International car insurance | Auto insurance coverage

Are you planning a trip abroad, but don't really know how travel car insurance works? So, follow this article and ask all your questions about this subject.

There are many types of insurance that can be useful in different situations.

Life, home and travel insurance are some examples.

If you are planning to take a trip abroad, it is a good idea to have travel insurance coverage.

It will serve to protect you at different times during your trip.

However, if your trip is by car, in addition to relying on it, it is essential that you have international car insurance for travel.

In addition to being mandatory, international car insurance can be essential during your trip, in case you have any type of problem with the vehicle.

Follow this article and better understand how this insurance works, what its advantages are and why it is mandatory.

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What is international car insurance?

International car insurance is mandatory insurance coverage for all vehicles that intend to travel across countries on the continent.

It has practically the same function as the DPVAT here in Brazil, that is, its objective is to compensate victims of accidents caused by the driver.

However, DPVAT is not valid outside Brazil, and not all insurers offer this type of coverage in their most complete packages.

Most of them only work with additional international car insurance coverage, which can be purchased separately.

When we talk about international travel to the countries that make up Mercosur, Argentina, Uruguay and Paraguay, mandatory international car insurance is known as Carta Verde.

But, despite having a specific name, it has the same coverage as other insurance of this type.

This type of insurance covers material and personal damage caused to third parties who are not in the insured's vehicle.

The minimum compensation established for personal injuries is US$40,000 per person, up to a limit of US$200,000, while for property damage it is US$20,000, limited to US$40,000.

SOAT (Ecuador, Peru and Colombia)

For those going to other countries, such as Ecuador, Colombia and Peru, for example, they must take out Mandatory Traffic Accident Insurance (SOAT), which is exclusive to these countries.

SOAT, in addition to protecting against problems that occur with the insured, also protects against damage to third parties, acting in cases of physical damage and also in cases of death, whether of the driver himself, as well as passengers and pedestrians.

In this way, everyone involved in a possible accident, which occurs within the limits of these countries, is covered by SOAT.

This coverage is quite broad in the case of physical damage, as it includes the payment of medical expenses, ambulance costs (which in some countries is paid separately by the patient), and may even pay some compensation.

However, despite being quite complete against damage to people, SOAT does not cover any material damage.

In other words, any problem the car has will leave the driver helpless.

SOAPEX (Chile)

As you can see, each country in Latin America has a type of mandatory insurance, which requires a lot of attention from the driver before starting the trip.

The same thing happens in Chile.

Mandatory Insurance for Foreign-Registered Vehicles (SOAPEX) is another type of insurance required within Latin America, in this case, it is mandatory insurance for anyone who wants to travel through Chile with a vehicle that has license plates from another country.

It is very similar to SOAT, however, it has slightly less coverage.

In the case of SOAPEX, cases of death, medical expenses of those involved in the accident, and permanent disability (total or partial) are covered.

These cases may receive insurance compensation.

Other countries

Still within Latin America, we have Bolivia, which can easily be visited by car by Brazilians who wish to make this type of trip.

Bolivia, however, does not require any type of insurance to drive there.

In the case of other countries, especially outside Latin America, it is important to consult the legislation and regulations of each location before starting the trip, so as not to be caught by surprise.

How international car insurance works

Anyone who wants to travel to other countries without having to rely on public transport or taxis can choose to go with their own car or rent one at their destination.

However, for a person to be able to drive in other countries, in some cases it is necessary that, in addition to having a specific permit, called PID – International Driving Permit, they must also have international car insurance.

International car insurance can be taken out together with common insurance coverage, or separately.

There are many insurance companies that offer this service, so don't forget to carefully research all the possibilities.

The duration of this insurance can be defined according to the period of the trip.

In other words, if you intend to spend a month in the country, your policy may be valid for 30 days.

But if the plan is only for 15 days, you can only take out the insurance for two weeks.

It is worth mentioning that the maximum contract period for this insurance is one year.

Therefore, if your trip lasts longer than 12 months, you will need to renew your international car insurance.

Who is international car insurance suitable for?

International car insurance, or Green Card, as it is known when we talk about Mercosur countries, is recommended for people who live in cities or states that border other countries and intend to visit these places frequently.

In addition to these people, any driver who intends to travel to another country and wishes to do so with their own car or is planning to use a rented car as a means of transport must have this insurance.

Advantages of international car insurance

For those who are traveling and want to avoid problems, having international car insurance can provide several benefits, such as:

• Assistance in the event of an accident;
• Financial peace of mind;
• Coverage of damages to third parties, both material and physical;
• Coverage for various situations such as theft and collisions;
• More peace of mind when traveling, because with insurance, both the driver and passengers, as well as the car, are safe.

How to take out international car insurance

Both international car insurance and PID must be arranged before the trip takes place.

This is because the international driving permit can take up to 30 days to be ready and the insurance needs to be quoted from different insurers so that the best coverage at the fairest price is found.

It is interesting that you count on the help of a broker to make this quote, as this professional will help you define all the most important details and coverage for your case.

In addition to helping with quotations.

Some insurance companies work with pre-stipulated values ​​for each destination and it is worth mentioning that changes in price can always occur depending on the vehicle and the driver's profile.

However, most insurance companies are open to negotiation and, depending on the destination and period of travel, you may be able to get very affordable prices.

For those who already have insurance, it is possible to request a Perimeter Extension, together with your broker or insurer.

In this case, the Perimeter Extension normally has the same coverage as traditional insurance.

In other words, cases of robbery, theft, collision and fire are normally covered by this extension.

If traditional coverage does not cover many events, it can be negotiated to hire new coverage for the extension, such as protection for glass and damage to third parties, for example.

It is also worth checking with your insurer about the extent of assistance offered by some companies.

In these cases, policyholders can count on the assistance service (which is normally already offered in traditional insurance), at no additional charge.

It is normally offered in Mercosur countries and Chile.

Some examples of services that can be used in this package are: transporting the vehicle to a local workshop for repairs and accommodation and transportation of insured people while the vehicle cannot be used, in addition to changing tires and assistance in case of dry bread.

This service can also be very useful for the traveler, after all, no one likes to be at the mercy of an unknown country.

Therefore, ask your broker about this free service and be sure to purchase it.

However, you need to be careful when hiring a Perimeter Extension, as it has a start and end period, and after it ends, the insurance will be valid again normally (only in Brazilian territory).

These dates must be clearly expressed in the policy, and within the travel schedule, so that the insurance does not lose effect before the trip.

If this happens, it could cause problems for the driver.

Therefore, having a trustworthy broker is important.

Insurance precautions while traveling

The policy is valid as proof of insurance contracting and must be kept with the insured person throughout the trip.

Therefore, it is also important to keep the insurance company's contact details on hand to contact the company in case of any unforeseen circumstances.

Therefore, a tip is to write down the insurance company's number on a piece of paper and always keep it in your car or in your wallet, or store it on your cell phone.

Contacting the insurance company is essential, as they are the ones who will be able to provide assistance in the event of an accident.

Now that you know that, in addition to being mandatory, international car insurance can be very advantageous for you on a car trip, don't waste any more time, look for a broker as soon as possible and ask for help in finding the best coverage for your trip.