What is the difference between group and individual car insurance?

When purchasing car insurance, it is essential to be sure which type of protection is best for your car. Find out everything you need to know about group car insurance and individual car insurance.

Having car insurance is increasingly important.

After all, the rate of violence and collisions in cities and roads is high.

But which is the best option: group car insurance or individual car insurance?

To answer this question, you need to carefully evaluate each type of insurance.

This is because they have different characteristics, and each of them better fits a user profile.

When hiring, you will also need to choose normal or reduced excess auto insurance. Want to know how? Let me help you choose 😉

In addition to these points, several other aspects will need to be carefully evaluated when taking out insurance.

So that you can make the best choice, below we talk not only about the differences between group car insurance and individual car insurance, but also about the various important points for analyzing insurance.

Follow along with the text!

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Main features of group car insurance

Group car insurance can be taken out both for commercial fleets, with trucks, as well as for groups of owners who wish to take out their car insurance jointly.

Its big difference from individual car insurance is the fact that the group contract includes several cars on the same policy.

In other words, insurance is considered group when it covers more than 2 cars.

Or even a larger amount, depending on each insurer.

All of this means that employees of a company or members of an association can come together and take out insurance together.

In these cases, contracting fees tend to be lower, as the number of clients is greater.

In general, this type of insurance offers coverage such as:

• Compensation in cases of accidental damage;
• Robbery and theft;
• Compensation for injured passengers;
• Assistance to vehicles in cases of need;
• Civil liability for damages to third parties.

To take out group car insurance, you will need to request a proposal for this type of protection.

The policy generated will depend on the delimitation of some issues, such as fleet size, region in which vehicle traffic is carried out, pattern of accident history, characteristics of drivers in the interested group and others.

Types of group car insurance

Group car insurance can be taken out in two different ways.

The first of these is affinity groups, depending on the function to be fulfilled by the protected cars.

In this case, it becomes possible to include the fleet of affiliates and associations.

This means that a group of people, with a common interest, can take out insurance.

For example: sales representatives who work with personal cars.

As everyone has their own vehicle, the insurance will have individual policies.

However, it will be hired for the entire group, which results in lower values.

Want to know how to find cheap insurance? I show you, 🙂

The other way of taking out group car insurance is collective policies.

They are directed to vehicles that belong to a single person, which can be physical or legal. In other words, for fleets.

In this situation, the insurance may be increased for protected vehicles, as long as there is an extra charge for each new insured car.

This type is widely used for companies that work with vehicles such as trucks.

As there are a large number of vehicles for protection, they all have the same policy.

The objective of this strategy is to facilitate coverage by the insurance company.

However, if, in addition to trucks, the insurance plan also includes cars, it is more likely that two or more policies will be issued, each aimed at a different type of transport and coverage.

What is individual car insurance?

As its name suggests, individual car insurance is insurance taken out by a single person.

It also protects a single vehicle, having an exclusive policy.

Any individual can take out this type of insurance, as long as it is approved by the insurer.

Approved because, when making a quote, every driver has their profile evaluated.

This way, the company will know whether it is worth taking the risk of covering that user's losses.

How to operate for group car insurance and individual car insurance

When insured vehicles suffer damage, the user's loss is compensated in two ways.

First, through partial compensation.

It becomes available when the car suffers damage of up to 75% of its market value.

In situations of this type, the loss of the vehicle is partial.

You can then take it to the workshop and repair the damage.

To do this, the insured will need to pay the insurance deductible.

The auto insurance deductible is the cost the consumer is responsible for when repairing the vehicle.

It must be paid directly to the workshop.

Imagine, then, that the insured car suffers a collision.

Its repair will cost R$5,000, and the value of your deductible is R$1,000.

This means that you, the insured, will pay R$1,000 to the workshop.

The insurance company will pay the remaining R$4,000.

It is worth mentioning that, even in group car insurance, the deductible and indemnity values ​​are individual.

So, if only one vehicle suffers damage, only it will be repaired and its deductible will be charged.

What is integral loss?

Another way of reimbursement by the insurance company is through full compensation.

It is paid when the damage to the car is greater than 75% of its market value, making it impossible to continue using the car.

When available, full compensation is intended to allow the purchase of a new vehicle.

In addition to cases of full damage, it is paid when the car is stolen or stolen, and not recovered by the police.

Both types of compensation apply to both individual insurance and group car insurance.

In this way, group car insurance and individual car insurance only differ in the number of vehicles protected and certain rules for driving them.

After all, in group insurance taken out for a fleet, vehicles can only be driven by specific people and for professional purposes.

How to get the best car insurance?

When taking out car insurance, it is essential to pay attention to a few steps.

Through them, you will be able to find the best offers and coverage for your car.

To help you, we have listed these steps below. Follow along!

Search for insurance companies

Without a doubt, one of the most important steps in taking out car insurance is choosing the insurer carefully.

After all, if the insurance company offers a bad service, it will be the same as not having any insurance at all.

With this in mind, it is important to research companies that serve your region.

Then, you must check whether they are authorized to act.

Only companies registered with the Private Insurance Superintendence (Susep) can sell insurance in Brazil.

Your query can be made on the Susep website.

Choose the type of insurance

With the best companies selected, you will need to define the type of insurance you want.

That is, whether it will be individual or in a group.

In the case of group insurance, extra attention will be required.

This is because you will need to find a group of people who aim for the same coverage as you.

As insurance is contracted for several individuals, customizing each plan is unfeasible in most cases.

Select coverage

Soon after, you will need to select car insurance coverage.

Coverage is the situations in which the car will be protected.

It is possible, for example, to protect the vehicle against collisions, lightning strikes, theft and theft.

As well as floods, damage to third parties, passengers and much more.

Choose the type of franchise

It is also important to select the type of franchise you want. There are three main ones:

• The reduced one, cheaper, but which makes insurance more expensive;
• The basic one, which balances the price of the deductible and insurance well;
• The expanded version is more expensive, but makes the cost of insurance lower.

Get quotes

In the next step, you will need to obtain your insurance quotes.

Quotes, as you need to research the service in different companies.

After all, insurance coverage and prices vary greatly from insurer to insurer.

Researching will ensure you find more attractive offers.

Sign the contract

With the insurance chosen, it will be time to sign the contract.

Here, make sure you read and understand all the insurance rules, and comply with them.

If not, it will be worth negotiating with the insurance company.

But this is before signing the contract as, afterwards, you will need to comply with the established standards.

Ready! Now you know everything you need to know about group car insurance, individual car insurance and how to hire the best service.

Do you have any questions? Leave it for us in the comments!