At C1 Broker, we work every day to protect our clients’ rights, especially when it matters the most — in the event of a claim.
As a specialist insurance broker for expatriates living in Portugal, we not only help our clients find the best insurance but also provide full support when a claim arises, ensuring that their rights are fully respected.
Recently, we handled a real case that perfectly illustrates the importance of having an expert broker by your side — someone who understands both the insurance contracts and the legal framework in Portugal.
What Happened?
Our client — an expatriate living in Portugal — was involved in a car accident where they were not at fault. The impact was severe, and the vehicle was declared a total loss after the inspection, meaning the car was either technically irreparable or too expensive to repair compared to its value.
When the claims process started, the insurer decided to apply the IDS Agreement (Indemnização Directa ao Segurado). This is a very specific mechanism used only in Portugal, which often comes as a surprise to expatriates who are used to different insurance processes in their home countries.
The IDS is an internal agreement between Portuguese insurers designed to simplify and speed up the settlement of minor car accidents where liability is clear. Instead of filing the claim directly with the at-fault driver’s insurer, your own insurance company pays for your damages — but based on pre-set compensation limits that are agreed upon between companies, not necessarily reflecting the true market value of your vehicle or the real cost of repairs.
It’s important to understand that the IDS is not part of Portuguese law; it is a private arrangement between insurers to facilitate efficiency in small claims. While it can be helpful for minor fender-benders, it is absolutely not appropriate for serious cases like total loss accidents, where the costs far exceed the IDS limits.
In this case, relying solely on the IDS would have left our client severely undercompensated — with an offer of only €18,700, compared to the full insured value of the car under the Own Damage coverage, which was €27,635.
Where Was the Problem?
The problem was simple but serious: by applying the IDS protocol to this case, the insurer attempted to settle the claim based on the capped values from the IDS agreement rather than the actual coverage the client had purchased.
This is something that many expatriates don’t realize: the IDS agreement is designed for the convenience of insurers, not necessarily for the benefit of clients. It simplifies claims handling between insurance companies in small accidents but has strict limitations that are completely inappropriate when dealing with significant losses, such as a total loss vehicle.
Even though the client had a fully comprehensive policy (Own Damage coverage), which guarantees payment up to the insured value in events like total loss, the insurer chose to apply the IDS to minimize its financial exposure. This would have resulted in the client receiving €8,900 less than the amount they were contractually entitled to.
What Did C1 Broker Do?
Our team at C1 Broker, with deep expertise in the Portuguese insurance market and vast experience assisting expatriates, immediately stepped in to defend our client’s rights.
We formally reminded the insurer that the IDS is merely an administrative protocol between insurers and cannot override the contractual rights of the client. This is clearly stated in Article 45 of Portuguese Decree-Law No. 291/2007, which regulates motor insurance in Portugal:
“Agreements or conventions between insurance companies cannot result in any reduction of the legal or contractual rights of policyholders, insured persons, or third-party claimants.”
Furthermore, we pointed out that the client had the full right to activate the Own Damage coverage, as outlined in their policy. In this case, the correct procedure was:
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The insurer pays the full insured value to the client, in line with the contract.
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The insurer can then — if it wishes — recover that amount from the insurer of the at-fault driver through a legal mechanism called subrogation, which is also protected under Article 136 of the Portuguese Insurance Contract Law (Decree-Law No. 72/2008).
This is the standard and legally correct way to handle claims involving total loss when the insured has comprehensive coverage.
The Outcome?
Thanks to the quick and decisive intervention from C1 Broker, the insurer admitted its mistake and agreed to process the claim through the client’s Own Damage coverage, as should have been done from the beginning.
The result? The client received the full insured amount of €27,635, rather than the €18,700 that was initially offered under the IDS system. A fair settlement, fully in line with the insurance contract and the law.
Conclusion: Why Expats in Portugal Need C1 Broker
This case is a perfect example of why expatriates living in Portugal need a specialist broker like C1 Broker. The Portuguese insurance system can be complex and often works very differently from what you may be used to in other countries.
At C1 Broker, we are more than just an insurance broker. We are your partner in Portugal — here to make sure you are fully protected, not only when you buy your insurance but also when you actually need to use it.
When you have a claim, we are by your side. We help you navigate the system, defend your rights, and ensure that your claim is handled fairly, legally, and in line with your contract — not just the internal convenience of insurers.
If you are an expat living in Portugal, having C1 Broker as your broker means peace of mind. You are not alone. We are here to defend your interests.
Need Help with an Insurance Claim in Portugal? Contact C1 Broker Today.
At C1 Broker, we are experts in serving the expatriate community in Portugal. We work with the top insurance companies, including Allianz, Zurich, Fidelidade, Ageas, Liberty, Victoria, Mapfre, Generali, Tranquilidade, and many others.
If you feel your claim is being unfairly handled, or if you simply want professional support through the process, contact us:
📞 +351 282 096 619
📧 info@c1broker.pt
🌐 www.c1broker.pt
Or submit your claim directly online here: https://c1brokers.pt/en/file-a-car-insurance-claim-in-portugal/
At C1 Broker, we don’t just insure your car — we protect your rights.
