Monthly Car Insurance - When Is It Worth It?

 

 

 

 

 

Today we’re going to talk aboutmonthly car insurance, and show our readers where and how to quote the best plans.

As we know, a good car policy is essential and of great importance. It seems like a joke, but most people who buy a car don’t have any insurance plan.

And the big reason is the lack of financial conditions.

Even more so when the car is financed, as the monthly installment consumes a large percentage of the owner’s monthly income.

And there is also the issue of an insurance company’s services that are charged for, such as vehicle tracking, for example.

However, vehicle owners have a great option that is gaining ground in the vehicle policy market day after day: monthly car insurance.

If you need to make a plan, read this text carefully and find out how to get a quote for a plan that fits your conditions and serves you with quality.

WHAT IS MONTHLY CAR INSURANCE

A plan that can be contracted for a value well below that of common insurance, however, it has a shorter duration than other vehicles.

Nowadays in Brazil, it is common to see families and people who have more than one car in the garage.

And this can be due to the rush of everyday life, or even to have a spare car in cities where vehicle rotation takes place in traffic.

But it is also very common to see people who are not even interested in a vehicle insurance policy, it is worth remembering that an insurance policy has a validity contract of at least 1 year.

Therefore, agencies have innovated in the quest to serve drivers who own vehicles, which is where monthly car insurance has gained ground in the market, it is also known as temporary insurance.

For example, monthly car insurance provides excellent travel coverage, and if the customer has more than one vehicle, one for travel and one for work, insurance is essential.

In other words, the owner can contract a plan only for a specific month, in which he will travel and enjoy all the services that are part of the plan.

This goes against common plans on the market that have a contract of at least 1 year and sometimes the amounts paid are not even used.

That’s what many people are currently thinking about vehicle policies ” Why pay for a 1 year contract if I’m not even going to use it?”

At the same time it is necessary to have a policy, which is why monthly car insurance is increasingly selling policies that above all bring satisfaction to customers in general.

But this option has not yet been generally adopted, nor is it mandatory for insurers to do so. So much so that only agencies linked to banks have chosen to work with monthly car insurance until now.

In order for you to have a good monthly car insurance plan, you must first do some good research into the prices and conditions of each agency.

This is the best way to conduct a negotiation that will bring you the best companies, the best plans and conditions for taking out insurance.

How does monthly car insurance work?

The client who wants to hire goes through the same steps as in normal plans.

In other words, the assessment involves risk of accident, inspections of the vehicle’s condition, analysis of the policy and finally the signing of a monthly contract.

To keep you up to date with the conditions of monthly car insurance, check out how each part of the plan will work below.

Risk of monthly car insurance claims

The insurer is the one who assesses the risk of accidents in a vehicle. Therefore, the company will know what the chances are of a vehicle being in an accident.

The value of the policy will be informed after the insurer sees the details that make up the car being insured. The data that is most observed;

  • Zip code – Where cars spend the night.
  • Age of the driver who will drive the car.
  • Year and model of vehicle.
  • Vehicle condition in general.

In this way, the greater the risk of an accident, the more expensive the policy will be for monthly car insurance. but the vehicle owner can save money by making good use of the vehicle, for example:

Avoid letting your car sleep on the street, the risk of robbery and theft is enormous when a vehicle spends the night outside the garage.

Men generally pay more for a monthly car insurance policy, they get into more accidents and tend to have a riskier performance while driving.

Car inspection carried out by the insurance agency

After carrying out the accident risk analysis, the next step is the inspection, which will show in detail the condition of the vehicle for which you wish to take out monthly car insurance.

It is through the inspection that the agency will learn about the real condition of the car, in all its areas, such as mechanics.

In other words, the better the condition of the vehicle, the more it will save when paying for the monthly policy.

Monthly car insurance policy review

After all the assessments, the vehicle will be approved and ready to receive the policy, then the insurance company will make a proposal to the car owner.

Here’s an essential tip for vehicle owners: Never sign a policy contract without reading the conditions completely, read it point by point.

The rights and duties of the insured and the insurer are listed in the document, this way they are informed until when their policy can be used.

