All motor vehicle drivers in Puerto Rico are required by law to have an auto liability insurance coverage of at least $4,500 for property damage to third parties. In the event of a traffic accident, this insurance covers damages to third parties. When obtaining or renewing your vehicle registration, you are given the option of obtaining compulsory liability insurance from the insurance company of your choice.
Let’s go into the details of what is covered if you have an accident.
What is the compulsory liability insurance?
Compulsory insurance is a personal liability insurance policy that covers damages and injuries caused to third parties in a traffic accident, up to a maximum of $4,500. Law No. 253-1995 establishes that this insurance is mandatory for all motor vehicle drivers, and not having it can entail severe consequences.
What does the compulsory liability insurance cover?
Compulsory liability insurance covers the bodily injury and financial loss you may inflict on others if your vehicle is involved in an accident. These insurance policies usually provide the same coverage, namely:
- Medical expenses: If you are responsible for the accident, the compulsory liability insurance will cover the medical expenses of those injured in the accident. These expenses may include medical treatment, hospitalization, and rehabilitation.
- Vehicle repair expenses: The costs of repairing the vehicles of the other parties involved in the accident are also covered by the compulsory liability insurance. These expenses include labor costs as well as the required replacement parts.
- Property damage: Compulsory liability insurance also covers the cost of repairing damages to third party property, such as buildings, fences, and poles, among others.
What is not covered by compulsory liability insurance?
It is important to remember that compulsory liability insurance does not cover your own medical expenses or any damage to your vehicle in an accident. In order to cover those expenses, you will need to acquire a traditional public liability insurance.
What if I don’t have insurance?
Having a vehicle without liability insurance, be it compulsory or traditional, is considered a misdemeanor and is subject to a $500 fine. Additionally, the law enforcement officer will file a report and remove the vehicle’s license plate, effectively barring the vehicle from circulation. Meanwhile, the driver will be held responsible for the medical and repair expenses.
In short, the compulsory liability insurance is essential to protect third parties in case of a traffic accident. As a driver, it is important that you understand insurance regulations. Although the compulsory insurances offered by other companies offer the same coverage, it is advisable for you to seek guidance and obtain a policy issued by a solid and reputable company.
Learn about the benefits of the Triple-S Propiedad policy and how to obtain it at https://propiedad.grupotriples.com/en/compulsory-auto-insurance/.
