Learn more about full compensation

Have you purchased or are about to purchase auto insurance and want to know more about how full compensation works? Then read this article and find out more about the subject.

Anyone who currently owns a vehicle knows that having car insurance is essential.

After all, we are subject to problems, accidents and robberies or thefts at any time and, to avoid greater losses, the first step is to take out insurance.

This type of service offers protection for a range of situations and, precisely for this reason, has different forms of compensation.

However, in a more summarized way, it is possible to say that there are two types of compensation available in auto insurance.

The first is known as partial compensation, it is aimed at carrying out repairs and damages caused by situations covered by insurance.

The second is called full auto insurance compensation, and that is what we will talk about in more detail in this article, so stay tuned.

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How full auto insurance compensation works

According to SUSEP – Superintendence of Private Insurance, “Full Compensation for the vehicle is characterized when the losses resulting from the same accident reach or exceed the value determined by applying a certain percentage to the contracted value.”

In this case, it is necessary to check what the basis is being considered and how much it would cost to repair the vehicle.

If the cost of repair exceeds 75% of the total, the insurer must pay full compensation, without having to make any repairs.

This is because the price ends up being very high and it is not worth fixing the car.

To be able to receive full compensation from auto insurance, you must have suffered an accident and it must be covered by insurance.

These events usually include theft, robbery or collision. However, remember that payment will only be made if you have coverage for the type of loss suffered.

How do I receive full compensation from my car insurance?

Anyone who wants to receive full compensation from their auto insurance must inform the insurance company about what happened.

Each insurance company has a communication channel, but in general this is done by telephone.

During this contact, information is provided on how to proceed to move forward with the process.

The car will need to be assessed by the insurance company to verify the damage caused and whether it is actually total or partial compensation in the event of a collision.

When it comes to theft or robbery, it is not possible to carry out the analysis because the car no longer exists.

From that moment on, the owner will be asked to forward the necessary documents so that this payment can be made.

It is then up to the insured to anticipate and provide the documents, such as the police report, personal documents of the driver and the vehicle.

When it comes to collisions, it is also recommended, if possible, to have witness data and photos of the moment of the crash.

Once all requested documents have been sent, the compensation payment process will begin, and from then on the insured will have 30 days to receive the amount.

If there is any missing document, you will need to provide it and, only after it has been delivered to the insurance company, will this period begin to count.

How is the value of full compensation for auto insurance defined?

The value of full auto insurance compensation can be defined in two ways.

The first, and most common, consists of defining the value according to the market price of the vehicle model and year of manufacture.

In this case, the price of full compensation follows the values ​​stipulated by the FIPE Table, a table created by the Fundação Instituto de Pesquisas Econômicas since 1973 that lists all prices practiced in the market and promotes a more accurate average.

The other way to define the value of the full auto insurance compensation is through a pre-determined value.

In this case, it is necessary to stipulate a value that the insured and insurer agree on.

In this case, the pre-determined value must be stipulated in the policy, when taking out car insurance.

How does the payment of full compensation work in the event of theft or robbery?

As mentioned previously, if your vehicle is stolen or robbed, the first step is to file a police report.

Once this is done, you will need to file a claim with your insurance company and submit all the requested documents.

From that moment on, the insurer will have 30 days to find your vehicle.

If he is not found, you will receive full compensation as agreed in the contract.

However, if he is found, the full compensation process is cancelled.

If it is found undamaged there will be nothing to worry about.

However, if it breaks down and needs repairs, you will need to pay the deductible.

How is full compensation paid?

Payment of the amount normally occurs into the insured's current account, as stipulated in the policy.

When this payment is made, the contract with the insurer ends, as there is no longer any asset to be protected.

It is important to note that if there are outstanding insurance installments, these can be deducted from the compensation amount.

This also applies to the case of full compensation for cars purchased and insured under leasing.

In this case, as the vehicle is registered in the name of the company responsible for the leasing, it will receive full compensation, pay off the outstanding installments of the financing and, if there is any remaining amount, forward the difference to the insured.

The procedure for receiving full compensation from auto insurance is not very bureaucratic, but it is necessary to provide all the documents and deliver them to the insurance company so that it can be completed.

Important information about full compensation in auto insurance

It is important that you keep in mind some important information about how full compensation works in auto insurance. These are:

• There is no deductible payment for full compensation, regardless of the reason that caused it;
• The insurer has exactly 30 days to make the payment, but this period only starts to count after the insured person submits all the requested documents;
• If it is necessary to provide another document to the insurer, the 30-day counting period is suspended and only becomes valid again after this new document is delivered;
• Auto insurance is automatically canceled once the full claim is paid. However, if the policyholder purchases a new vehicle and insures it within the 30-day period, they will be able to keep their bonus class intact.

If you still have any questions about full auto insurance compensation, it is worth contacting an insurance broker you trust and asking for more information.

Another option is to access our FAQ – Questions and Answers or leave your comment.