New car insurance rules begin to apply; see what changes

In the subscription car service, maintenance, insurance, property tax and all the bureaucracy are under the responsibility of the dealership, and with fixed expenses, it can even be cheaper for the consumer.
Car insurance will get simpler and you will be able to weigh less in your pocket. Credit: Freepik

Taking out insurance for your car should get easier and even cheaper starting this September. Since this Wednesday (1st), new rules and criteria for this type of insurance began to apply in Brazil. The changes were established by the Superintendency of Private Insurance (SUSEP) and published in the Official Gazette of the Union (DOU).

The purpose of the changes is to make the insurance contracting process simpler, reducing the value of the policy according to the services chosen by the client, who will be able to contract the insurance in a personalized way according to their needs.

Under this model, the contracting party can choose to pay only the service for accidents and not for theft and robbery, or vice versa, in addition to contracting insurance only for a part of the vehicle. This can make the cost of the service adaptable to the consumer’s pocket and thus become more affordable. Susep, however, does not estimate how much customers will be able to save.

Another novelty is the fact that the policy no longer necessarily needs to be in the name of the car owner, which will mainly benefit application drivers and drivers who rent cars for the weekend, for example. This is a modality in which the insurance will be taken out without the exact identification of the vehicle.

An option will also be the optional civil liability coverage, assistance and personal accident of passengers linked to the driver, which also applies regardless of who is the owner of the vehicle.

Another novelty is the authorization to market damage coverage covering different risks, allowing partial coverage. An example: the policy may only cover the front of the car, mirrors and windows, and not the entire vehicle.

Rules were also changed that, according to the entity, can lower the cost of products. Insurers are now able to charge deductibles in cases of full compensation or fire, lightning and explosion, which was previously prohibited.

They are also able to demand in the contract that repairs be carried out exclusively in a workshop belonging to the insurance company’s accredited network.

For the National Federation of General Insurance (FenSeg), the prospects for the new rules are encouraging and could lead to an increase in the number of policyholders.

“The new rules pave the way for a scenario of innovation and competitiveness, which should expand the base of policyholders,” informed FenSeg, which stressed that it is still too early to predict what the scenario will be with the new rules in force.

“The change is still very recent, it will take some time for companies to structure themselves. You need to test the acceptance of new products, to find out if they will be commercially viable”, informed the Federation.

Insurers have up to 180 days from this Wednesday (1) to adapt. The sector welcomes the benefits of flexibility, such as increased competitiveness and the possibility of attracting the share of vehicles that have not yet been insured. The full standard can be accessed at this link

Auto insurance is one of the main modalities in the country, being responsible for collecting R$ 17.43 billion in premiums in the first half of the year. The value is 6.8% higher than the same period in 2020. However, data from Denatran and SUSEP indicate that only 16% of the vehicle fleet in Brazil had insurance coverage in 2019.

AUTOMOTIVE INSURANCE: UNDERSTAND THE MAIN CHANGES

New modalities of vehicle insurance

  • The insurance may be linked to the driver, allowing its use in rented, shared vehicles, etc;
  • Personalized insurance: the contractor can choose to pay only the service for accidents and not for theft and robbery, or vice versa;
  • Mileage insurance: a method in which the customer will pay according to the use of the vehicle. The final amount will be calculated from a fixed amount plus a variable charge according to the distance covered;
  • It will be possible to do partial coverage. The policy may, for example, cover only the front of the car, mirrors and windows;
  • Optional civil liability, assistance and passenger personal accident coverage option linked to the driver, which also applies regardless of who owns the vehicle;
  • Hull coverage can be made for one or several different types of chosen risks, be it theft, robbery, collision or fire.

combo

  • Auto insurance can be taken out along with other types of insurance, such as home and business.

New possibilities for insurers

  • Insurers are now able to charge deductibles in cases of full compensation or fire, lightning and explosion, which was previously prohibited;
  • Insurers may provide in the policy that the repair of the vehicle will be carried out exclusively in an accredited network workshop.

* With information from the State Agency

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