Insurance cost is one of the issues many consumers consider before buying a car. Paying around R$3,000 per year, in addition to vehicle installments, maintenance and fuel expenses, has not made sense for some drivers, especially for younger people, who prefer to resort to car rental companies or shared car applications, such as Uber and 99. On the other hand, there is a group that does not give up the car to get around, however, due to the high prices of the policies, they prefer to rely on luck rather than get the guarantee. These and other reasons lead 84% of the Brazilian fleet to be uninsured, as indicated by 2019 data from the National Traffic Department. In order to expand access to vehicle insurance, the Superintendence of Private Insurance (Susep) will make rules and criteria more flexible.
The new standard, which comes into effect on September 1st, allows, for example, the insurance to be personalized. The owner of an old vehicle that does not find it advantageous to hire coverage for theft and robbery can opt only for insurance for accidents, such as collisions and fires, paying cheaper.
It will also be possible to link the insurance to the driver, rather than the vehicle. This way, all cars that a specific driver drives will have the active warranty. The product is ideal both for the driver per application who usually rents cars to work, and for the young person who does not have their own car but rents one occasionally or drives one from friends and family.
— Coverage for damages caused to third parties, for example, which is linked to a car will, in this case, be linked to the driver. So, if he is driving another vehicle and causes an accident, he may have the insurance coverage to pay for the personal and material damages caused to other people – adds Mariana Arozo, general coordinator of mass insurance, people and social security regulation. Susep.
This is called civil liability coverage, which can even be contracted exclusively. The CEO of the Wiz insurance and financial product distribution channel manager, Heverton Peixoto, assesses, however, that this product should take some time to become popular.
— Brazilians are very attached to their own heritage. Often, you take out insurance thinking more about protecting the car you bought, lowering third-party coverage. Therefore, I believe that people will take a long time to adopt civil liability insurance, which is already very common abroad. It depends on the maturation of the culture so that the client understands how to cheapen their toppings with what really matters – says Peixoto.
Another novelty is the partial coverage. Instead of choosing to receive the full value of the car in the event of an accident, the insured can choose to be reimbursed with half of the value. By sharing the risk with the operator, it will also pay cheaper in the contract.
According to the Automobile Commission of the National Federation of General Insurance (FenSeg), from January to June, the accumulated volume of premiums totals around R$ 17.5 billion, a nominal expansion of 6.8% compared to the same period in 2020 And expectations for the coming years are even more optimistic: it is expected that the changes announced by SUSEP will contribute to bringing innovation and competitiveness to the market, allowing the expansion of the insured base based on products adjusted to consumer needs.
safe on and off
Since 2019, Susep has allowed intermittent insurance, in which the customer can “turn on and off” coverage and assistance whenever they want, according to their needs. Customization is a trend in the market. Eduardo Menezes, executive superintendent of Bradesco Auto/RE, says that insurance companies have to adjust and offer the most adequate insurance conditions and services to the consumer.
— The price of insurance in this type of contract may be more competitive for some situations of occasional use of vehicles, but it is important to be aware of periods when the insurance is not in force (activated), and the vehicle is subject to risks even if stopped — alert.
Estimates by Youse, which offers this type of contract, show that savings can reach approximately 44%. In practice, it is not possible to completely deactivate the insurance because of the need for inspection. However, the customer can, for example, discontinue towing and locksmith assistance, as well as third-party coverage, in order to maintain a minimum policy.
“Despite being exposed to very low risk, it still exists. Someone might hit the car parked in the garage, for example. There may be a problem with the gate and affect the vehicle. So it’s interesting to keep a basic package that fits in your pocket – argues Federico Salazar, product director at Youse.
Due to advances in technology, the CEO of Wiz insurance and financial products distribution channel manager, Heverton Peixoto, believes that this could change in a few years. With more ‘smartcars’ on the streets — vehicles with bluetooth, trackers and that connect to cell phones — insurers will find it easier to price policies, and customers will have greater convenience.
– Have you ever thought if insurance companies could know when the car is moving or not? This could be a solution for activated insurance really for use — projects Peixoto: — Today, there are high costs with fraud and with customer acquisition, a step that involves from explaining the product to carrying out the inspection. So, if technology can resolve these issues, we will see prices drop a lot.
For all tastes and budgets
Another coverage alternative that is already present in the market is the insurance per kilometer traveled, in which the customer pays according to the use of the vehicle. The final amount is calculated from a fixed amount, established according to the customer’s profile, plus a variable charge of cents for the distance covered.
Federico Salazar, product director at Youse, says the product can be up to 30% cheaper than other conventional insurance.
After starting home office work during the pandemic, 34-year-old systems analyst Thiago Veloso moved from a conventional contract to one per mileage. With that, he saw the monthly expense drop from R$170 to R$110.
– I think it’s important to maintain insurance not only for theft or robbery risk, but for assistance such as towing and mechanic for any problems – he says.
For those who want more comfort, there are conveniences that can be added to the basic package. In addition to 24-hour assistance, services are offered to the residence, such as locksmith, plumber and electrician; veterinary consultations for pets; and friendly driver, for when the insured cannot drive the vehicle for specific reasons.
The companies also offer internal cleaning of the car, in case of flooding inside the vehicle; concierge help, with appointments, reservations and various guidance services; and offer a reserve car in the event of an accident, that is, while the car is being repaired — the insured person has a rental vehicle at their disposal.
Expensive or cheap?
According to industry experts, the possibility of contracting insurance linked to the driver will enable, for example, a driver with three cars in the garage to take out only one policy with the average or the highest value. It will also allow the consumer to pay cheaper when taking a car from the rental company, not having to bear the built-in insurance.
Despite this, the product director at Youse Federico Salazar warns that the modality, which is yet to debut in the national market, may be more expensive than conventional insurance.
According to him, the coverage will not be unrestricted. The consumer must choose the value of the car to be covered. However, as there is a huge range of brands and models in the same price range, the insurer will not be sure of the risk it will assume, increasing the cost of the premium (amount paid monthly by the insured).
— The value of car parts that may need to be replaced in case of problems or accidents enters the calculation. Without this predictability, the insurer must increase the cost of insurance. So, it should still be more advantageous to take out the specific insurance – evaluates.
Beware of fake insurance
Based on the diversification of products, it is necessary to be careful not to be caught by an offer that is too attractive, which does not offer real guarantees for the vehicle. The so-called vehicle protection, according to FenSeg, is part of the parallel market. In addition to not recognizing consumer rights, it does not pay taxes and is not inspected.
In this type of contract, the associate himself assumes the risk, together with the other associates, by signing a mutual responsibility contract. In case of loss, an apportionment is made among all. Therefore, the indemnity payment depends on the entity’s cash. In addition to the fixed monthly fee, there is a variable amount, intended to cover claims if the reserve is not sufficient.
“Insurance is a consumption relationship provided for in the Civil Code and the Consumer Defense Code (Law 8.078/1990). When contracting coverage, the insured transfers the predetermined risk in the policy to the insurer. The company is responsible for paying indemnity in the event of a claim. There is strong concern about how the amounts received are divided between obligations and rights of insurers. It is worth remembering that insurance is part of a regulated market, subject to supervision by SUSEP”, says FenSeg.