The cost of car maintenance in Brazil is increasing every day. This time, research indicates that Car insurance rates It grew by 15% in the last year. In 2022 as a whole, the combined increase hit the 12.3% mark.
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The data is part of the Auto Insurance Price Index (IPSA), which is organized by TEx, a data intelligence platform.
Factors affecting the insurance value
This increase is directly related to the effects that continue to arise from the pandemic. Similarly, the increase in the accident rate due to the reopening of the economy and the return of cars to the streets also had an impact on the shortage of parts and other components in the period. It should be noted that this scenario still affects the sector’s production chain.
In this sense, there is news of interruptions in car production by automakers. This even occurred due to a parts shortage, which reduced the number of new vehicles ready for purchase. In practice, this measure affected the price of vehicles, as well as the final value of insurance services.
This is caused by insurance companies pricing insurance based on rates set in the Fipe table, which determines the average price of vehicles in the national market. However, as the value of the vehicles increased, so did the claims again because higher amounts had to be paid than the price had previously been.
But don’t stop there…
When analyzing the macroeconomic scenario, other factors such as customer profile also influence the final value of the insurance. This is because characteristics such as age and where they live, for example, are included in this calculation. This is because there is variation, for example, in the rate of vehicle thefts between different cities or even neighborhoods.
Another factor is age: IPSA data, in short, shows that people who live in the same area, but are of different ages, will get different bids for the same car.
Finally, vehicle characteristics such as age and Fipe List value also change the insurance rate calculation. For example, hybrid or electric cars are, on average, 30% cheaper to insure than petrol ones. This is due to factors such as the fact that there are fewer thefts.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.