For people who use their car to get to and from work, or drivers who use their vehicles as a source of income, insurance – which has registered an increase in recent times – can become indispensable. The shortage in the production of new vehicles and spare parts, the impact of the pandemic in Brazil and in the world and the increase in the Fipe Table were the main drivers for this growth in the cost of car insurance, according to CNseg data ( National Confederation of General Insurance Companies).
According to a survey by consultancy Jato, the average price of new cars sold in Brazil last year was R$ 130,851.00. The value represents an increase of 85% in five years. In 2017, the average value of a vehicle was BRL 70,877.00. In 2018, there was a growth of 4.8%, around BRL 74,313.00. Before the covid-19 pandemic, in 2019, the cost was BRL 76,430.00.
Also according to the consultancy Jato, the increase in the average price of vehicles occurred between May and June 2020, which was characterized by the drop in the number of sales of new cars associated with the social isolation that Brazil and the world experienced in the period. The big increase started in December, when the shortage of raw materials and semiconductors began to impact the global production chain.
Other reasons were the increase in the price of international freight, the instability of the dollar and technological development. For André Brunetta, Director of Digital & Innovation at Estapar, car insurance has become more expensive due to the rise in the price of cars and parts in Brazil in recent years.
For him, the main reason was the Covid-19 pandemic, starting in March 2020, which caused the temporary closure of semiconductor factories worldwide and jeopardized the production of zero kilometer models. “The increase in the search for semi-new and used vehicles has meant that, following the law of supply and demand, vehicles have gone up in price. The smaller number of parts also had the same effect”, he points out.
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According to CNseg, between January and November 2022, auto insurance increased by 33.6% compared to the same period in 2021, with R$ 45.8 billion raised. A survey by FenSeg (National Federation of General Insurance), which CNSeg is part of, showed that around 30 to 35% of the fleet of vehicles currently circulating in the country is insured, indicating a strong potential for attracting new consumers to the sector.
“To get around this high and not leave the car uninsured, the main tip is to hire exactly the risk requirement that the insured person needs. There is a practice in the market of always offering more coverage”, he explains.
In the current circumstances, according to him, “the most appropriate thing is to acquire adequate insurance for the exposure to risk, as well as your ability to pay in addition, of course, to research a lot among the various insurance companies, which have their own pricing policies in relation to the vehicles in their respective portfolios”, comments Marco Gonzaga, Head of Insurance at Zul, one of the Grupo Estapar companies. For the businessman, the applications, such as his business, manage to deliver several proposals to the drivers, so they do not need to go and consult several insurers to make this comparison.
It is worth noting that there is not just one type of insurance for a vehicle: cars can have protection against robbery and theft, disaster coverage and compensation for total loss. In addition, there is third-party vehicle, passenger accident and complete package insurance, called comprehensive vehicle insurance.
All types of vehicle insurance have advantages and limitations. Assessing the car’s needs and defining the modality that best fits the driver’s reality is an idea.
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