Do you know what total vehicular loss is in auto insurance and what to do if it happens to you? Read the article and understand better.
The biggest fear of anyone who has a vehicle, especially if it is still being paid, is to have the car stolen or stolen, or to suffer an accident that causes total loss. Total loss on auto insurance is even one of the main reasons many auto owners get auto insurance. But do you know what total loss is in auto insurance, and when does it occur?
Total Loss in auto insurance, popularly called PT, is the term used when a vehicle is declared incapable of being repaired or when its repair would have a repair value greater than 75% of the market value.
When does total loss occur in auto insurance?
In a simple way, insurers consider that there is a total loss of the vehicle in the event of a collision or fire, for example when the repair costs exceed 75% of the value of the insured, ie Estimated by the FIPE table.
Experts from the insurer or DETRAN accredited can declare two different types of total loss:
Loss: when a collision, fire, flood or other event prevents the normal circulation of the vehicle.
Financial: when it is possible to repair, but the value of the repair exceeds 75% of the value of the vehicle in the FIPE table.
Let’s suppose that a vehicle insured in the amount of R $ 30 thousand suffers a collision and the repair of the car is in R $ 18 thousand. Even if the car looks very damaged, the repair did not reach 75% of the value of the car, so the insurance does not consider a total loss of the vehicle, and does not indemnify the insured 100%. In this case, the insured must also pay the deductible amount defined in the contract.
Now, let’s say that the repair of your car would be R $ 25 thousand, in which case the insurer would pay the same amount as the car in the FIPE table.
But there is an observation, if the accident happens within 90 days after the purchase, and the car has been insured from the concessionaire, the amount paid will be related to the value of the purchase of a zero in the store. After this period, the value will be that of the FIPE table
What to do in case of total loss in auto insurance
There was no way, it was total loss. And now? If you had insurance, just wait for the money to fall on your account. Insurers take between 7 and 30 days to pay the indemnity and you do not have to worry about the vehicle being destroyed anymore and you can ask for partial refund of the IPVA.
If you do not have insurance, an expert authorized by DETRAN needs to prepare an award that you must take to DETRAN in order to be able to cancel your car so you can request a partial refund of the IPVA.
How to have the IPVA refund of car that suffered total loss?
Yes, the IPVA can be partially refunded in case of total loss, theft or theft. In either of these cases, you calculate how many months are left until the end of the year from the month of the total loss, complete a form, and take DETRAN to get a refund of the amount paid for that period.
Let’s say you hit your car in June and it was total loss, you used the car six months of the year but the remaining six months you will not have the same vehicle. Therefore, you can recover the amount paid to the IPVA for the months of July through December. Any questions, consult a DETRAN agency.
Whatever the case, total loss is an unpleasant situation, so be sure to keep in touch with the insurer to expedite the inspection process, repair authorization or indemnification.