How is the value of car insurance determined?

Do you want to know how the value of car insurance is determined? Find tips here to help you know how much you will pay.

There is a lot of information and statistical data that insurance companies use to determine how much each customer will pay for their car insurance.

One of these pieces of information is the robbery and theft rate.

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The theft rate only grows

The vehicle theft rate is still a concern despite a reduction of around 30% from 2018 to 2019.

In the first quarter of the year, 46,844 incidents were recorded.

The best onboard technologies such as electronic ignition immobilizer, alarm and others delay theft by up to three minutes.

To overcome the situation and try to reduce the risks, the National Traffic Council (Contran) determined that all vehicles leave the factory with an anti-theft tracker.

This obligation has been constantly postponed and has not yet been implemented nor is there a forecast.

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On the one hand, there is pressure from car manufacturers claiming that the installation of the equipment would increase the final price of cars by at least R$600.00 and as the Brazilian consumer market is sensitive to price, any increase would have a negative impact on sales.

Furthermore, several vehicle models already come or left the factory with the equipment, but the consumer did not activate the system.

Another disadvantage is that the immobilizer does not prevent theft, it only locates the car after it has been taken and does not save the owner from losses caused by partial damage or damage caused to third parties.

The inefficiency of the equipment, the complexity of the telecommunications infrastructure necessary for the system to operate, the high cost and the non-obligation of activating the service indicate that there will be more postponements and could increase the value of car insurance.

That's why insurance is still the main protection to avoid losses due to theft or car accidents.

Some cars are more vulnerable to theft than others

To identify them, Cesvi Brasil (Center for Experimentation and Road Safety), a research center dedicated to the study of automotive repair, calculated the Theft Index by evaluating the safety items of vehicles sold in the country according to the quantity and quality of the devices. of protection.

This identifies for the consumer the vehicles best equipped with devices that make it difficult to violate property.

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The components evaluated were immobilizers (anti-theft devices, interconnected to the injection module, which have the function of blocking the engine from starting if the correct vehicle key is not used), alarms (original systems that warn of vehicle tampering through sound and/or light warnings), and steering wheel locks (the function of which is to mechanically prevent the rotation of the steering wheel after removing the key), laminated side windows, the vehicle key (main item for the vehicle to be started and which has several operating characteristics and different types of mechanical and electronic secrets) and the position of the battery (a very important item that can be vital so that the vehicle's alarm is not easily disabled).

The key and the alarm are the items with the greatest weight in the index calculation, followed by the immobilizer.

Vehicles were rated on a scale ranging from 0 to 5 stars.

Among the safest are the Chevrolet Cruze LTZ sedan, which came first in the evaluation, followed by the Ford Ka Sport.

Honda appears in third place, with the Fit minivan and Civic sedan tied with GM's Cobalt and Cruze LT.

In sixth place are Novo Gol and Fox from Volkswagen, Fiat (Palio, Novo Palio, Novo Punto and Grand Siena), Nissan (March) and Renault (Sandero).

In the last positions are the Chinese Chery QQ and JAC, represented by the J3, J3 Turin, J5 and J6 models.

Market value x determined value

The way in which the compensation will be paid has an influence on the final value of the insurance.

At the time of contracting, it is possible to choose the “value” to be received if something happens to the vehicle and results in a total loss.

The most common option is to opt for insurance that compensates according to the market value, normally the Fipe Table is used.

In this case, 100% of the corresponding amount or a percentage above or below may be paid as agreed between the parties.

Another possibility is to receive the determined amount.

In this case, the person chooses the amount they want to receive and the insurance company calculates the premium based on that.

The second option can be used, for example, when the person knows that their car is worth less than the market value and wants to take out insurance that is more in line with reality.

By lowering the value of the compensation you may be able to have cheaper insurance.

However, if you think the car is priced above the market, you can also opt for this route, however you will end up paying more for insurance.

It is worth noting that it is not enough for the person to determine how much the car is worth and everything will be fine, the insurance company needs to approve this value for the insurance to be approved.

How to find out the value of car insurance

The risks of car theft, market value and security items are just some of the items that will help determine the value of car insurance.

There are many other items such as:

Driver age: the younger the driver, the more expensive he will pay for insurance. This happens because they have little experience behind the wheel and are more likely to be involved in accidents.

Enabling time: This factor is also linked to the driving experience and its risks.

Driver's gender: the difference in relation to sex is a result of statistics. Women tend to suffer fewer accidents and have cheaper insurance.

Driver history: Drivers who have many infraction points on their license or who have already claimed their insurance several times generate a greater risk for insurers, as a result of which they pay more.

Vehicle model: the value of the insurance will repair the losses caused by the car and the more expensive it is, the higher the insurance will be. For example, the average price of insurance for the Kwid is R$3,100.00, while for the Cross Fox the average is R$3,200.00.

Place of residence: places considered dangerous because they have a high record of thefts end up increasing the value.

Parking: Owners who park their cars in the garage, both at home and at work, tend to pay less.

Trackers: Despite not preventing theft, this equipment helps locate the vehicle, with a high recovery rate.

Coverages: depending on the protection chosen, you will pay a fee for it. Simple coverage against robbery and theft only is cheaper than complete coverage that includes collisions, damage to passengers, third parties and others. But if you want to include auto towing insurance, the price will be a little more expensive.

Franchise: The deductible and the insured's participation in the event of a partial loss that requires repairs. The higher it is, the lower the prize value tends to be. The opposite also occurs.

Driving habits: Many insurers are already monitoring how their policyholders drive and rewarding those who have good driving habits. Using equipment installed in the car or applications, they can understand what braking, acceleration and average speed are like and this influences when the policy is renewed.

When choosing one of the best car insurance for 2019, do a lot of research on insurers and different quotes.

This way, you will know the average price of insurance for the Ford Ka, Gol, among other vehicles and guarantee a safe contract and a fairer price.

Now that you know how the insurance value is calculated, just choose yours and protect your vehicle, remembering how to make it cheaper.

Get your quote at SeguroAuto.org and see the value of car insurance for you.