Partial compensation from auto insurance

When taking out car insurance, the customer can choose which coverages they want to include and these will give them the partial compensation of auto insurance or full compensation. In this case, the type of amount to be paid to the insured will vary according to the damage caused to the vehicle.

What is partial compensation?

Partial compensation is that which aims to cover damage to the vehicle that does not lead to a total loss, that is, when there is the possibility of making a repair without the value being greater than a percentage of the total value of the vehicle.

For this type of compensation to occur, the value of the repair must exceed the deductible, which is the amount that the insured must pay in the event of a claim, and must also be less than 75% of the total value of the vehicle.

When an accident occurs, you should notify the insurance company as soon as possible so that they can provide you with all the instructions on how to proceed. In general, you will need to take your car to a garage, which may or may not be recommended by the insurance company, in order to obtain a quote. You will also need to provide information to the insurance company and send some documents, such as a police report, a notice of loss, and any others that are requested.

In this process, your car will be repaired at the location indicated and you pay the deductible, that is, you contribute with a value for the repair to be carried out, which must be established in the policy. The insurer will be responsible for making the payment for the vehicle repair directly to the workshop, thus avoiding intermediaries.

Points to consider regarding partial compensation from auto insurance

• Before making a claim, it is recommended to check the damage caused to the vehicle, because if it is minor, it is more worthwhile to repair it yourself. This is because, when making a claim, you will have to pay the deductible and this fee may be higher than the repair fee.
• Even if you choose not to activate the insurance in the event of a collision or some other damage, it is important to inform the insurer about what happened, as, in the case of an inspection, there may be discrepancies with the information provided at the time of signing up.
• Payment of partial compensation from auto insurance may not occur in some situations: not all requested documents are presented; the insurance does not cover the type of loss that occurred; in the event of default, with installments in arrears, the right to insurance coverage is lost; or if full compensation is paid.

It is important to note that every time the insurance is activated, the insurance loses part or all of the bonus it has and this will influence the discount that it will receive when renewing the insurance.

Now that you know how partial compensation for auto insurance works, in the event of an accident, notify your insurance company so that they can repair your car, but don't forget to fulfill your obligations.

Do you have any further questions about partial compensation for auto insurance? Check out our Frequently Asked Questions or leave your comment below.