What is a car insurance company?

Do you have a new car and want to take out insurance, but don't understand anything about it? Don't worry, in this guide we'll explain what a car insurance company is, how they work and much more.

Many people are realizing their dream of having their car and, afraid of losing it, whether in an accident or theft, look for car insurance. However, most of these people don't understand very well what a car insurance company is, how insurance works and everything else.

To help these people, we have prepared a complete guide on this subject, where we will explain in a simple and clear way each of the items involved in contracting this service and the main terms used in this medium, follow along.

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What exactly is car insurance?

To make this guide complete and easy to understand, we will first explain what car insurance is and how it works. This service is nothing more than a contract concluded between an ordinary person (insured) and a company (insurance company).

This contract, called a policy, serves to establish the provision of services where the insured pays an amount so that the insurer is responsible for any problems that may occur with the vehicle, with possibly high costs, such as collision, fire, theft, etc.

It works like this: the customer comes to the company and requests insurance coverage, with protection for different situations, pays a determined amount based on information that may increase or decrease the risk of these problems occurring, and then they will have taken out insurance.

From that moment on, the insurance company will be responsible for any eventuality that may happen to the car. If the insured (client) crashes his car, for example, he simply needs to call the insurance company, open a claim (the name given to problems related to the vehicle) and ask for assistance.

He must pay an amount called deductible, which must be stipulated when contracting the service and after that, all expenses and arrangements will be the responsibility of the insurance company.

What is a car insurance company?

A car insurance company is a company that specializes in providing financial protection services to its customers. In this case, they are responsible for compensating their customers, should a problem happen to their vehicle, this service is known as car insurance.

As previously stated, insurance companies offer this protection through contracts, called policies, where all the conditions for compensation to occur must be clear and approved by both sides, client and company.

To be able to contract this type of service, the customer must make a single payment, called a premium, for contracting and, later, when an accident occurs and it is necessary to request the service from the insurance company, another smaller payment, called a deductible.

How to hire the service of a car insurance company?

The most recommended way to take out car insurance is through an insurance broker, a professional who can work either independently (as long as they are properly registered) or with an insurance broker.

The broker is the professional who knows all insurance companies, their coverage offered, values ​​and benefits. Therefore, he is the best person to help you find the company or service that best suits your needs.

Furthermore, he helps with the entire car insurance process and, when an accident occurs, you can contact him so that he can take care of all the bureaucratic aspects of the situation and help you in the best possible way.

How to find reliable companies and brokers?

Car insurers, as well as insurance brokers (brokerage companies) and brokers (brokerage professionals), are supervised by a single body. We are talking about SUSEP – Superintendency of Private Insurance, an agency linked to the federal government, responsible for supervising all companies and professionals in this sector in the country.

In addition to observing whether companies and professionals work within the laws, SUSEP is also responsible for ensuring the smooth functioning of the sector and promoting the rules to be followed.

All responsible and reputable professionals and companies, who work within the laws, are registered on the SUSEP website. If you want to know if a company or freelance professional is trustworthy, you can do a quick and free search on the website.

How to search for an insurance company or broker on the SUSEP website?

If you want to know how to search for a company or broker on the SUSEP website, don't worry, this is a simple task. All you need to do is access the SUSEP website.

When you enter the website, you will find a menu in the sidebar on your left, where you can perform both searches, see the path:

Search tip: pay close attention to the correct spelling when searching, if you change a letter or write a wrong name, you will not be able to find the company or professional you are searching for, even if they are duly registered and within the law.

What car insurance companies operate in Brazil?

There are currently around 120 insurance companies registered with SUSEP and operating throughout the national territory. Among them, some stand out in relation to prices, services and assistance provided.

According to a survey carried out in October 2018, based on a score given by customers on the Reclame Aqui website, the 15 best Brazilian insurance companies in 2018 are:

Table 1: Research carried out on October 28, 2018 on the Reclameaqui website.

How to take out car insurance?

If you consider yourself a layman on the subject and want to get a good deal, the best option is for you to look for a trustworthy broker or broker and get a car insurance quote to hire the service.

The professional will collect some information such as vehicle maker and model, year of manufacture, driver's gender, how many drivers drive the vehicle, addresses: residential; of work; school; etc., and more.

With this information and knowledge of the type of coverage you want, he will be able to provide quotes from the best insurance companies.

You need to know the type of protection you are looking for, car insurance can offer coverage against theft, robbery, collision, fire, natural disasters (such as floods), coverage for glass, accessories, etc.

There are many coverage possibilities and it is essential that you choose the most important ones for your case, after all, the more coverage you choose, the more expensive the insurance will be.

After the quotes have been made, you just need to choose the offer with the best services and values ​​for your case and proceed with the contract. The next step will be the vehicle inspection.

The insurer will carry out a vehicle inspection to find out the real condition of your vehicle and whether it can actually be protected by the insurer. After this inspection, the company will have a period of 15 days to approve or deny protection for your vehicle.

If your insurance proposal is approved and the policy is signed and paid, your car insurance will be valid for a period of 12 months from this date.

During this period, in addition to being able to count on the protection contracted, you can count on other services also offered by the insurance company, the well-known 24-hour assistance.

This is a package of services, which can be used when necessary without having to pay a deductible. These services include towing, locksmithing, mechanical help, help for dry or electrical breakdowns and much more.

Now that you know more about what auto insurance is, what a car insurance company is and how these companies and services work, it will be much easier to purchase adequate protection for your vehicle.

*This text is editorial content and does not guarantee the sale of this product on this website.