2023-08-24 06:22:18
In the Dominican Republic, the vehicle fleet continues its upward path. At the end of 2022, it totaled 5,463,996 units, according to statistics from the General Directorate of Internal Taxes (DGII). However, this increase in the park does not correspond to the number of covered cars or the quality in exceptional situations in the hurricane season.
With the passage of tropical storm Franklin through Dominican soil, the 5.4 million drivers are wondering: what does my vehicle insurance cover? Does it include flood damage? Under what circumstances? What is the cost according to type of car and year?
In the country there are vehicle insurance policies that are divided into two large lines: civil liability, known as ‘insurance by law’, which covers damages to third parties; and sure “full”. The latter includes two modalities: comprehensive risk (all natural risks such as floods, as well as collision and overturning) and fire and theft.
The insurance consultant Osiris Mota told elDinero that of the 5.4 million units registered by the DGII, less than 60% are insured, not including motorcycles. The latter, in turn, have less than 10% with third-party damage insurance. While less than 25% of the entire vehicle fleet registers comprehensive risk insurance.
“Vehicle insurance can vary according to the needs of the client. The law requires third-party damage insurance, but there are more complete options, such as comprehensive insurance, although it is more expensive,” Mota stressed, recalling that driver negligence is not covered by insurance.
He added that vehicle loans make more customers include their vehicles in comprehensive insurance. He explained that, in general, banks and customers with vehicle loans, especially new cars or less than five years old, have comprehensive risk coverage, since it works as a requirement for financing.
According to statistics from the Superintendency of Banks (SB), until April of this year, RD$62,960.3 million were allocated to the acquisition of vehicles, 18.6% more than in the same month of 2022 (RD$53,050.0 million) and 36.3% higher than the from two years ago. Of that amount, RD$38,223.6 million went to 0km cars and RD$24,736.7 million to used cars. Vehicle loans represent 16% of the total consumer portfolio (RD$391,654 million).
Mota added that the comprehensive insurance that is included in the vehicle financing is until the client pays the debt. Therefore, not always everyone continues with it once the credit installments are completed.
The cost of a legal insurance premium will depend on the policy limit and the type of vehicle. Mota indicates that new vehicles tend to have lower rates due to their resistance to accidents. For every million pesos of coverage, the insurance can cost between RD$50,000 and RD$60,000 per year, depending on the company and the risk. “If the vehicle costs two million pesos, the annual premium will be RD$120,000,” said Mota.
lack of data
Osiris Mota, an insurance consultant, stated that in the Dominican Republic there is not good data mining in the management of traffic accident statistics, uninsured vehicles and by type of policy. He believes it is essential to collect and share public data to implement effective measures and reduce the number of accidents in the country.
He said that the National Institute of Transit and Land Transportation (Intrant) must assume its responsibility in this pending task. “We are the country with the biggest accidents in the world, we must take measures that really have an impact. We cannot be sticking patches”, stressed the expert.
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