Auto insurance changes to get better
“The new rules encourage the creation of new products, with a clear gain in efficiency”, says President of FenSeg
Taking out auto insurance is usually a process full of bureaucracies. With the objective of making the service simpler and cheaper, the Superintendency of Private Insurance (SUSEP) established new rules for vehicle insurance, which came into force on September 1st.
Customers can select which assistances best match their profile and fit in their pocket, which should generate savings in the policy. Thus, the vehicle owner chooses to pay only coverage for accidents, for example, or theft and robbery. It will no longer be necessary to hire the standardized package, as he will be able to choose the assistance he prefers. However, if this is the option, in case of theft or robbery, the customer will only receive a portion, and not 100% of the value of the car, which will also lower the value of the insurance.
In addition, the customer has the option of making partial coverage: the policy may cover, for example, only the rear-view mirrors, the front of the car, windows etc. And, individually or in combination, different risks, such as theft, robbery, fire or collision.
Insurance linked to the National Driver’s License (CNH) was also regulated, in which coverage is linked to the driver and not the vehicle. This modality aims to attract those who usually rent cars (such as app drivers) and car collectors. With the service, the driver can drive different vehicles and remain protected, in addition to being able to hold models with no age limit for use. This type of policy, however, will not cover damage related to the automobile. The coverage may be optional civil liability, which covers assistance and personal accidents for passengers and third parties linked or non-driver, regardless of who is the owner of the vehicle.
Now insurers will be able to charge deductibles in cases of full indemnity (characterized when the losses resulting from an accident exceed 75% of the vehicle’s value), fire, lightning or explosions. Before, it was only possible to charge deductibles in the case of partial indemnities.
According to the superintendent of Susep, Solange Vieira, the new regulation is important to make the service more accessible to the population and to develop the sector in the country. Data from Denatran and Susep indicate that only 16% of the vehicle fleet in Brazil had insurance coverage in 2019. If cars with up to ten years of manufacture are considered, the percentage reaches 33%, a number that is still considered low.
“We have been working so that insurance is increasingly an option for citizens to be able to protect themselves and their assets. Changes in car insurance will provide many opportunities for the market and especially for new insurance consumers. It’s about offering more access and choice,” says Solange.
Antônio Trindade, president of the National Federation of General Insurance (FenSeg), is also optimistic about the changes: “The new rules encourage the creation of new products, with clear gains in efficiency. The result is increased competitiveness and innovation in the segment”, says the executive.
According to Trindade, the news will encourage insurers to structure new products. Services already on the market, however, have up to 180 days to adapt to changes.