Are you thinking of no longer counting your car insurance and want to better understand how the short-term table for cancelling auto insurance works? Then follow this article and learn more.
When you have auto insurance and want to cancel it, you must follow some rules so that you have part of the amount paid back or that you are only charged the amount corresponding to the period in which you used the service.
On these occasions, the short-term car insurance table comes in.
There are two situations in which the short-term table is used: when the insured decides to cancel the insurance or else to calculate the proportional coverage when the insurance is cancelled due to default.
See how the short-term table works.
The short-term table exists to identify the amount paid by the insurance according to the covered days covered.
That is, it shows what percentage of the policy’s total price was used in each period of days.
So, follow below an example of using the table and know how to calculate short term and better understand how it works:
But let’s assume you contracted auto insurance for your car, whose total policy value was R$ 2,600.
So, your contract is for 12 months of coverage, but in the fifth month, you had a problem and decided to cancel the insurance, which was paid in cash.
Therefore, you used 150 days of the 365 contracted in this case. According to the short-term table, this period used is equivalent to 60% of the premium already paid.
Cancellation at the request of the insured
To better understand how the short-term table works in case of a cancellation requested by the insured, follow another example to understand how to calculate insurance.
Let’s assume you decided to cancel the insurance after 60 days of use because you thought another insurer offered better conditions and the premium’s value was R$ 2,000.00. It was paid in 5 instalments of R$ 400.00 each instalment.
But, in this case, two instalments of R$ 400.00 had already been paid, totalling R$ 800.00.
Therefore, as it was used for 60 days until the cancellation request, and looking at the table, the premium percentage to be paid should be 30%.
So, 30% of R$ 2,000.00 corresponds to R$ 600.00, indicating an extra amount was paid. Then, the insured would be entitled to receive R$ 200.00 back.
Cancellation due to default
Thus, the same rule is valid in the case of default. So let’s consider the same values for insurance as in the case above.
But, the insured only paid the 1st instalment and then stopped paying. After all, that means he paid R$400.00, corresponding to 20% of the premium or 30 days of coverage.
In case your insurance is cancelled in days not so exact or not found in the table.
The correct thing is to consider the closest value to know how many days you would be entitled to coverage.
If the insurer cancels my insurance due to default, will it be able to negate
After all, the insurance was not used; that is, the customer is paying for something that he may need to use, and if you didn’t activate it, you didn’t use it. Do you agree?
But, ideally, do not fail to pay vehicle insurance since if it suffers a claim, the insurer may refuse compensation for late payment, considering the hypothesis that the protection has yet to be cancelled.
So, how will the insurer not indemnify you if you keep the contract active? Understand that if you are, for example, 2 months late, you do run the risk of not having insurance compensation. But, the company has its ‘active’ contract for payment.
So, make sure to pay your insurance policy on time. Negotiate with the insurer to keep your protection up to date. After all, nothing like being able to park the vehicle and travel more calmly, right?
So, now that you know how the short-term table for cancelling auto insurance works. But, if you have doubts about the term calculation, the consumer’s right to cancel insurance, fleet insurance or others, talk to your insurance broker.
