Analysis
20 Nov 19

Maintaining a safe and accident-free fleet in Peru

Having an accident-free fleet is one of the main goals of any fleet manager seeking to keep drivers safe and total cost of ownership (TCO) down, something that is certainly true for Peru.

First of all, vehicle safety regulations are not very strict in the country. Among the features needed on cars, according to the transport and communication ministry, are very basic (e.g. bumpers, windows, and brakes). With that said, it is still important to consider vehicles with higher safety standards.

Latin NCAP, the Latin America and Caribbean regional car safety assessment program, can give you a good idea of which models to consider.


Renault Duster crash test in October: adult protection, 4 stars; child protection, 3 stars (source: Latin NCAP)
 

As for insurance, keep in mind that nearly three out of four cars on Peruvian roads do not have coverage and approximately 30% do not even have the SOAT obligatory insurance for bodily injury, according to Global Fleet’s Wikifleet page on the country.

SOAT is very complete as there is no limit as to the number of victims in an accident. It covers all persons who are victims of a traffic accident (driver, vehicle occupants and pedestrians).

While getting protection which includes bodily injury, collision, and theft can give you peace of mind, opening up a policy for only bodily injury and protection only in the case of a total loss could pose some high risks.

Some of the cheapest models to insure in the country are Suzuki Alto 800, Chery New QQ, Chevrolet Spark, Volkswagen UP, KIA Picanto, JAC J4, Hyundai i10, and MG 3.

On the flip side, executive cars like Jaguar XJ, Mercedes Benz Clase S, Land Rover Range Rover, BMW Serie 7, Volvo XC90, and Land Rover Range Rover are among the most expensive.

Maintaining good driving behaviour is one way to cut down on accidents. Approximately 82% of Peruvians drive their vehicles below the minimum standard of good driving, according to a study called "Driving Style" carried out by road safety company Tracklink.

This minimum standard means having no more than a 9% frequency of accidents, the maximum percentage "acceptable" in the European Union. In the case of Peru, this number is above 40%. Moreover, on a 0-100 scale with a minimum of 55 points considered acceptable, the average in Peru was 38.3

Ways to stimulate good driving habits are training courses, in addition to a company policy which includes a bonus system that awards motorist for good driving behaviour.

Finally, reducing the cases of vehicle theft obviously reduces TCO. This can be accomplished by educating your drivers, implementing telematics, and having stolen vehicle recover services such as tracking devices. The most stolen car brands in Peru are Toyota, Nissan, Hyundai, Kia, and Chevrolet.

Authored by: Daniel Bland
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