Total Loss Indemnity (Auto Insurance), how does it work?

The Auto Insurance offers several advantages to policyholders (whoever hires), among them is the indemnity in case of a total loss of the vehicle (accident).

This is one of the main points that motivate people to take out Auto Insurance.

Because one of the risks that all drivers are prone to be getting involved in a traffic accident, isn’t it?

And if that happens, will you be forewarned?

Because if your vehicle is insured, you can be relaxed about unforeseen events like this.

Now let’s go a little further to address the topic of this post, okay?

Do you know what Total Loss is?

In most cases of a total loss, it is enforced in the contract (policy) that the amount paid will be under the File Table.

It is important to emphasize that, in the indemnity, the Insurance will not give you another vehicle (car or motorcycle) but the value of the Fire Table.

The Fire Tablet is a table that gathers reference values ​​in the national market, serving as a parameter for negotiations or valuations.

As soon as your vehicle has an accident, you will need to contact the Insurer and trigger them.

The Insurer will request a series of documents and assess the vehicle.

In cases of a total loss, ownership of the vehicle is transferred directly to the Insurer and the owner receives compensation for the vehicle. Thereafter, the Insurer has a period of up to 30 days, determined by SUSEP, to make the indemnity.

But what if it’s Total Loss and my vehicle is financed?

In this case, when an asset is financed, its owner is the finance company (usually a bank), so the Insurer pays off the finance with that entity first. And the balance of the total indemnity, unpaid in the policy, is paid to the Insured.

In this way, the Insured will be free of debt and there will be the remaining amount of the Insurance indemnity in their hands (Table Fipe).

Now, after this information, I’m sure you’re convinced that investing in Auto Insurance is super beneficial, isn’t it?

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