What are the basic coverages of car insurance?

Basic car insurance coverage protects the vehicle from what are considered “major accidents”. If this option is not enough, the driver can purchase additional services. Read on to find out everything about each option.

Insurance companies consider the protection of the vehicle's hull as basic coverage in car insurance. In other words, protection against accidents that could harm the car and its operation.

In general, basic auto insurance coverage provides protection against fire, accidents, and theft. Other claims are also listed, but these may vary depending on the insurance provider.

Therefore, it is important to research the insurance you want thoroughly. Only then will you be sure to purchase the one that best meets your objectives. Below, we have listed the coverages normally present in basic insurance and in more comprehensive insurance.

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Basic coverage of car insurance

As mentioned, basic insurance coverage seeks to protect the vehicle from the most common problems. This includes collision, fire, theft or robbery, and problems caused by windstorms, floods, lightning and similar events.

This type of insurance may also include what is known as Optional Vehicle Civil Liability (RCF-V). In this case, the insurer is responsible for covering damages to third parties. Damages may be personal, moral or material, and are paid when the insured vehicle is involved in an accident.

When it has coverage for Personal Accidents for Passengers (APP), the insurance offers compensation to the passengers of the insured vehicle. Again, the coverage is for damages of all types, including payment for medical care. In the event of death or physical injury to the passenger, the insurer pays the compensation to the individual's beneficiaries.

There may also be coverage for problems such as any external object falling onto the vehicle, as well as damage caused by third parties.

How does insurance compensation work?

Payment of compensation to the insured follows two rules. First, the cost of repairing the car is a maximum of 75% of the value of the vehicle. Therefore, the insurer pays part of the costs.

To repair the vehicle, the consumer must pay the deductible. The deductible is the amount that the individual is responsible for in these situations.

Imagine that your car is involved in an accident. The repairs will cost R$3,000, and your deductible is R$500. In this situation, you will pay R$500 of the total amount, while the insurance company will pay the remaining R$2,500 for the repairs.

It is important to note that the insurance company will only cover part of the costs if they exceed the user's deductible. Otherwise, the individual will have to pay for the repairs themselves.

When the damages account for more than 75% of the car's value, the procedure is different. In this case, the insurer pays the consumer the amount corresponding to the total value of the vehicle. Normally, the value established in the FIPE Table is used. This way, the user can purchase a new car. The procedure is the same for when the car is stolen and not recovered.

Regardless of the type of payment, the consumer must file a claim. In other words, they must report the problem to the insurance company and then request an assessment. The insurance company has up to 30 days to complete its internal process and offer the appropriate compensation. This deadline is general for all companies, as it was established by Susep (Superintendence of Private Insurance).

What additional coverage is available?

If you feel that not all of your needs have been met by the basic coverage of your car insurance, you can purchase additional coverage for your vehicle. Each of these new protections will cost you an additional amount in your insurance policy.

There are several additional coverage options, and they vary depending on the insurance company. The most common ones include protection for accessories (such as car radios and TVs) and for damage to windows, lights, headlights and rearview mirrors.

Some insurance companies also offer 24-hour assistance, a backup car, and more. 24-hour assistance can be particularly useful for towing in situations of dry or electrical failure, or tire blowouts. With all the extras, the user has greater assistance in case of problems.

Basic or full coverage: which one should you buy?

It's hard to disagree with the importance of car insurance. In addition to protecting the consumer against financial losses, this service ensures care for the car and assistance in times of need.

Still, around 70% of vehicles in Brazil are not covered by insurance. The data comes from the National Confederation of General Insurance Companies (CNSEG). If you don't want to be part of this statistic, you can at least purchase basic car insurance coverage.

Basic insurance options are recommended for a “basic” consumer. In other words, for drivers who only want to protect their vehicle against theft, robbery or minor accidents. Although they include other services, standard coverage is most commonly used for these types of accidents.

A brand new car benefits even more when it has additional assistance. Especially because new vehicles are more likely to be targeted by thieves. By adding additional services to the basic ones, the vehicle gains quick assistance from the insurance company for day-to-day problems.

Before choosing the basic coverage for your car insurance policy, or additional coverage, talk to your broker. By carefully evaluating your type of car and your driving location, the specialist will be able to recommend the ideal coverage. Remember, in any case, to only purchase what you need. For example, there is no point in protecting a car radio if you do not have one.