company so that the taxes can be collected.

However, it is essential that this benefit related to tax exemption is informed to the insurance company at the time of contracting the coverage.

See below an example that applies to the three insurance companies mentioned:

Joaquim bought a car for R$70,000 with the ICMS and IPI exemption for PCD, which gave him a 23% discount on the total value of the vehicle (discount worth R$16,100), that is, Joaquim bought his new car for R$53,900.

When taking out car insurance, he informed the PCD exemption and acquired 100% coverage of the FIPE table.

Therefore, if a total loss occurs with Joaquim's car, he will receive the full purchase price of the vehicle, and the insurance company will be responsible for covering the amount corresponding to the tax exemption.

In other words, the insurance company will pay R$16,100 to the government and Joaquim will receive compensation of R$70,000.

In the case of Liberty insurance, the only difference in relation to taking out insurance with PCD tax exemption coverage is that, at the time of taking out the policy, it must be stated that the policy is for car insurance with “Adaptation for physically disabled people/PNEs”.

Even if the vehicle does not have any adaptations, this nomenclature must be included in both the insurance proposal and the policy.

This is necessary because the company also uses this nomenclature for vehicles that have PCD exemption, even if they are not adapted.

In the case of Allianz, the difference in this service is due to the fact that it is not necessary to mention at the time of taking out the insurance that it is a vehicle with PCD tax exemption.

Precisely because this information is not necessary, the insured will not find any clause in the policy that specifies this coverage.

However, coverage regarding compensation and payment of taxes is offered in the same way as the other insurance companies mentioned in this article.

It is important to remember that, in recent times, all of these companies have significantly changed their contractual conditions regarding this coverage.

Therefore, it is possible that they will be changed more often over time.

In other words, you need to be aware of your insurance company's rules, together with your insurance broker.

If you need any further help or guidance on this subject, please do not hesitate to contact us.

*This text is editorial content and does not guarantee the commercialization of this product on this website.