THE ESSENTIALS
Before you start
- The own-damage regime provides for automatic insured-value updates and an adjustment of the relevant premium.
- A different insurable value may be expressly agreed in the individual policy terms.
- Updating the relevant component does not mean the entire contract price falls by the same percentage.
The rule concerns own damage to the vehicle
Decree-Law No. 214/97 regulates motor contracts with optional own-damage cover. It provides for automatic changes to the insured value according to the depreciation table and adjustment of the premium to that depreciation. The table must make the criteria used identifiable.
The legislation permits a different insurable value where expressly agreed in the individual clauses. First locate the rule actually documented in your contract. Do not choose between a table and an agreed value solely from a conversation or an advertisement for a similar car.
Separate the elements of the total price
The regime links the proportional reduction to the premium portion for the total-loss event calculated from the insured value. The contract may include other benefits, loadings, discounts and charges. Understand what changed in each component before assessing the total.
Fictional example: the insured value moves from €20,000 to €18,000. That 10% difference does not, without a breakdown, establish that the entire annual price must fall by 10%. Ask for the relevant adjustment, the other amounts and any changes to rates or benefits to be explained.
Read the annual information alongside earlier documents
The legislation provides for annual written information, no later than 30 days before renewal, about the vehicle value for the next period, the premium and applicable loadings or discounts. Put that notice beside the individual policy terms and the previous notice.
Also compare the vehicle and equipment identified. A difference may follow a change in benefit, excess, insured value or another element; do not automatically attribute it to the car's age. Request any missing table or calculation criteria and keep the written response.
Prepare the comparison before renewing
To compare quotations with RMACHADO, gather the registration, vehicle version, current insured value, excesses and next renewal date. Both proposals should address the same benefits and value basis, or their differences should be clearly marked.
A renewal comparison does not decide a future total-loss payment. If a claim already exists, its calculation must be assessed against the specific file and contract. For today's choice, the aim is to understand the protection being compared and why the proposed price is being charged.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Find the depreciation table or express agreed-value clause.
- Compare current and next insured values with equivalent benefits and excesses.
- Request a breakdown of premium changes, loadings and discounts.
- Read and retain the annual information before deciding.
FROM THE ARTICLE TO YOUR SITUATION
Let us discuss your situation
Tell us what you want to protect. We review your request and help compare relevant terms. Requesting a quotation does not activate insurance.
Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.