Four Key Points to Consider Before Purchasing Vehicle Insurance | OPINION

Marsh Peru Consultant

The acquisition of a vehicle, whether for personal use or for commercial purposes, leads to reflect on various aspects of great importance. On the one hand, it is necessary to consider that the handling of a vehicle can harm other people, as well as affect a property (public or private) in the event of an accident.

According to the latest data from the PNP, although during the past year, due to the quarantine and the restrictions that were imposed by the pandemic of the coronavirus, traffic accidents decreased by 30% in relation to the same period of 2019, the main cause of this type of accident continues to be the reckless recklessness of drivers, mainly due to the simultaneous use of cell phones, and fatigue.

On the other hand, it is necessary to take into account the investment made for the acquisition of the vehicle and the damage it may suffer as a result of a traffic accident or theft. According to the latest PNP records from October 2020, 20 vehicles were stolen daily in the capital.

“To cover personal injuries in the event of a traffic accident on a public highway, it is known that the first insurance that is activated is the Mandatory Traffic Accident Insurance – CLOCK which, despite being mandatory, has a penetration of around 73%. Likewise, you can also activate a vehicle insurance, which has a diversity of coverage according to the type of insurance that is contracted such as civil liability, theft or total loss, or against all risks. ”, Indicated Luis Alfaro, manager of Placement – Vehicle Insurance Marsh Peru.

However, there is always the great dilemma about which vehicle insurance to hire, since there are various aspects of the vehicle that must be analyzed to choose the most suitable product such as the make and model of the vehicle, age, commercial value and use of the same.

“For example, a 30-year-old truck, valued at US $ 5,000 that is used to transport cargo and circulates only in the department of Ancash between Chimbote and Huaraz; has a need for coverage other than a commercial range sedan vehicle, 10 years old (that is, outside the warranty period), valued at US $ 5,500, for private use, which is usually square on the street and not in private or guarded parking lots, with an average annual route of 4,000 kms. This, in turn, is also different from that of a high-end hatchback vehicle, 3 years old (within the warranty period), valued at US $ 25,000, for private use, which is usually parked in a private establishment or with surveillance and with an average route of 12,000kms ”, added Alfaro.

Without considering more detail and just to continue with the example; In the first case, the recommendation is that you take out an insurance of only Civil Liability against third parties, in the second, an insurance of kilometers that allows you to have limited all-risk coverage and paying a lower price given the number of kilometers you circulate It is in a much lower range than the average annual route that we have in Lima (10,000 kms.), and in the last scenario an All Risk insurance, that is, it has the coverage of Own Damages, Civil Liability against third parties and Personal Accidents .

Therefore, the differences between insurance will depend on these elements and contexts, and they are fundamental elements that any person or company should consider before purchasing insurance. Knowing the exposure to risks will allow a better analysis of the advantages and disadvantages of current products.

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