Answer:
Cost of avoiding insurance will only occur when there is a accident or major injury. Basically, when there is a related damage which could be covered through insurance and for which no insurance is taken then the person has to pay for the entire fault, whether it be a third party injury, self injury, or in case of vehicle insurance, payment for repair of vehicle.
The net amount is the cost, basically the amount paid for repair - the amount to be paid for the insurance as the premium.
Cost of avoiding insurance is the cost of loss, because of no insurance.