Many drivers in Puerto Rico believe they are «insured» because they paid for their marbete (registration sticker). In reality, what comes with the marbete is minimal protection that leaves out most of the risks that can actually cost you money. Here is what each piece covers and where the gaps are.
The two protections that come with the marbete
ACAA. The Automobile Accident Compensation Administration pays benefits for bodily injuries to people hurt in a traffic accident, regardless of who was at fault. It does not pay for damage to vehicles or other property.
Compulsory liability insurance («compulsorio»). It covers damage your vehicle causes to other people’s property —usually the other driver’s car— up to a low limit set by law. If you have a private policy with liability coverage, you can present it when renewing your marbete and skip the compulsory premium; that is what the voucher we process at our office is for.
What compulsory insurance does not cover
- Damage to your own vehicle. If you crash, or an uninsured driver hits you, repairing your car is not covered.
- Theft of your vehicle, vandalism, a falling tree, flooding or fire.
- Damage above the limit. If the car you hit is new or high-end, the repair can easily exceed the compulsory limit. The difference can be claimed from you.
- Injury lawsuits. ACAA handles the injured people’s medical costs, but it does not protect you if you are sued for damages.
- Towing, rental car or roadside assistance.
What full coverage adds
A private auto policy is built from parts. The most common are:
- Liability: property damage and injuries you cause to others, with limits far higher than the compulsory coverage, plus legal defense if you are sued.
- Collision: damage to your vehicle in a crash, regardless of fault, minus the deductible.
- Comprehensive: theft, fire, vandalism, glass breakage, falling objects and other non-collision events.
- Uninsured motorist: very important in Puerto Rico, where many vehicles carry only the compulsory coverage.
- Rental car and towing, so you are not left stranded while your car is repaired.
Why minimum liability rarely goes far enough
Repairing a modern vehicle has become much more expensive: sensors, cameras, airbags and imported parts. A crash that used to cost little can now cost several times the compulsory limit. And if people are injured, a lawsuit can demand amounts that have nothing to do with the value of your car. Liability limits on a private policy exist to protect your assets, not just your vehicle.
Three situations worth confirming
- If your car is financed, the lender usually requires collision and comprehensive. Also ask about «gap» coverage, which pays the difference between what the car is worth and what you still owe after a total loss.
- If you use your car for work —deliveries, ride-hailing, sales— a personal policy may exclude that use. Say so when you buy coverage.
- Belongings inside the car are usually not covered by the auto policy; they fall under your homeowners policy.
Want to know what you have today?
Bring us your policy or your marbete and we will tell you clearly what is covered and what is not. We compare options across several insurers. Call us at (787) 754-8090 or request guidance online.
This article is general information. Coverage, limits and exclusions depend on current law and the terms of each policy.