What are the types of compensation for car insurance?

When a person takes out car insurance, they choose which coverages will be included according to what the insurer has to offer.

Depending on what was chosen, the person will receive compensation in the event of an accident, that is, if the car suffers any damage, they will receive a full or partial amount.

Coverage may include only theft, robbery and fire or be comprehensive, in which case it will include other situations such as collision, rollover or skidding, an external object falling onto the vehicle, etc.

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Types of car insurance compensation: amounts

After choosing the coverage, you must choose how the compensation will be made, with two options: referenced market value or determined value.

In the case of a determined value, the client will receive from the insurer the amount described in the contract, however it is common for minimum and maximum limits to be established for this.

In the case of the referenced market value, the Fipe table is normally used to pay compensation.

In this case, you can choose the adjustment value, which is nothing more than a percentage that will be applied to the table.

After choosing the compensation payment method, you need to check which type of compensation your case falls under.

Types of auto insurance compensation: partial or full

Partial compensation occurs when the vehicle suffers some type of damage that does not exceed 75% of the total value of the car.

In this case, the insurer will take care of repairing the car, using parts of good quality and the insured must bear the deductible determined in the contract.

This means that the car must be taken to a mechanic's shop, which will provide an estimate and a report stating that the damage can be repaired.

Once the insurance company approves the quote, the repair can be carried out.

The insurer must pay the local the amount corresponding to the deductible (this amount is specified in the contract) and the difference will be paid by the insurer.

It is worth noting that the repair should only be carried out after the insurance company approves the quote, if this does not happen there is a risk of not being compensated.

Full compensation is made when the vehicle is stolen or robbed and cannot be located, this is because the vehicle no longer exists and must be compensated for.

Another situation that is characterized as full compensation is when the car needs repairs, but these exceed 75% of its total value.

As repairs are very expensive in this situation, insurance companies declare the vehicle a total loss and pay the listed price for it.

If the vehicle is stolen or robbed, it is necessary to prove this situation through the Police Report, without it the compensation process will not proceed.

In the case of total loss, that is, when the damage is quite extensive and repairs are not worthwhile, there must be a report.

This may be done by a professional indicated by the insurance company itself or by another means indicated by it.

There is also compensation for damages to third parties and when this is contracted it allows people who were involved in the accident to be compensated.

It will cover material and moral damages and medical and hospital expenses.

In this case, compensation is paid directly to these third parties or to their deponents in the event of death.

Vehicle repairs are paid to the workshop and medical and hospital expenses to the hospital itself.

This type of payment occurs when the injured person contacts the insurance company and provides the insured's details.

From then on, measures will be adopted so that compensation can be paid. It is worth remembering that there is a limit for repairs and these respect what is provided for in the contract.

Deadlines for payment of car insurance compensation?

Insurance companies have a period of 30 days to compensate your insurer, which may be reduced according to each company's procedure.

However, it is worth noting that this period only starts to be counted from the moment all documentation is delivered to the insurer and not from the moment the claim is reported.

If any document is missing, the deadline may be suspended until it is sent, and it may take longer for the insurance payment to be made to the injured party.

Is it true that it is not always worth claiming insurance compensation?

Yes. When it comes to minor damages such as a dent in the door, scratches in the paint and others that have a low cost to repair, it is more interesting to bear this cost.

This happens because when the insurance company is called to pay compensation for partial damages, the insured will have to bear the costs of the deductible, which often ends up being higher than these small repairs.

Another point is that every time the insurance is activated, this is recorded and reduces the insured's bonus class.

When the renewal is made, it will not be possible to offer such an attractive discount.

Knowing how car insurance compensation works makes it easier to know when to contact the company and have an idea of ​​what the procedures will be.