What is hull insurance? Understand everything about Auto Insurance

Hull insurance aims to protect the vehicle with certain contracted coverage. Understand how it works, its function and rules.

When taking out insurance, it is important to talk to a broker. After all, the specialist can help you define the best coverage for your vehicle.

Knowing the importance of this care, you looked for a broker to negotiate insurance.

Throughout the conversation, however, he never stopped mentioning “hoof insurance”. And you, haven’t stopped asking yourself: “what is hull insurance?”.

Hull insurance is nothing more than insurance for damage to the vehicle. It is also called auto insurance, car insurance and the like.

The name is used to differentiate this type of protection from coverage for third parties. Third-party insurance coverage pays for the losses of a car involved in an accident with the insured.

For example, a vehicle in which the insured collides. Having this service is interesting because, with it, the user does not have to bear third party losses out of their own pocket.

Coverage for third parties is an additional option to the insurance, which can be taken out whenever the consumer wishes. In addition to this, there are several other additional coverages, which may or may not be interesting to the user.

Therefore, it is always worth evaluating the different services offered by an insurance company. Keep following the text and find out what they are!

Image: Getty

Advertisement

What does hull insurance cover?

The coverage offered by insurance varies greatly by company. Some insurers only offer the most basic ones, while others insure the vehicle with very specific extras.

Therefore, when purchasing your insurance, it is essential to do a lot of research between companies. This way, you will be sure to hire all the necessary services.

Another point for which research is important is the price of insurance. Several factors influence the price of the service, and insurers give greater weight to each of them.

There are companies where the driver's age is a key aspect. Others prefer to evaluate the vehicle model and its type of use.

So, getting different quotes will allow you to find more affordable prices.

Before presenting hull insurance coverage, we also need to highlight the importance of taking out all the necessary coverage.

The cost of insurance also takes into account the number of coverages contracted by the consumer.

Seeking to save money, many customers exclude some protections from their plan. This strategy, however, can bring more problems than savings.

Imagine that your city suffers from constant flooding. To save money, however, you excluded flood protection from your insurance.

Then a flood happens and your car is completely damaged.

The result will be an immense loss! You could be left without a car if it has been badly damaged, or pay high amounts for repairs.

In other words: the amount paid for coverage would be much less than your loss.

On the other hand, with flood coverage, you would have full support from the operator. In the event of total loss of the vehicle, the insurance would pay compensation for the purchase of a new car.

If the loss was partial, part of the repair costs would be paid by the insurance company.

Below, we list the types of coverage available in car insurance.

Partial coverage

Partial coverage is very common for customers who want more basic protection for their vehicle. It only covers the car in cases of theft, theft and fire.

Basic coverage

Basic coverage is a little more comprehensive and is contracted as a single plan.

If desired, the user can add additional coverage to this plan, as we will explain in the next topic.

Insurance with basic coverage offers protection against theft, theft, fire, collision, lightning strike, object falling onto the vehicle, damage caused by third parties and others.

The simplest hull insurance coverages may vary by insurer.

Additional coverages

Each insurer can offer unique coverage, and they offer extra protection.

Some of the additional coverage protects the car's windows, its gas kit, accessories (such as car stereo and fog lights), armor, a spare car in case of an accident and others.

A point of attention when purchasing insurance coverage is to consider that additional protections are not covered unless you purchase them.

They, and all other issues not covered, always appear in the policy as an excluded risk.

Therefore, read the entire insurance agreement and check which coverages appear as excluded risks. Therefore, if you wish, you can purchase specific protections for the vehicle.

Is there a deductible for hull coverage?

Whenever a partial loss occurs, the consumer needs to pay their deductible. Partial loss occurs when the car needs to undergo repairs at a workshop.

To be classified as partial, repairs must cost less than 75% of the vehicle's market value.

The deductible is an amount that the user pays directly to the workshop, so that their car can be repaired. The value aims to ensure that the insurer and user “share” the costs of the accident.

In this way, the insurer seeks to encourage greater driver prudence.

After all, knowing that he will have to pay part of the repair costs, the driver will take greater care of the vehicle.

The deductible amount can be fixed or percentage, but is always specified in the policy.

When signing up for hull insurance, it is possible to change it, leaving this value more or less high.

Deductible costs directly influence the price of insurance: the higher the deductible, the lower the amount paid for protection.

However, in the event of an accident, the consumer with the most expensive deductible pays most of the repairs.

What is the maximum compensation amount?

The maximum hull insurance compensation amount depends on the agreement made with the insurer.

The most common, however, is that compensation takes into account the full value of the vehicle, based on the FIPE table. This, of course, in the case of full compensation.

Full compensation is paid when the vehicle suffers damage greater than 75% of its market value.

It is also paid by the insurance company when the car is stolen or stolen, and not recovered by the police.

In any case, the value of the compensation may vary, paying, for example, 110% of the value in the FIPE table.

It is essential to check what was defined in the contract

The amounts of partial compensation depend on how much the repairs will cost. In other words, they depend on the budget made by the workshop.

In cases of partial insurance, there may be a maximum limitation on compensation amounts, even if the car has a higher market value or a higher repair cost.

Do I need to undergo an inspection to have hull insurance?

Whether or not an inspection is mandatory depends on the policy adopted by each insurer.

When it comes to partial insurance, which only covers accidents such as theft or theft, the inspection is usually exempt.

However, in situations of basic, more complete coverage, and additional coverage, the inspection is usually carried out. In these scenarios, the insurance is only released after the inspection report.

However, this usually only occurs when purchasing insurance. For policy renewal, the inspection is normally unnecessary.

How long is hull insurance valid for?

The most common thing is that hull insurance is valid for a period of 12 months. It can be renewed whenever necessary.

When renewing your insurance, users can usually count on discounts thanks to their bonus class.

A bonus class is obtained by the insured whenever, during a contract year, he does not make any claims.

Each class guarantees a discount percentage, which also varies by insurer.

There are also cases where hiring is done for 24 months. The main advantage of the option is the discounts offered for the longer contract period.

In addition to these, there is insurance for reduced or extended periods. However, this is a policy that varies by insurer, and they are free to make these deadlines more flexible.

Now you know a little more about how hull insurance works and what its function is.

Take the opportunity to get a quote for your hull insurance, choose your coverage and protect your car!