Is car insurance expensive? See if it's worth going without!

Do you want to save money because you are paying a lot for car insurance? Take note of our tips and see whether or not it pays to stick to your plan.

A very common question is to what extent it is worth paying a lot for car insurance, especially when the cost is quite high. To be able to arrive at an answer, you must first reflect on some factors.

You must calculate the risk you are willing to take, the amount being paid and many other variables. To help with this decision, here are some tips.

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Assess the risks

Are you willing to be robbed or get into an accident and lose your car? Although the percentage of robberies is “low” and so are car accidents, it is not at all impossible for you to get involved in one. To feel a little safer and more protected, many people end up opting for insurance, since the answer to that question is no.

How important is the car?

In addition to considering the risks, you should also think about how valuable your car is, but not just in financial terms, but in everyday life. How much do you depend on your car to go to work, take your children to school, go for a walk, etc.

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If you realize that most activities depend on the vehicle or that the most essential activities cannot be carried out without it, insurance becomes almost mandatory in this case. So, you may not be paying too much for car insurance.

Is the insurance cost expensive?

The argument that insurance is expensive is common enough for people to give up on it, but is this really true?

On average, the cost of insurance is around 10% of the value of a vehicle, in this case, you would have to pay for insurance for 10 years for it to correspond to the value of the car. Now, imagine that your vehicle was stolen in the first year of use, if you have insurance you will save around 90% of its value, if you don't have it, your loss is 90%.

In cases where the insurance is usually higher, around 30% of the value of the car, the full value of the car would be paid in just over 3 years. This may put some people off guard, but the rule remains the same. Furthermore, this cost tends to be for more luxurious cars that don't usually stay in the same owner's hands all that time, which ends up being worth it.

What benefits can insurance offer?

What is often forgotten is that insurance can protect not only in cases of theft and theft, but in other types of accidents. In the case of a car collision that costs, for example, R$200,000, the repair can be very expensive, close to the amount paid in insurance.

If you have a simpler car, then you might think that at this point you have a disadvantage, after all your car isn't worth that much. Mistake. In addition to having to repair your car, which isn't cheap, you also have to worry about other drivers who may not have insurance.

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In the event of a collision caused by you, you will need to repair your car and the car involved in the accident, the amount paid by insurance is usually much lower than what will be paid to repair the damage.

Rethink which insurance company is best

If even after doing the math and checking the benefits you are entitled to with car insurance you are still not satisfied, rethink the insurance company. This is because you may be using an insurance company that has higher values ​​and fewer benefits.

The ideal is to look for other options on the market and make comparisons to find an option that best fits your budget and does not leave you without protection. After all, no one wants to have to worry about their car all the time and run the risk of being left without it because they simply think that insurance is not essential. In this case, it is better to pay a lot for car insurance than to have all the expenses incurred in claims.

How to avoid paying too much for car insurance

If you believe you are paying too much for car insurance and want to reduce this amount, talk to your broker. Analyze with him the coverage included, which ones can be removed from your plan as they are not necessary and also ask him to provide new quotes.

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There are many renowned insurance companies on the market and you can transfer your insurance to any of them. Pay attention not only to the value of the plan, but also to the coverage offered. There is no point in saving R$300.00 and not having one or more essential coverages.

Furthermore, also check what bonuses and premiums, as well as extra coverage, that insurance companies offer. For those who are paying a lot for car insurance and want to save money, it is worth “earning” any extra on the plan.