Signing the monthly car insurance contract

As it is a monthly plan, the insurer will issue a contract with a current value of at least 30 days. But the customer can extend this period as long as he needs.

If the customer wants to extend the monthly car insurance policy, he must renew it every month. The ideal is to always look for the agency or your insurance broker before the end of the current contract.

As we can see, the vehicle owner cannot get tired of maintaining the service, as every month he needs to renew the contract.

When is it recommended to take out monthly car insurance

As we can see above, the monthly vehicle insurance plan can become boring and tiring, precisely because policy owners have to worry about renewal every month.

Therefore, it is recommended to make this type of plan under the following conditions:

  • When the vehicle is rarely used.
  • When the vehicle is loaned and does not have insurance.
  • If the annual insurance payments do not fit into your monthly budget.
  • For people who want to change their car soon and don’t want to commit to a long plan.

Although monthly car insurance is a little more expensive than annual plans, they end up generating savings in the customer’s monthly budget.

Vehicle insurance agencies are offering the option of paying the entire policy contract in 12 installments, this could be a great option too.

Monthly car insurance coverage?

The insured person who takes out a monthly car insurance plan will have the following coverage models available:

  • Robbery and theft
  • Collision
  • Fire
  • Personal and third party damage
  • 24-hour assistance

It is worth remembering that the coverage provided will influence insurance prices. Therefore, it is necessary to select in advance the protections that can be most used in your car.

For example, you don’t need to take out flood coverage if you don’t have this type of problem where you live.

The insured will have coverage in accordance with the signed contract, in case of partial and full loss.

  • Partial loss corresponds to damage that did not reach the 75% mark of the vehicle.
  • Integral loss occurs when the damage margin exceeds 75% of the vehicle.

In partial loss, the vehicle is taken to the workshop and repaired, where the insurer will pay for all necessary repairs, anything beyond that is paid via the insured’s deductible, for example:

If a vehicle suffers a collision and your repair costs are R$5,000.

The franchise has a value of R$ 1 thousand reais. This is the amount that the insured will pay to the workshop that works on the vehicle repair.

Therefore, the other R$4 thousand reais are paid by the insurance agency.

In the event of a complete loss, one involving more than 75% of your vehicle, the insured party does not pay the deductible. In addition, he will receive the full value of the vehicle to buy a new car.

This type of compensation is also paid when the vehicle is stolen or stolen and not found by the police.

Advantages of monthly car insurance

Prices for monthly car insurance are cheaper than other plans. This is the great advantage of this type of policy.

But here’s an important caveat, be careful when taking out this policy model, some insurers charge higher interest rates than in common plans, such as paying in 12 installments on annual insurance.

Therefore, the insured must know in detail the rates that are part of the insurance company and analyze whether or not it is worth contracting. For example, if the values ​​increase significantly, it is better to take out an annual plan.

Another benefit of monthly car insurance is that the insured does not have to pay any amount when paying off the policy, as it has a short validity period.

Currently Ituram – Vehicle insurers offer monthly insurance plans with coverage for vehicle theft or theft.

Disadvantages of monthly car insurance

Even though it is a simpler, faster and even more affordable way, this type of policy has some disadvantages.

The rates are not good or attractive, this shows that when compared with common insurance plans, the 12-installment annual plan is more worthwhile and better.

In addition, in the months that the vehicle owner does not take out the policy, he will be unprotected. This way, if anything happens during the months of protection, he will bear the costs.

Agencies that offer monthly car insurance

There are still few insurance companies that work with this insurance model option, check out the options:

  • Ituran;
  • Santander Seguradora;
  • BB insurance;
  • Bradesco Seguros;
  • Youse – Insurance company of Caixa Econômica Federal;
  • Generali Brasil.

Here are some tips for choosing a good vehicle insurance company:

1 – Research the company with people who work or have worked with it.

2 – Check if the institution is on the insurance superintendency (Susep) website.

Only companies authorized by the agency can work with insurance in Brazil.

3 – Choose a good broker, preferably one with experience in the market. He will guide you in the best possible way with a high level of professionalism.

This was the information we brought about monthly car insurance. If you are interested in taking out a policy for a plan in this modality, look for a good agency and a good broker. Good luck everyone.

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