(SÃO PAULO, Brazil) – Only three in every ten vehicles in Brazil carry insurance, leaving 71 percent of the country’s car fleet without cover. Data from the National Confederation of Insurance Companies shows that 44 million vehicles circulate without protection against theft, robbery or accidents.
The main reason cited for the low coverage rate is cost. Annual premiums can be out of reach for many households. One family in São Paulo lost their uninsured 1988 Monza to theft on 8 July. The car was used to transport two children with special needs to therapy sessions. Insurance quotes from the few providers willing to cover a vehicle of that age averaged R$800 per year (approximately US$152, £120 or €140). That sum was beyond the family’s means, as they were already saving to buy a wheelchair, an orthopaedic vest and a standing frame for their two year old child.
After the theft was made public, the family received a series of scam calls. Callers sent photographs of the vehicle and demanded instant payments via Pix, Brazil’s real time payment system, to return the car. The family also received calls in the early hours of the morning from people attempting to extract money.
The experience has forced a costly change. The family must now finance a replacement vehicle, pay for a garage to store it, and take out an insurance policy. The owner said the situation had left her with no choice but to purchase cover.
Insurance specialists say the problem goes beyond income. There is also a cultural tendency to accept risk and underinvest in prevention. Many uninsured drivers assume nothing bad will happen. That view ignores the scale of vehicle crime in Brazil. About 220,000 cars are stolen without violence each year, while another 120,000 are taken in robberies. That totals roughly 340,000 vehicles lost annually. In addition, more than 80,000 road accidents involving victims occur each year across the country.
Experts describe going without insurance in Brazil as a deeply mistaken decision, given the combination of traffic risk and public safety conditions.