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The auto insurance market often raises many questions, a good example being the term technical restriction in auto insurance. Want to find out what it means? Then read this article and understand the subject better!

One of the biggest difficulties faced by customers in the world of insurance is nomenclature.

After all, this corporate environment tends to use many technical terms and words that sometimes don't seem to make any sense.

Like the term “technical restriction in auto insurance”, for example. Many people don’t understand exactly what it means. If you fit into this group, read this article and understand the subject better.

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What does technical restriction mean in auto insurance?

The term technical restriction in auto insurance is used when the insurer, motivated by the identification of risks in relation to the safety or efficiency of the equipment installed or found in the vehicle, refuses the proposal to insure the vehicle.

This refusal may occur based on criteria established solely by the insurer, and may vary from one company to another.

This means that if your proposal was rejected by one insurance company, it may be accepted by another.

Why might the insurance company reject my insurance proposal?

All insurance companies work with the right to deny an insurance proposal if the vehicle or driver profile presents a very high risk margin.

This refusal can occur for a number of reasons and must always be given with a justification.

In this case, a technical restriction in auto insurance is a justification related to the vehicle's safety equipment. It is given when the insurer considers that these are not in adequate conditions, and the risks of accidents or problems are greater.

Another reason why many insurance companies refuse insurance proposals is conflicting information.

Often, customers, in an attempt to obtain lower prices for their policy, provide information that is not exactly true.

And during the analysis process, which usually takes 15 days, once all the documentation is delivered.

The company ends up finding disconnected information, which is why they reject the insurance proposal.

However, it is worth remembering that the insurer has a 15-day deadline to refuse to accept the insurance proposal. If this does not happen within this period, it will no longer be able to do so.

Being obliged to accept the vehicle and the customer as insured.

This is a rule stipulated by SUSEP – Superintendence of Private Insurance, the body responsible for regulating the insurance sector in Brazil.

Main reasons that lead to a technical restriction in car insurance

There is no single reason, or predefined rules and regulations that promote the acceptance or rejection of an auto insurance proposal.

However, it is possible to list some reasons that are constantly presented by insurers in their statements refusing insurance proposals, these are:

• Vehicles with a negative technical evaluation;
• Old cars, over 15 years old, are usually rejected because they are more likely to have defects;
• Cars that are no longer manufactured have more difficulty in replacing parts;
• Cars with tampered or re-marked chassis, this could be a sign of a vehicle that has already been stolen;
• Cars with documentation or registration problems;
• Imported cars are expensive because they usually have very expensive replacement parts and very high compensation.

These are some of the main reasons why insurance companies reject insurance proposals.

Since, if it accepts a vehicle within one or more of these conditions, and an accident occurs, it may end up losing out.

What should I do if my vehicle has a technical restriction on my auto insurance?

If your insurance company refuses your claim due to technical restrictions, don't despair. The first step is to contact other insurance companies and get new quotes.

Surely some company will consider your vehicle acceptable and provide you with insurance.

However, if you are unable to get approval from any company, or even if you do, but the amounts are too high, there are other options.

We are talking about vehicle trackers, there are many companies on the market that offer this type of equipment, with 24-hour monitoring service and a series of other benefits.

Tracking and monitoring services do not offer protection against damage such as collisions, fires, etc., but they are very efficient in cases of theft or robbery, increasing the chances of recovering the vehicle by up to 99%.

Therefore, even if you cannot count on auto insurance coverage to completely protect your vehicle, it is worth having a tracker and an efficient monitoring service.

Additionally, by having a tracker in your vehicle, your chances of getting auto insurance coverage increase.

It is even possible to purchase coverage together with the equipment that guarantees compensation if the vehicle is stolen or robbed and not recovered.

Not all refusal is promoted by the vehicle

In many situations, the insurer's refusal does not occur due to a technical restriction in the auto insurance, or problems related to the vehicle.

The driver of the vehicle is also analyzed, and may be grounds for refusal of the policy.

See some of the reasons why insurance companies refuse to provide services based on the driver's profile analysis:

• Drivers with a long history of accidents and claims are often refused;
• People with a history of default;
• Drivers with suspended licenses;
• People who are responding or have already responded to legal or administrative proceedings due to drunk driving.

In other words, the driver's lifestyle and history also count when analyzing the insurance company's acceptance or refusal.

However, we repeat that if your auto insurance proposal is denied by the insurer with the justification that technical restrictions were found.

Don't be discouraged, you can try other insurance companies. After all, refusal policies vary from one company to another.

In addition, you will also be able to count on a tracker and a monitoring service.