Features
14 Feb 24

Survey: only 25% of Mexico’s small company fleets is insured

Only a quarter of small and medium companies have mandatory car insurance, according to data from the Mexican Association of Insurance Institutions (AMIS).

The total amount of uninsured cars in Mexico is 39.8 million, or 72 percent, which is an increase of 13 percent compared to five years ago. The absence of car insurance coverage combined with the increase in traffic accidents has the potential to impede business growth and put the company's assets at risk, according to insurers. 

Car accidents result in substantial expenses, including hospital debts, damage to public roads, vehicle repair, car recovery, and costs associated with fatalities, according to data from insurance company GNP Mexico.

The average cost of a road accident is MXN25,000 (€1,354) up to MXN450,000 (€ 24,383) in case of serious injury. The catastrophic cases exceed MXN1.5 million (€ 81,000), according to data from the Mexican Association of Insurance Institutions (AMIS).

The Transport Institute calculated that the economic costs are around $27.5 billion (€29.6 billion), according to the latest estimates (2018). The fine for not having car insurance is up to MXN4,000 (€215).

 

 

Source: AMIS

AMIS data reveal that the number of cars without insurance increased by 13% in the last five years, although in Mexico it is mandatory to have car insurance.

Picture credit Shutterstock: 569376328

 

Authored by: Rodrigo Alonso