Is there a limit to how much car insurance can be used during the year?

It is normal for some people to have questions about the validity period and the limit for using auto insurance during the year. If you also have questions about this, follow along.

Many people, when they are researching car insurance to purchase, or even if they already have one, find themselves with doubts about the exact duration of the policy and the limit for using car insurance during the year. If this is your case, follow more information on the subject.

Limit for using total loss coverage

When it comes to the limit of use of auto insurance coverage, the first item worth mentioning is coverage in cases of total loss, whether caused by a collision or theft without recovery of the vehicle. In these cases, the limit for activating auto insurance is only once per year.

When this happens, the insurer pays the compensation as agreed in the policy. After this payment, the service provision contract is settled and cancelled, forcing the customer to take out a new insurance policy.

As in this case, the policy will be cancelled immediately after the compensation is paid, there is no way to activate this coverage more than once.

Limit for using partial loss coverage

In the event of partial loss coverage being activated, such as repairs, the insurance can be activated as many times as necessary, there is no limit to its use. In other words, every time there is a collision that causes partial loss, or any other problem that requires repairs. The customer can activate the insurance without any worries, without fear of rejection.

Coverage for damage to third parties

It is also important to explain how insurance works when it is activated in these cases. In general, insurance companies work with a system called “automatic reinstatement of funds”which works as follows.

Assuming that the client has third-party coverage of R$100,000, and in a collision, due to the insured's fault, the other person suffers a total loss of R$60,000. When triggered, the insurance must pay the third party's compensation, and since it has not reached the full amount of the contracted compensation, the insured's third-party coverage is reinstated, returning to the total amount of R$100,000.

Now, if the same insured suffers another collision and has to pay compensation to another person in the amount of, for example, R$50,000. The insurance will again pay the compensation, however, the sum of the two compensations will be R$110,000, exceeding the maximum amount of coverage contracted. In this case, the coverage is not reinstated but rather canceled.

Regarding 24-hour assistance services, what is the activation limit?

The limit for activating 24-hour coverage varies from company to company. 24-hour assistance offers a variety of services, such as towing, locksmiths, roadside assistance and more. However, the limit for using these services varies greatly from insurer to insurer, in accordance with what is established by Susep.

While some companies only allow you to use the service three times during the entire term of the policy, others allow unlimited use of these services. Therefore, it is worth researching this issue before hiring an insurance company.

Usage limit for glass covering

This is another coverage that varies greatly depending on each company's policy. Some insurers only allow use twice during the entire term of the insurance. Others limit use according to the value of the repairs carried out. In other words, a maximum value for glass coverage is stipulated when the policy is taken out, and when this is reached, regardless of the number of claims made, the coverage ceases to exist.

Therefore, this is also a detail that is worth observing at the time of hiring, so it will be possible to choose a company that really meets your needs with a limit for using auto insurance, avoiding unpleasant surprises in the future.

Stay tuned

It is worth remembering that, although it is possible to contact the insurance company as many times as necessary in the event of a partial loss, the more times you contact the insurance company, the lower your chances of getting the policy renewed when the time comes.